KATHMANDU, FEBRUARY 20

Spokesperson for the Ministry of Foreign Affairs Sewa Lamsal today said that Nepal's sovereign Parliament would decide what development assistance was needed in the best interest of Nepal and Nepali people. She was responding to media reports in context of the Millennium Challenge Corporation's Nepal Compact.

'Nepal has been pursuing an independent, balanced, and non-aligned foreign policy.

In pursuant to this policy, as a sovereign country, Nepal has accepted and utilised development assistance as per its national requirement and priority,' Lamsal said in a press release issued by MoFA.

'Development assistance has played an important role in infrastructure-building and development in Nepal and the Government of Nepal remains grateful to our neighbours and the friends with whom Nepal has traditionally been enjoying strong partnership and cooperation, as well as regional and multilateral development partners, including the United Nations, for their continued support to the socio-economic development of Nepal,' Lamsal added.

She said the decision to accept development assistance was taken by Nepal considering its national interest.

Yesterday, the US Embassy in Nepal issued a press release, saying that the MCC compact's ratification is Nepal's sovereign decision.

The US Embassy's remarks came a day after the Chinese foreign ministry spokesperson commented on the MCC compact in Beijing.

The US Embassy said in its release that the decision to ratify the MCC compact was solely Nepal's decision as a sovereign democratic nation.

The US said the $500-million MCC grant was a gift from the American people and a partnership between 'our nations' that would bring jobs and infrastructure to Nepal and improve lives of Nepalis. The US said the MCC project was requested by the Nepali government and was designed to transparently reduce poverty and trigger economic growth in Nepal.

On February 18, China's Foreign Ministry Spokesperson Wang Wenbin said during a regular press briefing in Beijing that China opposed coercive diplomacy and actions that pursued selfish agenda at the expense of Nepal's sovereignty and interests.

Wang made the remarks when asked by a journalist to comment on US State Department spokesperson's recent remark that Nepal must decide whether it will ratify the MCC compact between the two countries by February 28, otherwise it will have an impact on the US-Nepal bilateral relationship.

Wang said, 'We have noted relevant reports. China is glad to see the international community conducting development cooperation with Nepal to contribute to its economic growth and livelihood improvement. However, such cooperation should be based on full respect for the will of the Nepali people and come with no political strings attached.'

'We sincerely hope for continued goodwill of our friends,' Lamsal said in her statement.

A version of this article appears in the print on February 21, 2022, of The Himalayan Times.