Kathmandu, November 28
While the government has made its position clear on whether or not to take loans from China's Belt and Road Initiative (BRI) during Prime Minister KP Sharma Oli's visit to China beginning December 2, experts and former ministers have emphasised that Nepal's priorities should be maximised and not to sign implementation plan in haste.
Speaking at a seminar on Navigating Strategic Implications of BRI for Nepal organised by the Centre for Social Innovation and Foreign Policy (CESIF) in Kathmandu, Prakash Sharan Mahat, Former Minister of Finance, emphasised that BRI is China's strategic tool for globalising its engagement and increasing its presence and influence in order to achieve its national interests and broader visions.
"The Nepali Congress's (NC) stance is that there should be a common yardstick for Nepal's engagement with all partners, which must prioritise the country's national interests. However, Nepal has had the tendency to lack preparations and make last-minute decisions, due to which we face problems eventually," he said.
"Therefore, we must take as long as it takes to reach a consensus based on Nepal's own national interests and priorities and not sign the Implementation Plan in haste. Irrespective of all other dimensions, in summary, Nepal should not accept loans under the Initiative, especially when China is yet to deliver on its several grant commitments to Nepal."
Former Minister for Foreign Affairs, Pradeep Gyawali, emphasised the importance of having adequate discussions on important bilateral and multilateral agreements, particularly in dealings with neighbouring countries and superpowers, before entering into agreements with long-term consequences.
"Instead of assessing where Nepal's interests and priorities align with the Chinese Initiative and how to benefit from it, our discussions and debates have been limited to a loan versus grant narrative," stated Gyawali, who is also deputy-general secretary of CPN-UML. "Nevertheless, Nepal should not accept loans to advance any large infrastructure project under current circumstances."
Former Minister for Industry, Commerce and Supplies, Raj Kishore Yadav, who is also chairperson, International Relations and Tourism Committee, House of Representatives citing the example of Pokhara International Airport said that Nepal must consider some serious concerns, such as debt sustainability, lack of transparency, and geopolitical implications of the BRI-funded projects.
He said, "Transparent discussions on major foreign policy choices constitute a fundamental aspect of democracy, but neither the MoU nor the Implementation Plan of the BRI has been discussed in the parliament and civil society platforms.
Nepal should not sign the implementation plan without proper and transparent discussions."
Former Ambassador Vijay Kant Karna said, "Instead of signing a separate implementation plan, Nepal should negotiate on specific projects under the initiative."
CESIF's Research Director, Ajaya Bhadra Khanal, said, "The BRI Implementation Plan is not just an infrastructure development plan but a comprehensive strategic framework, negotiating which must involve a detailed assessment of their social, political, economic, and strategic consequences for Nepal."
Meanwhile, Govinda Raj Pokharel, former vice chairperson of the National Planning Commission of Nepal, emphasised that Nepal's top priority should be securing a trade route with China, which is "one of the most important national priorities but is often overlooked in negotiations, and it significantly undermines our ability to negotiate effectively."
Bishnu Rijal, Central Committee member of CPN-UML, stressed the necessity of external borrowing for Nepal to meet its growth targets because Nepal cannot sustain major projects with internal resources alone.
However, Pokharel argued that Nepal can take loans only for projects with high debt sustainability and rate of return.
Rijal also highlighted the historical ties between Nepali and Chinese communists and dispelled concerns about potential policy infiltrations, arguing that these relationships do not compromise Nepal's policy-making autonomy.
Foreign policy expert, Madhuraman Acharya,, characterised BRI in Nepal as a 'classic case of how not to negotiate, as it featured negotiation under duress, top-down negotiations, and politicisation.'
He further said, "The BRI Implementation Plan is essentially an explanation or formalisation of the 'strategic partnership' between Nepal and China, agreed upon during Xi Jinping's Nepal visit in 2019.
Such a comprehensive agreement should not be signed in haste without negotiating on Nepal's national interests."