Fri Nov 29 23:30:00 UTC 2024: ## Nepal’s PM Oli Faces Tightrope Walk on China Visit Amidst BRI Debate

**KATHMANDU, Nepal – November 30, 2024** – Nepalese Prime Minister K.P. Sharma Oli’s upcoming visit to China is fraught with tension, primarily due to a heated debate surrounding the Belt and Road Initiative (BRI). While Oli’s Communist Party of Nepal (CPN-UML) sees the visit as an opportunity to advance the BRI implementation plan, his coalition partner, the Nepali Congress (NC), harbors significant reservations, citing concerns about potential debt traps.

Nepal joined the BRI in 2017, initially proposing 35 projects, later reduced to nine. However, none have commenced, and funding mechanisms remain unclear. While the BRI is widely perceived in Nepal as a loan-based infrastructure initiative, experts like Ajaya Bhadra Khanal argue that it represents a broader Chinese strategic vision for economic integration and global connectivity.

The Chinese ambassador’s labeling of the Pokhara International Airport, a pre-BRI project funded by a $26 billion Chinese loan, as a BRI project highlights Beijing’s expansive interpretation of the initiative. The airport, facing operational challenges, adds to Nepal’s debt concerns. Oli is reportedly seeking a loan waiver or conversion to a grant, raising questions about Nepal’s debt repayment capacity.

Nepal’s public debt-to-GDP ratio, hovering around 44%, further fuels the NC’s caution against additional loans. Opposition to the BRI stems from concerns about increased Chinese leverage, mirroring anxieties shared by India and the United States, who are wary of growing Chinese influence in the region.

Oli’s perceived pro-China stance, stemming from past deals and his confrontational approach towards India, complicates the situation. Analysts suggest his visit should prioritize securing goodwill from China while maintaining ties with India, a delicate balancing act made more challenging by his strained relations with New Delhi. Oli has attempted to alleviate concerns by stating no new loan agreements will be signed during his visit and by renaming the BRI agreement to a “framework for cooperation”.

The internal divisions within the ruling coalition underscore the high stakes involved. Analysts urge Nepali leaders to prioritize national interests over domestic politics, advising Oli to navigate geopolitical and domestic complexities carefully. The outcome of Oli’s visit will significantly impact Nepal’s future trajectory.

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