Oli visiting China to get a revised proposal on BRI Pact

Nepal’s Prime Minister KP Sharma Oli has embarked on a significant five-day visit to China, to present a revised memorandum of understanding (MoU) concerning BRI implementation.

This comes amid ongoing discussions regarding the Belt and Road Initiative (BRI) though Beijing has generally remained silent on a revised proposal for the BRI pact that Nepal is insisting upon to finalize.

The revised proposal will be presented by Nepal’s Foreign Minister Arzu Rana to her Chinese counterpart, Wang Yi, for joint approval during Oli’s visit. If cleared , this agreement could reshape the nature of Nepal’s participation in the BRI.

Nepal has shifted its stance on how it wishes to engage with China’s BRI, now insisting that projects be funded through grants rather than loans.

This decision stems from concerns over rising debt liabilities associated with previous loans from China, which have become increasingly burdensome for Nepal.

The original implementation plan proposed by China has been significantly revised by a Nepali Task Force, which aims to focus on specific, manageable projects.As of now, Beijing has not publicly responded to Nepal’s new terms regarding the BRI.

Observers are keenly watching whether China will agree to these conditions, which mark a departure from its typical model of financing through loans and joint ventures.

This visit and the negotiations surrounding the BRI are critical not only for Nepal’s economic strategy but also for its geopolitical positioning in the region.

The shift to grants reflects Nepal’s desire to avoid the pitfalls of debt dependency that have plagued other countries involved in the BRI, such as Sri Lanka and Italy.

The outcome of these discussions may influence future infrastructure development in Nepal and its relationship with China moving forward.