PM KP Sharma Oli Asserts No Loan Agreements During Upcoming China Visit

Prime Minister KP Sharma Oli has clarified that no loan agreements will be signed during his upcoming official visit to China, which begins on December 2. Addressing concerns and speculations, PM Oli emphasized that the visit aims to strengthen Nepal-China ties and focus on implementing past agreements, rather than securing new financial commitments.

The announcement was made during a discussion held on Friday with former prime ministers and former foreign ministers. The dialogue aimed to gather insights ahead of the visit and to address the broader implications of Nepal’s relations with its northern neighbor.

BRI Not a Debt Trap, Says PM Oli

Dispelling rumors about Nepal falling into a “debt trap,” PM Oli reiterated that the Belt and Road Initiative (BRI) is not a loan project but a collaborative platform. “Whether or not to take loans under BRI is not the topic of dispute at present. We can take loans or grants from any country or agency based on national interest if the need arises,” he stated.

Oli further emphasized that his government would not compromise Nepal’s sovereignty and independence, regardless of international partnerships. “We prioritize the nation’s sovereignty, autonomy, and national interest above all else. The visit to China is aimed at fostering multi-dimensional mutual friendship, and it will be successful,” he remarked.

Focus Areas of the Visit

The Prime Minister highlighted the key objectives of his visit, which include,

Implementation of Past Agreements: Ensuring the effective execution of agreements and treaties previously signed with China.
Bilateral Cooperation: Expanding transmission lines, promoting exports of Nepali products to China, and enhancing infrastructure development under BRI.
Economic Growth: Leveraging Nepal’s cordial ties with China and India to drive economic progress.
“These discussions are focused on Nepal’s growth and development, and not on playing one country against another,” Oli said, addressing concerns about Nepal’s geopolitical balancing act.

Political Unity on Nepal-China Relations

The meeting sought to address media speculation about differences within Nepal’s ruling coalition regarding the China visit. Foreign Minister Dr. Arzu Rana Deuba reassured attendees that the agenda for the visit is being finalized with mutual agreement between the ruling Nepali Congress and CPN (UML).

“There is no internal dispute as projected by the media. The focus is on ensuring a clear, unified agenda for the Prime Minister’s visit,” she said.

Former Prime Minister Pushpa Kamal Dahal ‘Prachanda’ supported Oli’s approach, recounting his own decision to visit China first during his tenure. “I did not intend to play the ‘China card’ then, and I hope the Prime Minister also avoids such political maneuvers now,” he said, urging effective implementation of agreements signed last year during his tenure as PM.

Notable Attendees and Absences

The high-level discussion saw participation from several former prime ministers and foreign ministers, including Jhal Nath Khanal, Madhav Kumar Nepal, and Khilraj Regmi. Former Prime Minister and Nepali Congress President Sher Bahadur Deuba was notably absent, as he was away from Kathmandu.

Foreign policy veterans such as Narayan Kaji Shrestha, Bhesh Bahadur Thapa, and Dr. Prakash Chandra Lohani contributed their insights during the meeting, underscoring the importance of Nepal maintaining balanced and strategic relationships with both China and India.

Looking Beyond Geopolitical Cards

Oli’s comments reflect Nepal’s broader foreign policy strategy of balancing its relationships with China and India without succumbing to geopolitical pressures. “Nepal enjoys the same friendly relations with India as it does with China,” he said, emphasizing that his government’s actions are grounded in national interest and regional peace.

The upcoming visit is expected to further strengthen the foundation of Nepal-China relations, focusing on mutual benefits rather than contentious financial arrangements.

With a clear agenda aimed at fostering economic development and bilateral cooperation, PM Oli’s visit underscores Nepal’s commitment to maintaining its sovereignty and pursuing its development goals in a rapidly changing global landscape.