PM Oli Denies Loan Agreement with China During Official Visit

Prime Minister KP Sharma Oli clarified there was no loan agreement with China during his recent four-day official visit, reaffirming Nepal’s stance on financial independence. Speaking to media upon his return at Tribhuvan International Airport on Thursday, Oli emphasized that all commitments under the Belt and Road Initiative (BRI) made during the visit are grants, not loans.

“There was no discussion of taking loans. I had stated this clearly before the visit, and I reiterate it now. The projects discussed under BRI will have separate agreements focusing on implementation, but the current commitments involve grants only,” PM Oli said, urging an end to repeated speculation about Nepal incurring Chinese debt.

During the visit, talks centered on various BRI-linked infrastructure projects, though no financial borrowing arrangements were made. Oli also confirmed that discussions regarding the Pokhara International Airport did not feature in the bilateral talks with Chinese officials.

PM Oli also announced a leadership transfer agreement, stating he would hand over governance to Nepali Congress President Sher Bahadur Deuba in 18 months. According to the arrangement, Deuba will lead the government for 1.5 years and oversee elections in cooperation with all political parties.

“Our agreement is to lead until elections are held. Each party will strive for a majority; if no single majority emerges, a coalition government will follow,” Oli explained.

This visit marked an important moment for Nepal’s international partnerships, particularly within the framework of the BRI, as the country navigates its developmental goals while maintaining fiscal prudence.