K.P. Sharma Oli, the prime minister of Nepal, recently defended the country’s renewed Belt and Road Initiative (BRI) deal with China, claiming that it will greatly advance Nepal’s economic growth. Oli underlined that the agreements agreed, including a framework for BRI collaboration, are intended to improve Nepal-China relations and expedite infrastructure projects that have been blocked since the original BRI agreement was signed in 2017. This came after his four-day official visit to China.
Oli met with Chinese President Xi Jinping and other top officials during his tour, which was his first official trip outside of Nepal since assuming office and signaled a significant change in diplomatic objectives. They signed eleven agreements together, including trade and economic cooperation memorandums of understanding. Oli declined to sign any loan agreements on this trip, expressing a preference for grants and technical help over possible debt implications from Chinese loans.
Internally, Oli’s administration has been divided over how to finance the BRI, with some groups urging prudence when taking out loans because of Nepal’s unstable economic status. He does, however, think that the framework agreement would open the door for the implementation of urgently needed infrastructure projects, turning Nepal from a landlocked nation into one that is connected to the rest of the world. As a result of larger worries about the amount of national debt, the Nepali Congress party, a crucial coalition partner, has long resisted significant reliance on loans for such projects.
A strategic drive to strengthen economic links with China while managing the intricacies of internal political dynamics and external geopolitical influences, especially from neighboring India, is highlighted by Prime Minister Oli’s recent remarks and actions.
