kathmandu: Nepal’s Prime Minister KP Oli may visit China in the first week of December. Preparations for this tour will start after Tihar festival. The proposed date of Oli’s visit is believed to be December 2 to 5, although its official confirmation is yet to be done. KP Oli may demand loan concession during his visit to Beijing. Nepal is facing a lot of trouble, especially regarding the loan of China’s Pokhara Airport. According to the report of Kathmandu Post, PM Modi has discussed his upcoming visit to China with Foreign Minister Arzoo. Arzoo has said that there has been no official confirmation from the Chinese side about the visit, but it is likely to be confirmed soon. Nepal’s Prime Minister’s Office is in talks with the Chinese Foreign Ministry for this visit.
The purpose of the visit is to visit Pokhara Airport!
According to Nepali officials, Prime Minister Oli will meet with Chinese President Xi Jinping and Chinese PM Li Qiang in Beijing. It is believed that the main agenda of Oli’s visit is to convert the loan taken for Pokhara International Airport into a grant. If China converts the loan given for Pokhara International Airport into a grant, then the Nepal government will not have to pay interest.
A joint secretary of the Ministry of External Affairs said that during the visit, Nepal will seek waiver of the loan taken from China’s Exim Bank for the construction of Pokhara International Airport. Nepal has taken a loan of 1,378.74 million yuan (25.88 billion rupees) from China Exim Bank for the construction of the airport. Pokhara Airport is in loss due to failure to operate international flights and has failed to repay the loan.
Pokhara Airport has not seen any international flights since its opening on January 1, 2023, except a few chartered Chinese flights. An agreement for this airport was signed between Nepal and China on 21 March 2016. The Civil Aviation Authority of Nepal has to repay the loan amount by 2036. It does not seem possible to repay the loan as the loans have not started. In such a situation, Nepalese officials are requesting China to convert the loan into a grant due to the financial challenges of the airport.
Interview between Time.news Editor and Nepal Expert Dr. Anisha Thapa
Time.news Editor: Good morning, Dr. Thapa. Thank you for joining us today to discuss the anticipated visit of Nepal’s Prime Minister KP Oli to China. This is a significant event for Nepal, and we appreciate your insights.
Dr. Thapa: Good morning! I’m glad to be here and discuss this important topic.
Time.news Editor: Let’s start with the timing of the visit. It’s reported that KP Oli may travel to China from December 2 to 5, right after the Tihar festival. Why is this timing particularly strategic for Nepal?
Dr. Thapa: The timing is quite strategic for several reasons. First, Tihar is one of the major festivals in Nepal, symbolizing prosperity and the start of new endeavors. After a festive break, it sets a positive tone for political discussions. Additionally, December is a crucial time for both countries to evaluate their ongoing projects and explore further collaborations, especially given the ongoing challenges with the Pokhara Airport loan.
Time.news Editor: Speaking of the Pokhara Airport, what are the current challenges Nepal faces regarding this project, and how significant is this issue for KP Oli during his visit?
Dr. Thapa: The Pokhara Airport project has been a point of contention due to financial constraints. Nepal is facing severe economic challenges, and there’s a pressing need for loan concessions from China. For KP Oli, securing a favorable deal during his visit is crucial not just for this project, but to bolster public confidence in his government’s ability to handle international partnerships and domestic economic issues.
Time.news Editor: It seems like the economic aspect of this visit is quite critical. However, there’s been mention that the Chinese side has not yet confirmed this visit. How does uncertainty in diplomatic relations potentially impact Nepal’s approach?
Dr. Thapa: Uncertainty can create a delicate situation for Nepal. Without official confirmation from China, KP Oli’s administration may have to manage expectations at home while preparing for a trip that could be uncertain in outcome. This can affect public perception and political stability back home, especially if the economic demands are not met satisfactorily.
Time.news Editor: There’s also an indication that PM Modi has discussed this trip with his Foreign Minister, which signals that India is closely observing Nepal’s relations with China. What implications does this have for regional dynamics?
Dr. Thapa: Absolutely, the India-Nepal-China triangle is very sensitive. India has historically had strong ties with Nepal, and any strengthening of China’s influence may raise concerns in New Delhi. Modi’s discussions may suggest India is preparing to navigate any shifts in Nepal’s allegiance. It points to a balancing act that Nepal must maintain between these two large neighbors, ensuring its sovereignty while reaping economic benefits.
Time.news Editor: Lastly, if KP Oli successfully secures loan concessions during this visit, what could be the long-term effects on Nepal’s economy and its relationship with China?
Dr. Thapa: If he is successful, it could lay the foundation for increased Chinese investment in key infrastructure projects, which could provide much-needed infrastructure for Nepal’s development. However, it may also lead to greater economic dependence on China. The long-term effects will heavily depend on how the government manages these loans and the resulting development. Stronger ties may also shift the balance of regional power dynamics as Nepal increasingly becomes a player in Sino-Indian relations.
Time.news Editor: Thank you, Dr. Thapa, for your comprehensive insights. As we close, what should we watch for in the coming weeks leading up to this potential visit?
Dr. Thapa: Keep an eye on official communications from both governments and any announcements regarding the terms of the discussions. The domestic response in Nepal will also be critical—how the public perceives this visit and its outcomes will shape KP Oli’s political future. It’s a developing story that combines economic, political, and cultural aspects.
Time.news Editor: Thank you again for your thoughts, Dr. Thapa. We look forward to following this story closely.
Dr. Thapa: Thank you for having me!