Kathmandu: Nepal‘s Prime Minister KP Sharma Oli has recently visited China. This is vital too strengthen the relations between the two countries.The signing of Nepal-China agreements under the Belt and Road initiative (BRI) has further enhanced the closeness. But is this realy benefiting Nepal’s interests or is Prime Minister Oli pushing the country towards huge debt through tall promises? After becoming Prime Minister, he visited China instead of India. His decision may also impact the country’s politics, economy and relations with India. During his visit, PM Oli finalized the framework of BRI projects with China. Although this agreement is not new. Talks on this had started between China and Nepal since 2017. But it coudl not progress due to lack of political consensus in Nepal. Now the agreement has been reached, but concerns about increasing debt on Nepal have also come to the fore.Nepali Congress,a member of the alliance in the Oli government,has clearly said that they are not in favor of doing any project by taking loan from China.
The challenge of creating a balance between India and China
Lack of consensus in the alliance has emerged as a major problem. But apart from this,it is also important for Nepal to create a balance between India and China. India has been an old and strong ally of Nepal, but India’s concern about China is well known. Nepal’s pro-China steps may anger India. Pokhara Airport is an example of that.
Actually, China had given a loan of 216 million dollars to Nepal to build an international airport in Pokhara. This airport became operational last year, but till now it has not been able to benefit from international flights on a large scale. This is because India did not allow its airspace to be used for flights from this airport.
Oli government in trouble?
PM KP Sharma Oli’s government is already running with the support of alliance. In such a situation, his inclination towards China can create divisions in the government. Along with this, there is also a danger of angering India. The people and government of Nepal need to understand that China’s big promises also come with big risks. Debt-ridden projects and regional tensions may increase problems for Nepal.this move of Oli does not seem to be in the interest of Nepal right now.
How can Nepal effectively manage it’s debt while engaging with foreign investment under the Belt and Road Initiative?
Interview with Dr. Anisha Sharma, Geopolitical Analyst
Time.news Editor: Thank you for joining us today, dr. Sharma.Prime Minister KP Sharma Oli’s recent visit to China and the signing of Nepal-China agreements under the Belt and Road Initiative (BRI) have raised many questions.What do you think are the key implications of this visit for Nepal?
Dr. Sharma: Thank you for having me. Prime Minister Oli’s visit is indeed a significant moment for Nepal, especially given the historical context of its relationship with both India and China. By prioritizing China over India, Oli is signaling a potential shift in Nepal’s foreign policy. While the BRI agreements could bring much-needed infrastructure investment to Nepal, they also raise considerable concerns regarding increased debt.
Time.news Editor: Can you elaborate on the concerns around debt that have been voiced, especially by the Nepali Congress party?
Dr. Sharma: Absolutely.the Nepali Congress has expressed skepticism about taking on loans from China for ambitious projects. The worry is that the financial burden from these loans could lead to a debt trap, hindering Nepal’s economic growth. For instance, many see the Pokhara Airport project—largely funded by China—as a double-edged sword.While it signifies investment, the operational struggles due to India’s airspace restrictions reveal potential drawbacks.
Time.news Editor: It seems like there is a delicate balance to maintain between India and China. how do you foresee this affecting Nepal’s internal politics?
Dr. Sharma: The relationship with China may create rifts within the current ruling coalition, especially if there is a lack of consensus about moving forward with further Chinese projects. Nepal has traditionally leaned towards India,and any apparent pivot towards China could provoke pushback from political factions that still prioritize strong ties with New Delhi. This could lead to instability and disrupt governance if not managed carefully.
Time.news Editor: Speaking of governance, do you believe that the Oli government can navigate these geopolitical waters effectively? What challenges lie ahead?
Dr. Sharma: The Oli government is already operating under a precarious coalition. His inclination towards China may invite further scrutiny and dissent from coalition partners. Additionally,if India feels threatened by Nepal’s growing ties with China,it may respond in ways that could impact bilateral relationships negatively,further complicating Oli’s position. The challenge will be to balance Nepal’s economic needs with its historical alliances.
Time.news Editor: Given this complexity, what practical advice can you offer to Nepalese citizens regarding their country’s foreign relations?
Dr. Sharma: I would advise citizens to remain informed and engaged with the discourse on Nepal’s foreign affairs. Public debates surrounding these matters should ideally influence policy direction. It’s crucial that the government prioritizes clarity and includes diverse perspectives in decision-making. Citizens must advocate for prudent financial agreements that do not jeopardize Nepal’s economic sovereignty. Maintaining dialog with both India and China will be key to fostering stability and growth.
Time.news Editor: Thank you, Dr. sharma, for your insights on this pressing issue. The balance of power in Nepal’s foreign relations is indeed critical for its future growth.
dr. Sharma: Thank you for having me; it has been a pleasure to discuss these important issues regarding Nepal’s geopolitical landscape.