Leaders of ruling Nepali Congress and CPN (UML) are making efforts to iron out differences after the two parties were divided over signing the implementation of China's Belt and Road Initiative (BRI) project.
Prime Minister KP Sharma Oli is leaving for China to sign the BRI implementation agreement in the first week of December. However, ruling Nepali Congress is not in favor of signing it.
Nepali Congress has been stating that Nepal should accept only grant-based projects while avoiding concessional loans under the BRI.
To seek a mid-way solution, Prime Minister has assigned his Chief Economic Advisor Dr Yubaraj Khatiwada to hold talks with Nepali Congress. Similarly, the NC President Sher Bahadur Deuba has picked General Secretary Gagan Thapa to hold a negotiation with UML.
Prime Minister Oli has floated a proposal for securing concessional loans, an NC leader said. However, it will not impact a change in the government, he said.
"The Prime Minister has floated a proposal for securing concessional loans. The high-level task-force is dwelling on it," said the NC leader, "No decisions will be made that could destabilize the government. An agreement will be reached between NC and UML."
Once NC and UML reach consensus, Foreign Minister Dr. Arzu Rana and Finance Minister Bishnu Paudel will prepare a proposal and hand it over to Prime Minister Oli, said he.
The Chinese side has proposed December 2-6 as the date for Prime Minister Oli's China visit. However, it is yet to be officially announced.
Prime Minister Oli had tried to reach a consensus on this issue in a meeting with NC leaders including President Sher Bahadur Deuba on Monday and Tuesday, but to no avail.
General Secretary Gagan Thapa, Foreign Minister Dr Arzu Rana, Finance Minister Bishnu Paudel and Prime Minister's Chief Political Advisor Bishnu Rimal were present in the meeting held in Baluwatar.
During the meeting, Prime Minister Oli urged NC leaders to adopt a more flexible stance on the BRI. In response, Deuba said, "We are already burdened by debt, let's prioritize grant-based BRI projects to avoid increasing our financial liabilities."
A UML leader said efforts are being made to iron out differences.
In 2017, then Foreign Minister Dr Prakash Sharan Mahat had signed the BRI agreement. CPN (Maoist Center)'s Chairman Pushpa Kamal Dahal 'Prachanda' was the prime minister then.
Standing Committee member Rajendra Gautam, who is also the head of the UML's publicity department, says that Nepal urgently needs a budget for development.
"Our immediate priority is to decide whether to accept foreign aid for development projects," Gautam said, "If we do, we must determine the most appropriate form of assistance. There is no option to avoiding it."
However, NC General Secretary Bishwa Prakash Sharma argues that the Pokhara Airport is an example of how taking a loan can be harmful.
"We built the Pokhara Airport with a costly loan," Sharma said, "If China were to include it in the BRI and convert it into a grant that would be beneficial. Ultimately, we want to avoid excessive debt that could hinder our nation's progress."
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