Nepal Reaffirms No Loan Pact with China Amidst Revised BRI Agreement

Nepali Prime Minister KP Oli reiterated that no loan agreements were made with China while signing the revised Belt and Road Initiative pact. The agreement focuses on grant financing. Discussions on implementing nine BRI projects will occur separately, with flexibility in funding terms being a key consideration.

Nepali Prime Minister KP Sharma Oli has emphatically clarified that no loans have been agreed upon with China during the signing of the revised Belt and Road Initiative (BRI) pact. This affirmation was made upon his return to Tribhuvan International Airport after concluding a four-day visit to China.

Oli stated, "We discussed various projects under the BRI, but what we receive now from China is not a loan." He emphasized that each project will be talked over distinctly in future arrangements with Beijing, stressing that no loan agreements have been brokered.

The most notable amendment in the pact was the replacement of "aid financing" with "grant financing," creating a more favorable realm for Nepal by limiting perceptions of indebtedness and enhancing financial flexibility. This change came after deliberations between Nepali and Chinese officials who sidestepped loan-related funding propositions.

(With inputs from agencies.)