Nepal’s Prime Minister Pushpa Kamal Dahal ‘Prachanda’ approved a deal to connect Nepal with China by rail under Beijing’s ambitious Belt and Road Initiative (BRI), just a day before he lost a vote of confidence in Parliament. The decision, while carrying more operational than political significance, signifies Nepal’s participation in Chinese President Xi Jinping’s multi-billion-dollar infrastructure project. The move comes as Nepal faces political uncertainty with Prime Minister ‘Prachanda’ losing the confidence vote, potentially paving the way for a new coalition government led by former Prime Minister K P Sharma Oli.
According to the MyRepublica news portal, citing government sources, the Cabinet meeting held on Thursday approved the ‘Strengthening the Development Cooperation in Building the Trans-Himalayan Multidimensional Connectivity Network’ agreement between Nepal and China. Communication Minister and government spokesperson Rekha Sharma confirmed the decision. However, a minister downplayed the immediate impact, stating that the project’s implementation details and BRI modalities are still under consideration.
Following the confidence vote defeat, President Ram Chandra Paudel initiated consultations with constitutional and legal experts to navigate the political situation. He requested ‘Prachanda’ to remain as caretaker Prime Minister until a new government is formed. The political developments are likely to lead to a new coalition government with K P Sharma Oli at the helm.
The BRI has sparked global concerns over China’s debt diplomacy, with smaller countries facing unsustainable infrastructure projects funded by substantial loans. Sri Lanka’s Hambantota port, a BRI project, was leased to Beijing for 99 years in a debt-for-equity swap in 2017 after the country failed to repay the debt. India has also voiced concerns over the BRI’s $60 billion China-Pakistan Economic Corridor (CPEC) flagship project, which traverses the Pakistan-occupied Kashmir (PoK). The recent developments in Nepal’s political landscape and its engagement with China’s BRI raise further questions about the project’s potential impact and the balance between economic development and political stability in the region.
