Nepal should be extra careful when accepting loans from China: Senior Economist | India is blooming

Kathmandu, Nepal: A veteran Nepalese economist says the Himalayan nation should be extremely careful when accepting loans from China.

“The Chinese side even insists that some projects be implemented based on Chinese criteria,” Bishwambhar Pyakuryal, a Nepalese economist, told Khabarhub.

“A country like Nepal should be extremely careful when accepting loans from China,” he said.

He made the remark when Chinese Foreign Minister Wang Yi is visiting Nepal.

Nepalese Foreign Minister Narayan Khadka and his visiting Chinese counterpart Wang Yi held delegation-level talks on Saturday, after which they witnessed the signing and exchange of nine agreements and memorandums of understanding.

According to the Ministry of Foreign Affairs, one of the agreements concerns a technical assistance program for the feasibility study of the cross-border railway with the help of China.

Another concerns economic and technical cooperation. Within the framework of economic and technical cooperation, China will increase its annual aid to Nepal from Rs 13 billion to Rs 15 billion and fund certain projects which will be mutually agreed between the two parties, the Kathmandu Post reported.

Another agreement is for cooperation on the China-Nepal Power Grid Interconnection Feasibility Study where China will finance the new alignment of the Ratamate-Rasuwagadhi-Kerung transmission line. Similarly, the two sides also signed a protocol on the safety and health conditions of exporting haylage (stored fodder) from Nepal to China.

Another agreement is to provide 98% duty-free treatment to Nepali products in China. The Chinese side has handed over the certificate of phase III of the Araniko highway maintenance project in Nepal.

The two parties also approved the minutes of the 7th meeting, held in January, on strengthening cooperation in the railway sector which took place in January 2022 in virtual mode.

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