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This week, Prime Minister KP Oli was occupied in New York, attending various multilateral forums, delivering lectures and participating in bilateral meetings. Two significant engagements stood out: one with Indian Prime Minister Narendra Modi and another with senior US officials.

In a notable 30-minute meeting, the first between Oli and Modi since Nepal's new government was formed in July, the two leaders discussed bilateral relations. The meeting is expected to bolster Oli's political standing in Nepal, as there is a perception in Kathmandu that India has not fully supported his government. While Oli has yet to receive an official invitation to visit India, preparations are reportedly underway for a possible visit by Modi to Nepal.

During his appearances in New York, Prime Minister Oli addressed topics such as Nepal's transitional justice process, climate change impacts and sustainable development goals. He also met with Alize Albright, CEO of the Millennium Challenge Corporation (MCC), where both parties emphasized the importance of completing the MCC project to improve Nepal’s transmission lines and highways. Additionally, Oli held talks with USAID Administrator Samantha Power, focusing on Nepal's development efforts and the ongoing support from USAID.

In another significant development this week, Nepal and China resumed the joint military drill after a five-year hiatus. According to Chinese media, the exercises between the Nepali Army and China’s People’s Liberation Army are focused on skills such as rappelling, IED detection and disposal, checkpoint blockades, infiltration and armed rescue.

Also this week, Nepal Police moved forward with the report submitted by a parliamentary probe into the cases of cooperative deposit scams. A case has already been filed in the Chitwan District Court regarding the misappropriation of funds from various cooperatives. Chhabi Lal Joshi, former DIG of Nepal Police and one of the founders of Gorkha Media Network, was arrested and transferred to Pokhara for investigation. Reports suggest that Rastriya Swatantra Party (RSP) Chairman Rabi Lamichhane, who was also associated involved with Gorkha Media, may also face arrest for his alleged involvement in the misuse of cooperative funds. Lamichhane has called for public pressure to resist the potential arrest. 

On a more positive note, the International Monetary Fund (IMF) this week reported that Nepal's economy is gradually recovering. According to the IMF, “Credit growth is recovering while remaining appropriately below nominal GDP growth. Inflation continued to decelerate to around 3.6 percent mid-July, partially reflecting favorable commodity prices and weak demand. International reserves continued to rise, underpinned by robust remittances, recovering tourism, and still subdued imports.”

In political news, former president Bidya Devi Bhandari has made it clear she intends to re-enter politics, announcing that she hopes the CPN-UML will become a decisive force in the 2027 elections. Speaking at an event organized by the Madan Bhandari Foundation, Bhandari expressed her desire for UML to produce the next president and hinted at her own ambitions to return to power. UML insiders suggest that Oli may retire after the next election, paving the way for Bhandari to take a leadership role within the party.

This week, businessperson Durga Prasai was arrested following complaints accusing him of cybercrime. Prasai, known for his vocal criticism of current political leaders and for spreading unfounded claims on social media, has faced backlash despite his past close ties with Prime Minister Oli and CPN (Maoist Center) leader Pushpa Kamal Dahal. His supporters have protested his arrest, while police are preparing to file cybercrime charges. Prasai, now advocating for the restoration of the monarchy, appears to be raising his political profile.

In another story this week, CPN (Maoist Center) Chair Dahal expressed concerns over the proposed constitutional amendment, warning that while he is not opposed to the idea, it must be approached with caution to avoid triggering instability. “Amending the constitution could be like opening Pandora’s box,” Dahal said at a program, emphasizing the need for careful deliberation.

Lastly, while there was widespread celebration after Parliament passed the bill on the Truth and Reconciliation Commission, there has been little progress in making appointments to the transitional justice mechanisms. The process is expected to gain momentum once Prime Minister Oli returns from the UN summit.

That’s all for this week. Have a great weekend! 

Two weeks have elapsed since Prime Minister KP Sharma Oli assumed office, backed decisively by the largest party in the House of Representatives, the Nepali Congress (NC). While it is customary to reserve judgment on a new government’s performance for at least 100 days, vigilant oversight remains essential from the outset.

During this period, Prime Minister Oli has focused on assembling his team, securing a vote of confidence from the Parliament, and receiving briefings from various government agencies. He has appointed key aides, including former Finance Minister Yubaraj Khatiwada as his economic advisor, though appointment of press and foreign affairs advisors remain pending. A close examination of Oli’s first fortnight in office reveals a promising trajectory.

Breaking from tradition, Prime Minister Oli has opted not to prepare a Common Minimum Program (CMP) or announce populist agendas to capture public attention. This contrasts with his previous tenures, as he now seems intent on allowing his administration's results to speak for themselves. Notably, the Nepal Rastra Bank has introduced a new monetary policy, eliciting mixed reactions but holding potential as a remedy for the nation’s economic challenges. Despite a significant downturn in the stock market following the new government’s formation, there is optimism for progress in the real estate sector. The private sector, a crucial driver of growth, is adopting a cautious “wait and see” stance regarding the policy’s efficacy.

Progress is also evident in addressing the contentious issues surrounding the Truth and Reconciliation Commission. A tripartite task force comprising the NC, UML, and the CPN (Maoist Center) is nearing a resolution of longstanding issues. If they reach a consensus, it will be a great achievement, given its two-decade history fraught with delays and disagreements. The Maoists, despite their recent ejection from power, are cooperating on TRC matters.

Unlike previous administrations, the Oli-led government has refrained from transferring government secretaries, as well as issuance of extensive, often unimplemented directives. The frequent transfer of secretaries has historically impeded service delivery. Additionally, the government is expediting ambassadorial appointments in key countries following the recall of ambassadors by the previous administration.

However, public scrutiny has emerged in response to some decisions by the UML and NC. The government's transfer of senior police officials has been poorly received, attracting criticism from opposition parties. The NC and UML are amicably resolving disputes over provincial government formations, marking a significant positive development. However, the selection of ministers at the provincial level has faced backlash. 

The administration has also contended with significant tragedies, including the Saurya plane crash and a fatal bus accident in Chitwan, which demanded urgent governmental response. Furthermore, the government had to rescue Nepali students in Bangladesh amid prolonged protests against the quota system in government jobs.

Despite these challenges, the government’s initial performance indicates a positive direction. It has not pursued ambitious yet unfeasible agendas, focusing instead on substantive progress. Criticism from ruling and opposition party leaders has been minimal. Favorable developments in the stock market, monetary policy, real estate sector, and declining inflation have created a conducive environment for the government.

While early indications are promising, numerous challenges remain. The government and political parties must abandon ineffective practices of the past. Prime ministers and ministers, in particular, should prioritize official duties over ceremonial engagements and project inaugurations to ensure continued progress.

Soon after stepping down from power, CPN (Maoist Center) Chair Pushpa Kamal Dahal has initiated efforts to engage with fringe communist parties, particularly former Maoist leaders, to strengthen his position in national politics.

It has been observed that Dahal tends to reach out to his former Maoist colleagues, who have formed splinter groups, especially after the major split in the Maoist party in 2012 when senior leader Mohan Baidya established a separate party due to serious ideological differences with Dahal. A few months ago, while still in power, Dahal formed the Samajbadi Manch (Socialist Front), a loose coalition of fringe parties within the government. However, this front remained inactive as Dahal did not perceive any immediate threat to his government after aligning with the CPN-UML four months ago. 

On Tuesday, Dahal convened a meeting that included CPN (Maoist Center), CPN (Unified Socialist), Nepal Communist Party, and Samajbadi Forum. Of these, only the Maoist party led by Dahal and the CPN (Unified Socialist) led by Madhav Kumar Nepal have a presence in the national parliament. The Nepal-led party had supported Dahal during his vote of confidence in Parliament on Friday. The meeting of the Socialist Front has labeled the NC-UML coalition as opaque and unnatural. The four parties view the NC and UML’s plans to amend the constitution with suspicion, fearing that these two parties might regress from the progressive provisions of the 2015 constitution. Consequently, the four parties have formed a task force to thoroughly study the policies and activities of the newly-formed coalition.

For the first time in 10 years, the Maoist party finds itself in the opposition bench, a position it last occupied in 2014 when the NC and UML formed an alliance to deliver the constitution. Since then, the Maoist party managed to remain in power despite multiple major and minor splits. After the promulgation of the new constitution in 2015, Dahal’s long-time comrade Baburam Bhattarai left the party to form a separate faction. Bhattarai has been a vocal critic of Dahal, unlike other Maoist splinter groups, which still regard Dahal as their leader.

Despite maintaining moderate strength through electoral alliances with the NC and UML, the Maoist party’s influence is waning. Party leaders fear that contesting elections without alliances could further weaken their position in the national parliament.

Numerous Maoist party leaders and cadres, who were excluded from benefits during Dahal’s tenure, believe it is crucial for Dahal to reflect on his past decade in power and work toward strengthening the party organization. The Maoist party is steadily losing public support and organizational strength. Officially, Dahal will not become the main opposition leader as he lacks the requisite 65 seats. However, as the third-largest party in Parliament, the Maoists remain a significant opposition force, supported by the fourth-largest party, Rastriya Swatantra Party, which holds 21 seats in Parliament, alongside other fringe parties.

Dahal, according to close associates, will strive to consolidate his power by uniting various Maoist factions, although a formal unification is unlikely. The potential unification could be influenced by shared concerns over war-era human rights violations if the NC and UML join forces. Whether the new government will prioritize transitional justice issues remains uncertain, but these issues could serve to unite the Maoist factions. 

Additionally, Dahal may reach out to political outfits advocating identity politics. As the NC and UML aim to amend the constitution to alter the current electoral system, Dahal and other identity-based groups are likely to vehemently oppose any such change. Consequently, Dahal is expected to lead a front that staunchly resists any attempt to amend the constitution.

Arzu Rana Deuba, a Central Working Committee member of the Nepali Congress, has been appointed the Minister of Foreign Affairs in the KP Sharma Oli-led government. This marks her first ministerial role, and she has undertaken a portfolio of significant importance amidst the rapidly evolving regional and international geopolitical landscape.

Although this is her first ministerial position, her extensive experience over the past three decades in observing state functions—partly through her role as the spouse of five-time Prime Minister Sher Bahadur Deuba—affords her a unique advantage. She has been privy to high-level negotiations and has cultivated valuable personal connections, positioning her favorably compared to her predecessors. 

Coming from a well-educated family, Deuba also possesses a strong command of English, which is crucial for effective communication in bilateral talks and negotiations. Without relying on a translator, she can clearly and articulately present Nepal’s stance on both regional and international platforms. 

How she fares in her job is yet to be seen, especially in today’s volatile geopolitical climate. 

One of Deuba’s foremost challenges, says foreign policy expert Bijaya Kanta Karna, will be aligning the growing interests of major powers with Nepal’s national interests. 

Navigating the dynamics between the United States and China, as well as India and China in South Asia, is a significant task for the new government. Karna suggests that Nepal should leverage this complex situation to attract more investment and technology, thereby garnering international attention in Nepal’s favor.

The government must maintain balanced and cordial relations with all major powers, resisting pressures to align too closely with any one nation. Since the international media often frames new governments of Nepal as being “pro-China” or “pro-India,” influencing global perceptions, it is crucial for the Oli government to craft and project its own narrative.

Binoj Basnyat, a former major general of Nepal Army and political analyst, says the change in the coalition government and the alliance of the main two constitutional forces to form a national government reflect underlying constitutional weaknesses, political instability, institutional corruption, politicization of institutions, and erratic foreign policy behavior. He adds this situation arose as Nepal underwent significant transformation since 2008, while also facing the emergence of Cold War 2.0, a new global order marked by complex interactions of conflict, cooperation and competition among geopolitical rivals.

Basnyat suggests Nepal’s foreign policy should pursue three key objectives. First, domestic measures to ensure meritocracy, realism and honesty as the foundation for implementing national foreign policy within the framework of national interests. Second, economic diplomacy, which includes programs, policies or activities aimed at improving the economic well-being and quality of life for the community. This involves addressing geopolitical aspirations by accepting geographic realities, national necessities and democratic values. Third, upholding the principles of Panchasheel to protect freedom of action and maintain equilibrium with its competing partners and immediate neighbors, China and India, and global rivals, China and the US. 

Nepal’s strategic endeavors, Basnyat says, should follow a visionary approach, encompassing immediate, short-term and long-term development planning within national strategic policies to address financial arrangements. This will help avoid geopolitical uncertainty and prevent falling into strategic traps linked to political and economic conditions imposed by global visions.

As for foreign policy, he adds Nepal should strive for neutrality and a non-alignment policy to foster economic development, following the theme of ‘Yam between two boulders’ within a uniquely Nepali political and governance system.

On specific issues, Prime Minister Oli and the Nepali Congress (NC) have differing views, particularly on China’s Belt and Road Initiative (BRI). Following an agreement with Oli’s CPN-UML, the NC officially decided against taking loans under the BRI, preferring terms similar to those offered by the World Bank and the Asian Development Bank. Conversely, UML leaders advocate moving forward with BRI projects on concessional loans. 

NC and UML are also not on the same page on some issues related to India. Foreign Minister Deuba, like her predecessors, is likely to face pressure from the opposition and other parties to address the ongoing border dispute with India. However, during former Prime Minister Pushpa Kamal Dahal’s visit to India last year, both nations agreed to allow more time for diplomatic mechanisms to address this issue.

To address the pressing economic challenges, particularly stagnation and job creation, the new government requires the support of major powers and long-standing development partners to attract investment. International investment in Nepal has declined in recent years, while external debt has increased. To reverse this trend, Deuba could play a key role here for setting up effective coordination among the Ministry of Foreign Affairs, the Ministry of Finance, and the Office of the Prime Minister and the Council of Ministers.

The NC-UML coalition has yet to finalize the government’s policies and programs, leaving its foreign policy orientation and priorities somewhat ambiguous. Nevertheless, significant shifts in foreign policy are unlikely. Effective foreign policy will depend on proper coordination and communication between the Ministry of Foreign Affairs and the Office of the Prime Minister. Historical precedent shows that conflicts can arise when the Prime Minister and Foreign Minister hail from different parties.

The new government is expected to put economic diplomacy at the center of its engagement with major powers, setting aside other differences. Economic recovery and infrastructure development are key priorities for Nepal. Both coalition parties agree that Nepal should not align with any single country but should engage major powers on economic issues rather than geopolitical tensions. 

The new government’s foreign policy will likely be driven by domestic agendas, such as economic recovery, job creation and securing funding for infrastructure development. In order to accomplish these agendas, Prime Minister Oli must avoid actions that could undermine trust with major powers and other development partners.

Throughout Monday, the media and political circles were on edge due to reports of a possible change of government. Even top leaders of major parties were struggling to uncover what had transpired during recent meetings between Sher Bahadur Deuba, leader of the main opposition Nepali Congress, and KP Sharma Oli, CPN-UML chairman and a major coalition partner in the Pushpa Kamal Dahal-led government. 

The secrecy maintained by Deuba and Oli regarding the content of their meetings has further fuelled the rumor that NC is attempting to remove Dahal from power by forming a new alliance with UML. 

Despite the rapid developments on Monday and chatter on social media, there were no clear indications of any top-level political maneuvers. 

But according to multiple sources, it is evident that Congress has indeed offered the premiership to Oli, who was ousted from power in 2021 following a Supreme Court order. Oli and his party may take some time to decide on the offer from NC, the largest party in the 275-member House of Representatives. 

After a long gap, Deuba visited Oli's residence in Balkot this Saturday, following two rounds of talks in Kathmandu. There are reports that Deuba and Oli have agreed to form a national consensus government to address current issues such as constitutional implementation and economic challenges. Oli has repeatedly stated that the country cannot progress in its current state and is consulting within his party about the NC’s offer.

Oli is reportedly dissatisfied with the government's performance, including the recently passed budget, which he claims was introduced without coalition consultation. This makes it difficult for him to make an immediate decision, especially since his closest rival, NC, has offered him the prime ministerial position.

In a meeting with his party’s top leaders on Monday, Deuba mentioned his cordial relationship with Oli but refrained from commenting further on their ongoing talks. Deuba did not share concrete details with his party colleagues. On the same day, Prime Minister Dahal and Oli held a lengthy discussion, but neither side disclosed the content of their meetings. When asked about the possibility of becoming prime minister, Oli told journalists that he might not assume the role this year.

Amid discussions of an NC-UML alliance, Prime Minister Dahal addressed the Cabinet, assuring them that the current government would continue for a long time. Government Spokesperson Rekha Sharma stated, “The prime minister briefed that media reports regarding a new government are untrue and there have been no talks about forming a national unity government.”

Sources indicate that Oli favors forming a national unity government rather than a coalition of just two parties. The key agenda for such a government would be to amend the constitution, change the current electoral system, and remove secularism from the constitution.

Over the past two weeks, former president Bidya Devi Bhandari has reentered the spotlight of national politics for two main reasons.

First, Bhandari attended a CPN-UML function in Kathmandu for the first time since her retirement, addressing an audience of five thousand UML women cadres. Second, media reports suggested she renewed her UML party membership, which she had relinquished after becoming president in 2015. However, neither the UML nor Bhandari has confirmed this.

Following these reports, some lawmakers questioned whether Bhandari could continue receiving state benefits if she renewed her party membership. Nonetheless, since her retirement, she has chosen to reside in her private home, declining the government's offer of official residence.

Tika Dhakal, Bhandari’s former advisor, refuted the media claims, calling them false and aimed at tarnishing her image. Dhakal emphasized that Bhandari does not need formal membership to participate in party activities and would renew her membership openly and transparently if she chose to do so—and with significant party support.

UML leaders close to Bhandari suggest her return to active politics is possible and not prohibited by the Constitution. They believe she would be a unifying figure within the party and a prominent national leader due to her clean image and widespread acceptability.

Speculations about Bhandari’s political comeback began even before her retirement. In a notable instance, during an informal gathering before her departure from Sheetal Niwas, leaders like UML Chairman KP Sharma Oli and then Prime Minister Sher Bahadur Deuba and CPN (Maoist Center) Chairman Pushpa Kamal Dahal asked her about potential return. Bhandari, however, avoided committing to such plans, leaving the decision open.

Political circles continue to buzz about Bhandari’s intentions. Some argue she leads an informal faction within the UML against Oli, although both she and Oli have remained publicly silent on this matter. It is believed that any political move by Bhandari would aim for consensus rather than conflict with Oli.

Second-tier UML leaders, such as Bishnu Pokhrel, Ishwor Pokhrel, and Shankar Pokhrel, are vying for leadership but might support Bhandari as a unifying figure. Given her legacy and broad acceptance, party leaders see her as a strong candidate for leading the party after Oli.

Bhandari has not ruled out a return to politics. In an interview with this journalist  in November last year, she said: “I have not made a decision regarding a return to active politics at the moment.”  As for Oli’s potential successor, the former president said it was “an internal matter” of the party.

“It is premature to discuss leadership after Oli, as we still have a long way to go before the convention,” said Bhandari, suggesting the UML members to focus on strengthening the party rather than hankering for power. 

Based on Bhandari’s statements and recent actions, it appears she might re-engage in politics by the next UML convention or before the 2027 elections. UML leaders believe she supports the unification of leftist alliances, which could see Oli as prime minister, Dahal as president, and Bhandari leading the party if a coalition is formed after the 2027 elections.

The House of Representatives on Tuesday witnessed a heated debate as cross-party lawmakers raised multiple pressing issues that need immediate government attention. Foreign Minister Narayan Kaji Shrestha was absent, so Prime Minister Pushpa Kamal Dahal responded to the questions. 

One key topic was China’s Belt and Road Initiative (BRI). PM Dahal reminded lawmakers that the BRI Memorandum of Understanding (MoU) was signed in 2017 during his second term as prime minister.

In Sept 2023, during Dahal’s visit to China, the two sides held discussions on finalizing the BRI implementation plan. Nine months later, Dahal informed Parliament that the implementation plan is in its final stages and will be signed soon, although he did not specify the dates. Lawmakers expressed concerns about the potential debt burden on Nepal if loans are taken to finance infrastructure projects under the BRI.

PM Dahal reassured lawmakers that Nepal prefers grants over loans and, if loans are taken, they would be concessional to avoid a ‘debt trap’. He stated, “I have clearly told the Chinese side that Nepal cannot afford high-interest rates and prefers the same interest rates as the World Bank and Asian Development Bank.” 

Nepali Congress lawmaker Ram Hari Khatiwada requested that grants be prioritized over soft loans, emphasizing that any loan interest rates should not exceed 1 to 1.5 percent. Transparency regarding the interest rates of BRI loans is often lacking, with rates reportedly at two percent or higher.

Lawmaker Shishir Khanal from the Rastriya Swatantra Party argued that there should be parliamentary deliberations about the BRI agreements with China. Due to the lack of debate in Parliament, negative perceptions of the BRI have arisen outside of it, Khanal said.  While the two countries are negotiating the implementation plan, the government has yet to publicize it.

Lawmakers also questioned the PM about issues relating to India. Despite the report of the Eminent Persons Group (EPG) being almost inactive, PM Dahal assured lawmakers that efforts are underway to submit the EPG report to both sides. He acknowledged that he did not bring up the issue during his visit to India last year to avoid straining bilateral relations. Lawmakers also inquired about the ongoing map dispute with India and the progress made in diplomatic negotiations. PM Dahal stated, “Efforts are underway to resolve this issue through bilateral mechanisms formed to address boundary disputes.”

The issue of Nepalis trapped in the Russia-Ukraine war was prominently raised, but PM Dahal did not provide a clear answer about the government’s efforts. Unofficial figures indicate that around three dozen Nepalis who joined the Russian army have died, and hundreds are trapped in the war zone. The PM mentioned that both sides are in constant talks to resolve the problem and that a committee has been formed to provide recommendations on managing the movement of people between Nepal and Russia.

Recently, the government has faced criticism for recalling ambassadors before completion of their terms and violation of its own recruitment standards for new ambassadors. PM Dahal admitted these shortcomings and pledged that future appointments would be merit-based and better managed.

PM Dahal also faced questions about efforts to convene the SAARC summit, stalled since 2014. He attributed the delay to souring relations between India and Pakistan but did not mention the impact of recent developments in Afghanistan. He stated, “I have clearly talked with Indian Minister for External Affairs S. Jaishankar about the need to organize the SAARC summit, but India has indicated there are complexities involved.” With Indian Prime Minister Narendra Modi taking office for a third consecutive term, fresh debates about the possibility of organizing the SAARC summit have emerged.

The PM also addressed questions related to Gorkha recruitment and the 1947 tripartite agreement among Nepal, India, and the UK. He emphasized the need to update the agreement in the changing context, based on national consensus. A section of Nepali politicians has long demanded the scrapping of the treaty.

China’s Belt and Road Initiative (BRI) has seen mixed progress in Nepal since the two countries signed the agreement in 2017. A common narrative suggests that no significant projects have been completed under the BRI framework, leading many foreign policy observers to conclude that China has not succeeded in expanding its influence in Kathmandu, largely due to implicit pressure from the West and India. 

Nevertheless, the implementation of BRI remains a top agenda item in interactions between representatives of the Communist Party of China and Nepal’s political parties, especially the communist ones, which have expressed dissatisfaction over the perceived slow progress.

From the Chinese perspective, several soft and hard projects launched in Nepal fall under the broader BRI framework. However, China is pushing for the implementation of more infrastructure projects, as globally, the BRI is perceived mainly as an infrastructure initiative. 

Beyond BRI, China’s reach and influence in Nepal have significantly expanded across various sectors—from education to security, from village to national levels, and from electric vehicles to airline companies. Recent interactions even include the judiciary and parliament, with notable exchanges of visits between officials from both countries.

In November last year, Nepal’s Chief Justice Bishowambhar Prasad Shrestha visited China, followed by a reciprocal visit this week by Liu Guixian, a senior justice of the Supreme People’s Court of China. Senior leaders from Nepal’s National Assembly and the Speaker of the House of Representatives have also visited China in recent years.

Recent examples of China-Nepal cooperation include Chinese Ambassador to Nepal Chen Song’s participation in multiple events. These events illustrate China’s diverse offerings to Nepal, such as organizing the first intra-party school Chinese pop dance competition involving students from 13 primary and secondary schools, and a cardiovascular screening program by specialists from Fuwai Yunnan Hospital, which provided screenings for 4,682 Nepali children diagnosed with congenital cardiovascular disease, offering them free treatment in China.

Additionally, China has resumed the China Higher Level Education Fair, halted for two decades, and Nepal’s colleges and universities are increasingly offering Chinese language courses. The number of scholarships for Nepali students to study in China has also increased, as has the participation of Nepali bureaucrats going to China for education. Beyond education and health, China is also interested in importing Nepali tea, and the two countries are working on petroleum product collaborations. These are just some instances where there is a long list of new areas of collaboration between the two countries. 

For a long time, Western and European countries have been expanding their influence in Nepal through non-governmental organizations. Now Chinese non-governmental organizations (NGOs) are also becoming more active in Nepal. The China Foundation for Rural Development (CFRD), for instance, has been working in the areas of health, education, and other social issues, particularly in the Tarai region. Recently, CFRD provided aid to fire-affected people in the Mahottari district but this is not the first time. CFRD has been providing support in Madhes region since 2015 and it continues to expand. 

China has developed networks and projects to engage with all segments of Nepali society, and Ambassador Song has been instrumental in enhancing bilateral engagement through active social media presence and interactions with media personnel.

Deputy Prime Minister and Minister for Foreign Affairs Narayan Kaji Shrestha has been a strong supporter of bilateral projects, frequently attending events organized by the Chinese Embassy and other Chinese-funded local organizations. Shrestha is notably the only minister in the Pushpa Kamal Dahal-led government, who has been consistently pushing for the signing of the BRI implementation plan, which remains pending.

As China aspires to engage more with Nepal, bilateral visits are expanding, with politicians from various levels visiting China. But it is noteworthy that visits by leaders from the Nepali Congress (NC) are fewer compared to those from communist parties. This could be due to fewer invitations from China or a lack of interest from senior NC leaders. Despite this, both Chinese and NC leaders acknowledge the historical role of bilateral relations, often referencing BP Koirala’s contributions from the 1960s.In summary, while progress on the BRI in Nepal may have been slow, overall Chinese engagement in the country has picked up speed, balancing hard and soft power. The Nepal-China border, which had been largely closed since 2015 and further impacted by Covid-19, has recently reopened, facilitating increased movement of people and goods. This week, the two countries are holding their 16th Secretary-level meeting to review the entire bilateral relationship. To measure China's influence in Nepal solely through the BRI lens is to overlook the broader picture.