PM faces tough questions on foreign policy

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.