The week that was

Dear Readers,

This week has seen significant developments on both the domestic and international fronts that deserve your attention. 

Nepal and China hosted a foreign-secretary level meeting in Kathmandu to discuss bilateral issues. Although no major breakthroughs were achieved, Chinese Vice Foreign Minister Sun Weidong’s visit marked a significant diplomatic engagement. During his stay, he met with Nepal’s top leaders, including President Ram Chandra Paudel.

There were speculations that Nepal and China might sign a Belt and Road Initiative (BRI) implementation plan during this visit. However, this did not materialize. It is possible that progress could be made during Chinese Foreign Minister Wang Yi’s visit to Nepal, which is expected to take place very soon. China was keen on finalizing the agreement during Prime Minister Pushpa Kamal Dahal’s visit to Nepal last year. But Dahal was not interested.

Speaking in the Parliament, Prime Minister Dahal outlined Nepal’s position on BRI, which almost all major parties agree with. He said Nepal prefers grants over loans and, if loans are necessary, they should be concessional with interest rates not exceeding 1.5 percent. He also stated that Nepal seeks loans from China on terms similar to those from the World Bank and the Asian Development Bank. This sentiment mirrors the position of former Prime Minister Sher Bahadur Deuba during his discussion with Chinese Foreign Minister Wang Yi in 2022. To date, CPN-UML Chairperson and Prime Minister KP Sharma Oli has not publicly detailed his views on the BRI.

We have an in-depth analysis of Prime Minister Dahal’s parliamentary address under the heading ‘PM Faces Tough Questions in Parliament’. For more details, please visit our website.  A delegation led by CPN-UML leader Bishnu Rimal visited Beijing this week—latest in the series of Nepali leaders visiting China. China’s influence in Kathmandu has increased considerably in recent times. Our feature titled ‘China’s Growing Clout in Kathmandu’ explores how China’s engagement with Nepal extends beyond the BRI.

During his parliamentary session, Prime Minister Dahal also addressed questions about issues related to India and the Russia-Ukraine war, among other topics. Deputy Prime Minister and Foreign Affairs Minister Narayan Kaji Shrestha attended the Asia Cooperation Dialogue in Iran, where he reaffirmed Nepal’s strong commitment to regional cooperation and multilateralism, a core foreign policy priority since the Panchayat era.

Last week, Bangladeshi Prime Minister Sheikh Hasina paid an official visit to India, although she had been to New Delhi a few days ago to attend Indian Prime Minister Narendra Modi’s inauguration. Along with bilateral discussions, the two leaders addressed sub-regional and regional issues, including power trade between Nepal, India and Bangladesh. Our detailed coverage of these topics is available online under the headline ‘A Landmark in Sub-Regional Energy Cooperation’. 

After the foreign secretary-level meeting with China, Nepal is now preparing for a similar foreign-secretary-level meeting with India. These annual meetings review the full spectrum of bilateral relations.

On the domestic front, political dynamics continue to be a topic of discussion. Speculation about the stability of the current government persists, with reports indicating ongoing talks between the Nepali Congress (NC) and the UML to explore potential new government formations. Our sister publication, Annapurna Post, recently published pieces advocating for the formation of a national consensus government.

Former President Bidya Devi Bhandari returned to the political spotlight amid rumors of her renewing her UML membership. However, in a recent interview, Bhandari clarified that she has not applied for membership and that the UML has not approached her. We have analyzed this development under the heading ‘Is Bhandari Planning a Return to UML?’, concluding that while her return to active politics is possible, it is not imminent.

The government has recommended ambassadors for eight countries, with the UML selecting former bureaucrats for its quota.

Meanwhile, the Rastriya Swatantra Party (RSP) remains in the political limelight. Its General Secretary Mukul Dhakal has come up with a report describing the party as being in ‘serious illness’ and in need of a ‘major surgery’ to maintain its status as a national party. This report, which is said to be based on feedback from over 3,000 cadres across 38 districts, has given rise to significant debate within the party. Dhakal, a vocal critic of the current government and an adversary of RSP President Rabi Lamichhane, insists that RSP ministers must justify their stay in the government. There is a section in the RSP which believes the lust for power could affect its very base.

A parliamentary panel investigating the financial status of around 29 cooperatives has expedited its work. Media reports suggest that the panel is preparing to question Home Minister Rabi Lamichhane regarding his alleged involvement in the misappropriation of cooperative funds.

I will be back with more updates next week. Wishing you all a happy weekend!