Minister for Foreign Affairs, Dr Arzu Rana Deuba, has reiterated that the recently signed BRI framework agreement between Nepal and China is the one based on grant assistance. Responding to the queries of the Lawmakers at the meeting of the International Relations and Tourism Committee of the House of Representatives (HoR), Foreign Minister Deuba clarified that there has been no agreement to receive loan from China in the recent official visit of the Prime Minister KP Sharma Oli. She also claimed that China expressed readiness to provide aid and grant after she made it clear to them that Nepal’s GDP was very low for debt servicing. Foreign Minister Deuba made it clear that all the projects under the BRI will be implemented under aid financing modality.
“I shared with my Chinese counterpart that we are not at a position to take loan of any kind at present due to the constraints of our GDP. And without any hesitation, I also said that we expect only aid and grants from China,” she pointed out, adding, “We need to be frank about our position and I did the same.” “And whatever projects we have included in the framework agreement will be executed with the grants.” In a different context, Foreign Minister Dr Rana expressed the view that both China and India have accorded due importance and priority in their relations with Nepal. Both the neighbouring countries have been assisting Nepal since a long time and we will continue to receive their good will and cooperation in the future as well, she said.