📷 Image Credits: NDTV
Amid the recent upheaval in Nepal’s political landscape, Prime Minister Pushpa Kamal Dahal ‘Prachanda’ approved a significant rail deal with China under the Belt and Road Initiative. This decision, made a day before Prachanda lost a vote of confidence in Parliament, reflects Nepal’s alignment with Chinese President Xi Jinping’s infrastructure project. The deal, aimed at enhancing connectivity between Nepal and China, holds more operational importance than political significance, according to government sources. The agreement, titled ‘Strengthening the Development Cooperation in Building the Trans-Himalayan Multidimensional Connectivity Network,’ was approved during a recent Cabinet meeting.
While the move is seen as a step towards implementing Belt and Road Initiative projects, it is also crucial for initiatives like the Kerung-Kathmandu railway and broader infrastructure development along the Nepal-China border. However, it is noted that details regarding the project implementation and Belt and Road Initiative modalities are yet to be finalized. Despite the approval, it remains to be seen how this agreement will unfold and impact Nepal’s infrastructure landscape.
The political backdrop adds complexity to the situation, as Prachanda lost the confidence vote in Parliament after his coalition partner withdrew support for him. This turn of events is expected to pave the way for the formation of a new government led by former Prime Minister K P Sharma Oli. The fallout from this political shift could have implications on the implementation of various projects, including those under the Belt and Road Initiative.
The Belt and Road Initiative has been a subject of global scrutiny, with concerns raised about China’s debt practices and the sustainability of infrastructure projects undertaken. In the past, instances like the lease of the Hambantota port to China after Sri Lanka’s debt default have raised alarms about the long-term implications of such agreements. Additionally, India has expressed reservations about the China-Pakistan Economic Corridor, a flagship project under the Belt and Road Initiative, as it passes through Pakistan-occupied Kashmir.
As Nepal navigates through political transitions and infrastructure agreements, the region’s strategic and economic dynamics are likely to witness significant shifts. The approval of the rail deal with China in the midst of a confidence vote loss underscores the intricacies of geopolitics, infrastructure development, and economic partnerships in the South Asian region.
