What next for Nepal if BRI fails to materialize?

Five years ago, during his visit to Kathmandu, Chinese President Xi Jinping issued a strong warning: “We will crush any force that casts an eye on China’s sovereignty.” This cautionary statement reflected his belief that powerful nations were using Nepal as an arena for anti-China activities.

Xi said this during his talks with Prime Minister KP Sharma Oli. As Oli prepares for his upcoming visit to China, it is likely that this issue will resurface. The key question is how Nepal will address these concerns and reassure its northern neighbor. Nepal must have carefully prepared its responses.

Xi has continued in power in China since that meeting in Kathmandu, while Oli has returned to power following shifts in Nepali political scene. Over the past five years, both domestic politics and the geopolitical environment have become more complex.

During Oli’s visit, the two leaders are expected to discuss bilateral relations, mutual cooperation, development, prosperity and the complexities of regional and global politics. Oli’s visit to China will be primarily focused on securing economic assistance and deepening bilateral relations. However, divisions within Nepal’s ruling coalition, particularly on cooperation under China’s Belt and Road Initiative (BRI), will pose a significant challenge for Oli. The Nepali Congress (NC), the leading party in the coalition, has firmly opposed BRI projects funded through loans, citing fears of Nepal falling into a Chinese debt trap. The Central Working Committee of the party has already resolved to reject any BRI loans. NC leaders are arguing that loan agreements come with long-term risks. Adding to the complexity is external pressure from regional and international powers which are discouraging Nepal from moving forward with BRI implementation.

Oli, however, supports BRI projects funded through subsidized loans if grants are not an option, and is trying to persuade the NC leadership. However, if China insists on loans and the NC maintains its opposition, Oli could find himself in a difficult situation. Speculation is already circulating that this visit might be limited to a mere “sightseeing tour” for the Prime Minister.

What next then?

Although the contents of the BRI agreement has not been made public yet, it has become a politically charged issue. It has become a tool for some to gain power and unseat others. The lack of consensus among ruling parties complicates Prime Minister Oli’s position, especially when addressing the Chinese leadership about Nepal’s reluctance to accept loans under BRI. While such political maneuvering might serve short-term goals, it raises concerns about the long-term impact on Nepal’s relations with China, a rising global power. A measured approach, therefore, is necessary.

If BRI loans cannot proceed, Oli could request China for grant support for two high-priority projects: a modern terminal building at Tribhuvan International Airport and a metro rail system for Kathmandu. The design of the airport terminal, estimated to cost Rs 40bn, has already been drawn. Although expansion works like building a taxiway are ongoing, it is certain that the existing terminal cannot handle passengers after five years.

On the other hand, the population of Kathmandu Valley has been increasing, with some estimating it has already reached six million. The existing transport infrastructure cannot handle visitor traffic 10 years from now. Considering growing urbanization, vehicle pressure, and population growth, there is a necessity to move forward with metro rail construction. Studies conducted 12 years ago by the Korea Rail Network Authority estimated the metro project’s cost at Rs 600bn. With limited scope for road expansion, initiating metro construction now could avert severe transportation challenges in the future.

Nepal’s economic constraints, including its reliance on domestic debt to pay the salary of public servants,make large-scale infrastructure projects unrealistic without foreign assistance. Instead of requesting piecemeal aid like ambulances and small-scale school buildings from its neighbors, Nepal should strategically seek substantial projects that enhance income generation and public services. If China agrees to fund one project as a grant, Nepal could approach India for the other. After the China visit, the Prime Minister will certainly visit India.

But for now, Nepal does not need to make rail construction the primary agenda with China and India. China’s rail network, which has reached Shigatse, will likely extend to Nepal to access South Asia’s markets. Similarly, India has begun feasibility studies for the Raxaul-Kathmandu rail line in response to China's Kerung-Kathmandu railway plans. Nepal should align its infrastructure priorities with these developments and seek support based on its most urgent needs.

Key agendas that Nepal must raise

Along with discussions on economic cooperation and mutual relations, Nepal must raise three critical issues with China during Prime Minister Oli’s visit. First, Nepal should emphasize the need for uninterrupted operation of northern border checkpoints, which have faced frequent closures and disruptions. Second, the persistent delays by Chinese contractors in handling infrastructure projects in Nepal must be raised, as they have negatively impacted public perception and project timelines. Lastly, the increasing involvement of Chinese nationals in criminal activities within Nepal requires serious attention to ensure law enforcement and maintain bilateral trust. Addressing these issues is crucial for strengthening Nepal-China ties and resolving ongoing challenges.

Irregular border checkpoints: Following the promulgation of a new constitution in 2015, Indian blockade caused severe shortages of essentials in Nepal, bringing daily life to a halt. During the crisis, China provided much-needed relief, including food grains, clothing, and even oil tankers, signaling its potential as an alternative supplier of petroleum products. In response, Nepal began prioritizing the opening of northern checkpoints and accelerating road construction towards China. However, since the COVID-19 pandemic, key checkpoints like Tatopani, Rasuwagadhi, Korala, Kodari, and Yari have become unreliable, with unpredictable closures disrupting trade. As a result, traders have been facing delays, which is causing perishable goods like fruits brought for major festivals to rot, resulting in huge losses. Therefore, Nepal remains cautious about the reliability and operational effectiveness of Chinese checkpoints. Ensuring smooth, transparent, and mutually beneficial checkpoint operations could facilitate easier trade and potentially strengthen bilateral relations between Nepal and China.

Working style of Chinese contractors: China’s rapid development, driven by its unmatched capacity, technology, and efficiency, has amazed the world. However, this renowned work ethic seems absent among Chinese contractors operating in Nepal. Many Nepali infrastructure projects handled by Chinese construction companies have been facing delays, mismanagement and negligence, leading to growing dissatisfaction among Nepalis. The stalled Narayangadh-Butwal road expansion project is a glaring example of this negligence. While the blame is not entirely one-sided, Nepal’s bureaucratic hurdles, complex policies, corruption, and irregularities also contribute to these challenges. It is necessary for the leaders of the two countries to address these issues for fostering productive partnerships and improving perceptions of Chinese contractors in Nepal.

Chinese citizens in criminal activities:  Since 2015, the influx of Chinese traders, tourists, and workers in Nepal has surged. Similarly, the number of Nepalis going to China for travel, study, training and seminars have also grown. Chinese investments have also expanded, particularly in hotels and restaurants in areas like Thamel, Jhamsikhel, Pokhara and Lumbini. However, this growing presence has been accompanied by a rise in criminal activities involving Chinese nationals, including kidnapping, bank fraud, cybercrime, counterfeit currency, and gold smuggling. Since the growing involvement of Chinese nationals in crime and irregularities in Nepal is not sending a good message, the issue needs to be discussed at the highest level during Oli’s China visit.

Coalition finding common ground on BRI

Nepali Congress (NC) and CPN-UML are working to bridge their differences over China’s Belt and Road Initiative (BRI) ahead of Prime Minister KP Sharma Oli’s Beijing visit. The NC has taken a firm stance against accepting loans for BRI projects, focusing instead on grants or concessional financing to avoid economic burdens.

A four-member task force representing both parties in the coalition has developed a unified position on the draft BRI implementation plan proposed by China. According to party leaders, the task force’s draft of Nepal’s response has been forwarded to the Chinese side. If China agrees, a new agreement to advance the BRI will be signed during Prime Minister Oli’s visit to China from Dec 2 to 6.

At the leadership level, the NC and UML have reached a consensus that loans under the BRI are unacceptable. Prime Minister Oli has reiterated this position in Cabinet meetings and public forums, emphasizing Nepal’s unwillingness to take loans. This position aligns with the stances of three major parties—NC, UML, and CPN (Maoist Center)—who agree that Nepal’s current economic challenges make loans untenable.

In June, former Prime Minister Pushpa Kamal Dahal expressed in Parliament that Nepal prefers grants over loans and that, if loans are essential, they should be concessional, with interest rates not exceeding 1.5 percent. Dahal also stated that Nepal seeks financing from China under terms similar to those offered by the World Bank and the Asian Development Bank.

However, China’s official stance on the BRI does not include grant provisions. A 2023 Chinese white paper describes the BRI as a joint development initiative rather than a foreign aid program, emphasizing mutual contributions and shared growth. “The principle of joint contribution highlights that the BRI is not an international aid program or a geopolitical tool but a collaborative effort for shared development,” the document states. So far, China has not publicly addressed Nepal’s request for grants.

The Pokhara International Airport loan has become another contentious issue. Nepal is considering asking China to waive the loan. Dahal had made a similar request during his tenure, and now the Oli administration is preparing to do the same.

In September, Deputy Prime Minister and Finance Minister Bishnu Poudel requested China to waive the airport loan. However, Chinese Ambassador to Nepal Chen Song has indicated that waiving such loans may be difficult.

Initially, the NC was staunchly opposed to the BRI, but it has softened its position. NC leaders now believe the BRI could be viable if China offers grants for infrastructure projects. To further these discussions, Minister for Foreign Affairs Arzu Rana Deuba is traveling to Beijing to prepare for Prime Minister Oli’s visit. Rana is expected to finalize the drafts of agreements that could be signed during the visit.

With a tentative consensus between coalition partners, the risk of political instability appears to have been mitigated. A senior NC leader remarked, “We should not oppose the BRI outright but must ensure Oli doesn’t sign any agreements that could lead Nepal into a debt trap.”

Tejeswor Babu Gongah: Committed to excellence

Tejeswor Babu Gongah, whose life reflects an unwavering commitment to education, culture, and public service, was born in Bhaktapur, Nepal in 1935. His early life was shaped by the natural environment–one with open space and no urban constraints–and the socio-political changes taking place at the time. He was raised by his maternal uncle who played a significant role in his early education. 

In 1940, when he was just five years old, his parents followed a traditional cultural practice. Children were given five freshly harvested rice grains without letting them touch their tongues. This practice was believed to bring knowledge and wisdom. Gongah ate the rice grains. This ritual was believed to ensure that he would become a learned and highly educated person.

Gongah started his formal education at the Bhaktapur English School, which later became Shree Padma High School. During this time, political changes were taking place in Nepal. In 1946, Prime Minister Padma Shamsher ascended the throne and transformed the school into a high school. These early years also marked a period of political awakening for Gongah.

During the height of the anti-Rana struggle, congress leaders came to speak at his school, criticizing the Rana regime for denying people their educational rights. Gongah recalls the moment vividly, though he was too young to understand the intricacies of politics. “We were told we would get free snacks and once we reached, they were giving the speech and we were forced to listen to them,” he says. He recalls wondering about the congress party, asking himself questions like, “Do they have three legs? Do they have horns?” He was fascinated but unaware of the true nature of the political discourse happening around him.

In 1948, Gongah moved to Kathmandu and continued his studies at JP High School. One of his teachers was Sarada Prasad Upadhyay, brother of the famous politician Surya Prasad Upadhyay. In 1953, after completing his School Leaving Certificate (SLC), Gongah enrolled at Tri Chandra Multiple Campus for his intermediate studies in arts. During his time at college, Gongah discovered his passion for teaching. He later worked as a headmaster there for three years. He also taught English at Shanker Dev Campus. 

His role at Shanker Dev Campus also coincided with his involvement in teaching Nepal Bhasa (Newar language), a skill that garnered significant attention. The General Secretary of Shanker Dev Campus approached him to teach Nepal Bhasa, as there was increasing pressure to preserve the language. Gongah happily accepted the offer and taught the language for around four years. His deep connection to his cultural roots made this an enriching experience.

As his career progressed, he transitioned into a government position as a section officer. However, his thirst for knowledge didn’t stop there. In pursuit of further education, Gongah traveled to the US to study Cultural Anthropology, a field that fascinated him. In America, he encountered a new academic environment. He found that success there was often linked to one’s ability to discuss ideas and engage in academic debate. 

His time in the US proved to be a transformative experience. Despite facing some initial challenges, such as being looked down upon by some peers for coming from a developing country, he persevered. He spent hours in the library, diligently studying the systems, cultures, and languages of his new environment. His efforts paid off when one of his professors, impressed by his academic rigor, publicly praised Gongah in class for preparing exceptional research notes. “I still have all the term papers that I had prepared at that time,” says a visibly emotional Gongah.

Over time, Gongah gained the respect of his peers, who began offering him help and support. They would bring him blankets, clothes, and provide transportation to and from his apartment. He also delivered numerous speeches and wore traditional Nepali attire, including the Dhaka topi (Nepali traditional hat), which helped him retain a sense of his cultural identity while abroad.

After returning to Nepal, Gongah resumed his role in the government service and continued to work in the training sector, imparting knowledge to new recruits. He was also entrusted with the position of training chief. His dedication to training and mentoring new generations of officers marked the continuation of his commitment to education.

Despite his deep engagement in public service and education, he has never been interested in active politics. Although he has witnessed many political changes in Nepal, from the fall of the Rana regime to the political turmoil and the rise of democracy, he has always preferred to focus on his work rather than getting involved in political activism. Instead, he has always been captivated by the rich culture of Nepal, which has greatly influenced his work and personal life.

He also served as the first elected president of the Bhaktapur Bidhyarthi Sangh (Bhaktapur Student Union) where he had the opportunity to meet many prominent poets and intellectuals, including the legendary Laxmi Prasad Devkota. “When I was preparing for my SLC exam, he was one of my tutors,” says Gongah.

He was deeply influenced by Devkota and attributes much of his writing style to Devkota’s influence. “He was a fluent English speaker and he spoke for nearly one hour when he visited the Soviet Union to participate in an international youth festival held in Bucharest in Romania. I was enthralled,” says Gongah. He adds Devkota was friendly and approachable despite his stature as a literary giant.

Throughout his life, Gongah has maintained a close relationship with the royal family. He worked closely with King Birendra and was frequently invited to brief the monarch on various government projects even after his retirement. 

In addition to his work in the government sector and academia, he is also a prolific writer. He began writing for Gorkhapatra when he was quite young and his articles earned him recognition. He was paid Rs 20 per article and Gongah confesses that he didn’t know you could get paid to write before that. He says his proficiency in English, honed during his time in the US, enabled him to write fluently and effectively. He continues to contribute to newspapers and engage in cultural and educational discourse through his writing.

He remains a respected figure in Nepal, admired for his work in education, culture, and public service. Even today, he continues to inspire those around him with his passion for knowledge, his commitment to excellence, and his deep respect for Nepal’s rich cultural heritage.

Foreign employment: Women workers face challenges at home and abroad

Foreign employment has been heralded as a lifeline for Nepal’s struggling economy for a long time. The glossy statistics on remittance have painted a picture of collective prosperity. Yet the allure of economic gain masks a brutal reality that is far less glamorous, especially for women. Foreign employment poses challenges to women not only as those who travel to the destination country but those who remain in the country of origin as well. For those left behind in rural Nepal, the absence of male members of the family members often means isolation, economic vulnerability and an overwhelming burden of household responsibilities. For those women who dare to venture abroad, the promise of a better life is often replaced by exploitation, abuse and a deep sense of social alienation. This vicious cycle of suffering, silenced by the glitter of remittance dollars, exposes the dark underbelly of foreign employment.

Foreign employment, while conjuring the image of economic upliftment, neglects the profound social costs that come with it. As rural men migrate for work, women who stay behind are forced to take on dual roles. This not only thrusts them into challenging positions of managing households alone but also compels them to step into roles that are otherwise historically done by men which include overseeing finances and maintaining farms. 

In cases like these women are not empowered by their new responsibilities but instead overwhelmed. The workload increases with no increase in helping hands and support mechanisms. This dual burden leads to exhaustion and mental health challenges. In the context of rural women, who are marginalized by geography these challenges are compounded by lack of resources and social networks to cope with this shift. Their workload intensifies while their autonomy remains constrained by societal expectations and limited access in decision making roles within the family.

The narrative that women in rural areas are mere passive recipients of remittances is misleading. They are not passive beneficiaries as in reality they are managing the entire households and communities. But their labor, both emotional and physical, goes unacknowledged, perpetuating their marginalization.As men leave, rural communities face depopulation, and agriculture, the major source of livelihood for many families suffers. With fewer hands available to work on the fields, the fields lie barren, further eroding food security. Moreover, this situation places women in a precarious position of economic and social vulnerability. The absence of male members of the family increases their exposure to exploitation. Women in rural Nepal, now the sole managers of remittances, are vulnerable to manipulation and economic abuse from extended families or in-laws who may take advantage of their isolated position.

Financial success abroad does not necessarily translate into marital success at home. At times, the long separations caused by foreign employment stretch the familial bonds to their breaking point. Communication between spouses becomes infrequent, often leading to misunderstandings, conflicts over money and sometimes even divorce. There have been reported cases of husband/wife forging new relationships abroad or at home, disrupting their married lives. 

For many women, the emotional strain of running a household alone, coupled with societal pressures to maintain family honor could lead to several mental health issues. Any perceived failure such as financial struggles, household management or even relationship issues may be seen as personal failure further intensifying the mental burden. Depression, anxiety and loneliness are evident issues, but these women are often left to cope without any access to mental health care or even a listening ear. While the men abroad are hailed as breadwinners, women shoulder the emotional and psychological costs of sustaining the family integrity.

While the challenges faced by women left behind are severe, those who migrate for work face an entirely new set of struggles. It takes only a small mistake for the journey of economic dreams to turn into exploitation nightmares. Women migrating to countries in the Middle East or Southeast Asia for work, often in caregiving or domestic roles, are vulnerable to extreme exploitation. These sectors, characterized by poor working conditions, long hours, and meager pay, frequently expose women to physical, emotional, and sexual abuse.

Migrant women, especially those undocumented or without proper legal protections, live in constant fear of deportation or retaliation, making it difficult to seek help or report abuse. The very systems that are meant to protect them, legal aid and worker’s rights organizations, are often inaccessible due to language barriers, cultural differences, or fear of losing their jobs. These barriers leave women trapped in exploitative situations with little recourse to justice. Adding to their plight is the severe isolation that migrant women often endure. Live-in domestic workers, in particular, are cut off from the outside world, living at the mercy of their employers. This isolation, compounded by the pressures of being away from their families, leads to significant mental health challenges, including depression and loneliness. The lack of social contact or support systems exacerbates their already precarious situation.

A particularly harsh reality for female migrant workers is the issue of unwanted pregnancies, often resulting from sexual exploitation. Many women, isolated and vulnerable, find themselves in situations where they are taken advantage of by employers or intermediaries. With limited access to reproductive healthcare, these women are at high risk of unsafe abortions and other health complications, jeopardizing their physical well-being and sometimes their lives. Destination countries frequently fail to provide adequate healthcare for migrant women, particularly those in the lower rungs of the workforce. In addition, cultural and legal restrictions around reproductive rights often prevent women from seeking the help they need, forcing them to resort to dangerous methods to terminate pregnancies or manage health issues.

The challenges faced by women, both at home and abroad, highlight the deeply gendered impact of labor migration. As women are increasingly called upon to take on new roles without adequate support, both within the household and in foreign countries, the social fabric begins to fray. Communities become depopulated, family ties strained, and the societal role of women burdened by unrealistic expectations. Critically, the focus on remittances while essential to the economy often overshadows these social costs. The long-term effects of migration on women are frequently absent from policy discussions, which tend to focus on the financial benefits rather than the deep social wounds migration creates. Migration is an inevitable economic reality for many Nepali families, but it need not come at the cost of women’s well-being. By recognizing the gender-specific challenges inherent in labor migration and addressing them through targeted policies, Nepal and its labor partners can ensure that foreign employment is a true path to prosperity, one that uplifts rather than exploits the women at its core.