February 25: Finance Minister Janardan Sharma, who responsible for the overall financial matters of the country, has been avoiding the issue of US-funded project, Millennium Challenge Corporation (MCC).

During last Sunday, Finance Minister Sharma skipped the parliament meeting with an excuse of health-related issues when the MCC was tabled in the House of Representatives (HoR). He then visited Parbat district ahead of Thursday’s House meeting, which was later postponed after the political parties could not forge an understanding over the disputed issue of MCC. The House meeting on Thursday was called for discussing the MCC.

The MCC agenda was presented in parliament on February 20 by Communications Minister Gyanendra Bahadur Karki due to the absence of Finance Minister Sharma.

Minister Sharma has been criticized for "wandering" outside the Kathmandu Valley in an irresponsible manner at a crucial period when political parties were needed to seek consensus to endorse the MCC.

A picture of Sharma and his wife Laxmi having lunch at Kushma’s ‘sky chair’ after observing bungee jump was circulated on Wednesday – the day when the  Parliament Secretariat published the possible list of agenda items.

After the MCC was tabled in parliament, Finance Minister Sharma's party, the CPN-Maoist Center and another partner in the coalition government, CPN Unified Socialist have been waging protests from the parliament to the streets.

Some MPs from the party had protested against the MCC in parliament on the day when it was tabled. Even now, sister wings of the ruling Maoist center and the CPN Unified Socialist party are busy throwing stones in the streets on a daily basis.

Deuba's attempt to take UML in confidence

After the ruling parties failed to reach an understanding to pass the MCC, Prime Minister Sher Bahadur Deuba is trying to take main opposition party – CPN UML – into confidence even at the cost of breaking the alliance.

On Thursday, Prime Minister Deuba deferred the House meeting to hold discussions with the UML in order to solicit support from the main opposition party to pass the MCC. During the meeting with UML Chairman KP Sharma Oli, PM Deuba said that he was ready to find a way out by openly discussing all the demands raised by the UML, Nepali Congress General Secretary Gagan Thapa, said quoting Deuba.

According to Thapa, PM Deuba had hinted that the ruling alliance would end if the coalition partners including the Maoist Center, CPN Unified Socialist, and Janamorcha did not support him to endorse the MCC.

Prime Minister Deuba, who is also the president of Nepali Congress, urged the UML to pass the MCC by removing the house obstruction. Thapa said that the issue of passing the MCC from the parliament was a matter of Nepal's international relations and credibility.

In response, UML Chairman Oli said that he would discuss within the party and inform whether or not to support the government to pass MCC. Before meeting UML Chairman Oli, Deuba had held decisive talks with CPN Maoist Centre Chairman Dahal and CPN Unified Socialist Party Chairman Madhav Kumar Nepal on Thursday. However, the chairmen of both the parties made it clear that they would not support the MCC in its current form.

China's interest in crisis

As the political crisis deepens in Nepal over the US-backed project MCC, Nepal's northern neighbor has shown a particular interest in this matter.

UML Chairman KP Sharma Oli and Unified Socialist Party Chairman Madhav Kumar Nepal held two separate virtual talks with two top leaders of the Foreign Department of the Chinese Communist Party on Wednesday.

The conversations took place while the United States accused China of having a vested interest for its alleged role in delaying the parliamentary approval of MCC. During the talks, China reportedly expressed serious security concerns.

According to a source, Chen Zhao, Deputy Minister of the Communist Party of China (CPC), expressed concern that the MCC could pose a serious security challenge to China from the Nepali soil. “We have been treating Nepal as a close friend till now,” said a leader close to Madhav Nepal quoting the Chinese minister at the virtual meeting, “However, the growing security challenge from Nepali side has raised concerns. You just have to take this matter more seriously”.