Leaders of Nepal’s major ruling parties have indicated that they are unlikely to approve the Belt and Road Initiative (BRI) Implementation Plan proposed by China during Prime Minister KP Sharma Oli’s upcoming visit to Beijing. Instead, they have suggested that discussions may progress if China agrees to a new draft framework agreement supported by both the Nepali Congress and the CPN (UML).

Speaking at a BRI-related program organized by the Center for Social Innovation and Foreign Policy on Wednesday, UML leader and former Foreign Minister Pradeep Gyawali stated that talks are underway to move forward with a new "Cooperation Framework." The ongoing discussions aim to address the Nepali Congress’s reservations about the BRI Implementation Plan.

The Nepali Congress has firmly opposed taking loans under the BRI. Leaders from both ruling parties confirmed that the NC office bearers have decided against accepting loans, leading to efforts to formulate a mutually agreeable framework. Nepali Congress spokesperson Prakash Sharan Mahat also emphasized that a short framework agreement has been proposed to advance discussions.

As part of preparations for the prime minister's visit, Foreign Minister Arju Deuba will travel to Beijing on Thursday, where she is expected to propose the new framework agreement. Prime Minister Oli will make an official visit to China on December 2.

The ruling parties remain divided over whether Nepal should accept loans under the BRI. However, both Gyawali and Mahat agree that taking additional loans for large projects is not feasible given Nepal’s current debt levels.

"Public debt has exceeded Rs 2500 billion, which is 44 percent of our gross domestic product. In this situation, taking loans for large projects is not advisable," Gyawali said, adding, “It would be immature to criticize borrowing from one country while favoring loans from another. Can loans be classified as communist or democratic?"

Congress leader Mahat highlighted that China’s previously promised grants have not yet been delivered. "Our priority should be on receiving the grant first. We have no objection to such grants being part of the BRI framework," he noted.

This shift in approach reflects Nepal’s cautious stance on managing public debt while seeking constructive engagement with China.