In October of last year, during a discussion with Chinese scholars and contemporary politicians from Chengdu, the Belt and Road Initiative (BRI) and its impact on Nepal emerged as a key topic. The Chinese participants were particularly interested in understanding the scope and influence of the BRI in Nepal. They were eager to learn about its implications for various sectors, including the general populace, civil society, the political landscape, and the media.

As someone representing Nepal, I felt compelled to address the elephant in the room: the Pokhara International Airport. I saw this as the ideal opportunity to elaborate on and discuss its significance. The Pokhara International Airport is increasingly becoming a topic of controversy and raising questions about its economic viability. Critics argue that the airport may become a debt trap for Nepal, suggesting it might not generate sufficient revenue to repay the loans from China under the Belt and Road Initiative (BRI). Conversely, some defend the airport as a strategic investment that could enhance tourism and regional connectivity. 

During the discussion, Chinese politicians and scholars were keen to understand the perceptions and expectations of the BRI in Nepal across various sectors of society. I explained that the BRI is a complex and multifaceted initiative, presenting both opportunities and challenges for both Nepal and China. I also highlighted that the Pokhara International Airport exemplifies the ambivalence and uncertainty many Nepalis feel about the BRI. While there is appreciation for the development assistance and infrastructure projects from China, there is also concern about the potential debt burden and political influence that could accompany these initiatives.

When the Pokhara International Airport was officially inaugurated in the popular tourist city of Nepal, it sparked significant excitement and high expectations across various sectors, including the public, political sphere, bureaucracy, civil society, and media. However, over a year later, the airport has generated only a modest revenue of Rs 400,000 as of February 2024, which pales in comparison to the Rs 28 billion investment.

Upon the airport's opening, China, which typically avoids making unsubstantiated remarks, openly stated that the project was part of the Belt and Road Initiative (BRI). This assertion from the Chinese ambassador to Nepal quickly drew significant attention and sparked a major debate in Nepal. The claim that the airport was, or wasn’t, part of the BRI became a prominent issue, attracting serious interest from both the southern neighbor and the Western world.

However, since Nepal is already a signatory of the BRI, the primary discussion shouldn’t solely focus on whether the project is part of a major infrastructure initiative involving a Chinese contractor and loans from the Exim Bank of China. As Chinese leader Deng Xiaoping famously said, "It doesn't matter if a cat is black or white, as long as it catches mice."

This brings us to a crucial point that demands serious attention: How can this major infrastructure project become economically viable? What step should Nepal take, and what role can China play in revitalising not only the struggling airport but also the aspirations of Nepal's 30 million people?

Not Another Hambantota Port

Despite China's aggressive efforts in countries where it has a positive influence, BRI projects have not made a significant impact. The politicization of Nepal's major connectivity initiative and its subsequent challenges do not benefit China's interests either.

If the Pokhara airport ends up being another Hambantota port, it will indicate that none of the key players in Nepal are capable of successfully advancing large infrastructure projects. This could further undermine Nepal’s strategic positioning, erode public support, and also impact Xi Jinping’s vision of revitalising the ancient Silk Road to achieve his economic and political goals. During my interaction with the Chinese audience, including scholars, a common understanding emerged: the Pokhara airport must become operational to support the realization of Chinese ambitions. As an economic world power, China holds the responsibility to make this happen.

China needs to either enhance the project's viability by helping Nepal generate business from it or by alleviating the financial burden associated with it. Daily direct connectivity between Pokhara and nearby Chinese cities could link Nepal more effectively with the world. This proposition also applies to the Gautam Buddha International Airport in Bhairahawa. With Nepal and China jointly declaring 2025 as the "Visit Nepal Year" for Chinese tourists and major Nepali cities establishing sister city relationships with their Chinese counterparts, the timing is crucial and the need is pressing.

Viability Not a Question

Pokhara, being Nepal's most popular tourism destination with its relatively better infrastructure, has the potential to attract tourists from around the globe. It could serve as a major gateway to help Nepal achieve its goal of drawing millions of tourists each year.

Revitalising the airport could significantly enhance connectivity between the two countries—a point that political leaders from both nations emphasise during nearly all their visits. The issue of widebody aircraft being unable to land at the Pokhara airport is a critical concern that cannot be overlooked.

Moreover, flights from Pokhara to various destinations would benefit China and enhance tourism prospects. The setbacks from the COVID-19 pandemic highlight the need for diversifying travel gateways, and the Pokhara airport could serve as one such alternative.

All About Confidence

For Nepal and China, a project like the airport should not be evaluated solely on financial viability and gains. Both countries need to view this project as an opportunity to build mutual confidence and strengthen their partnership. As a major economic power, China should demonstrate generosity and openness. It needs to assess Nepal’s balance sheets, trade deficit, and its capacity to advance projects independently. 

Nepal must demonstrate strong willpower to advance its development. Infrastructure should be viewed primarily through an economic lens, though politics and geopolitics cannot be ignored. These factors will always be a part of the equation—a reality both countries must confront, accept, and work to address while boosting each other’s morale.

Although China has successfully established its economic strength, it still falls short in fully realising its flagship initiative, the BRI. Successfully implementing projects like the Pokhara International Airport in Nepal would send positive signals globally.

With the Nepali Congress and CPN (UML) leading the government, the timing is ideal for Nepal and China to build consensus and move forward together.

(Joshi is the chairman of BP Koirala School of Public Policy X: @premjoshiNC)

(The opinion article was published on the August issue of the  New Business Age magazine .)