KATHMANDU: Foreign Minister Dr. Arzu Rana has clarified that the agreement between Nepal and China under the Belt and Road Initiative (BRI) is not a loan.

Addressing the International Relations and Tourism Committee of the House of Representatives on Monday, Rana emphasized that the agreement, signed during Prime Minister KP Sharma Oli’s visit to China in December 2024, does not involve any loan.

“The BRI agreement does not include any mention of a loan. The claims suggesting the agreement is a loan are false,” Rana said. “The terms used in the agreement are ‘grant’ and ‘aid,’ and the word ‘loan’ is not present anywhere, even if you read the document repeatedly.”

The agreement was signed during Prime Minister Oli’s visit to China from December 2 to 5, 2024. Rana also highlighted that the political unity in Kathmandu played a key role in facilitating the agreement.

Under the agreement, China has launched a program to invest Rs 100 billion in buffalo farming in Nepal as part of the BRI initiative.