Nepal’s diplomatic engagement with its two powerful neighbours is gathering momentum, with Prime Minister Balendra Shah preparing to visit India while a 20-member delegation of lawmakers from his party heads to China, in a move that underscores Kathmandu’s effort to maintain a balance in its foreign relations.
The parallel engagements come at a politically significant moment for Shah, who is preparing for his first official bilateral visit abroad since assuming office in March. While he is scheduled to travel to New Delhi on November 22, a high-level delegation of the ruling Rastriya Swatantra Party (RSP) is leaving for Beijing on Sunday for nearly two weeks of political and diplomatic engagement.
The timing of the two visits has drawn attention to Nepal’s traditional geopolitical challenge: maintaining close relations with India and China without becoming entangled in their competing strategic interests.
Before their departure, Shah met the lawmakers at Singha Durbar on Friday and urged them to put Nepal’s national interests at the centre of their discussions with Chinese officials.
The delegation, led by RSP general secretary and lawmaker Bipin Acharya, was advised to discuss the Belt and Road Initiative (BRI), Chinese-funded projects, tourism, economic cooperation, and the implementation of past bilateral agreements.
Although the visit is being undertaken by ruling party lawmakers rather than an official government delegation, Shah made it clear that they would be representing the ruling party and, by extension, the country's political establishment.
“Although you are not part of the government, you represent the ruling party, so you should feel free to raise the issues that matter to Nepal,” a lawmaker who attended the meeting quoted Shah as saying.
The prime minister also urged the lawmakers not to approach China with an inferiority complex because Nepal is a smaller country.
The message reflects the new government's attempt to engage both neighbours from a position of confidence while avoiding the perception that Kathmandu is tilting towards either side.
In particular, Shah asked the delegation to examine how Nepal could benefit from the BRI, an initiative that has remained contentious in Nepal because of concerns over financing, implementation and the country's ability to manage debt.
“There has been considerable debate and controversy surrounding the BRI, so you need to approach the subject carefully. Make it clear how Nepal can use the initiative in its national interest,” another lawmaker quoted Shah as saying.
He also suggested raising the possibility of converting Chinese loans extended for airport projects into grants, although he acknowledged that the delegation was unlikely to secure such a commitment during the visit.
The discussion comes as Nepal seeks to resolve questions surrounding Chinese-funded infrastructure projects, including those that have made little progress despite bilateral agreements.
Shah asked the lawmakers to seek clarity from Chinese officials about stalled projects and what needs to be done to advance their implementation.
The delegation will also explore opportunities for cooperation under China's Global Development Initiative, particularly in tourism, infrastructure and economic development.
In Beijing, the lawmakers are scheduled to meet a member of the Chinese Communist Party's Politburo and senior officials from the party's International Department. The Chinese Communist Party asked the RSP to send a high-level delegation and is arranging the visit.
Deputy parliamentary party leader Ganesh Parajuli said the prime minister had also emphasised the importance of maintaining Nepal's non-aligned foreign policy.
“He advised us on how to raise the commitments made by the state and the progress of bilateral agreements while safeguarding Nepal’s non-aligned foreign policy. He also stressed that Nepal should maintain balanced relations with both its neighbours and other countries,” Parajuli said.
Meanwhile, Shah's planned visit to India carries considerable economic and diplomatic significance.
His decision to travel to New Delhi marks a departure from his earlier position of not undertaking foreign visits during his first year in office. He responded positively to an invitation from Indian Prime Minister Narendra Modi, conveyed by Indian Foreign Secretary Vikram Misri during his November 4-5 visit to Kathmandu.
The two sides discussed a range of bilateral issues, including Nepal's proposal for a $2 billion economic assistance package from India.
Kathmandu has sought $1 billion in grants and another $1 billion in concessional loans to finance infrastructure and development projects. The proposed grants include $500 million for the Butwal-Pokhara Expressway and another $500 million for reconstructing infrastructure damaged by the Bhotekoshi flash flood.
The proposed loans would primarily finance hydropower projects and electricity transmission lines. Nepal has also requested that the loans be provided in Indian rupees rather than US dollars to reduce foreign exchange risks.
Other issues on the bilateral agenda include the Pancheshwar Multipurpose Project, petroleum pipelines connecting India and Nepal, trade, energy cooperation, and connectivity.
Kathmandu has also proposed establishing branches of India's prestigious Indian Institutes of Technology and Indian Institutes of Management in Nepal, alongside cooperation in artificial intelligence and technical assistance for cricket development.
However, former foreign secretary Madhu Raman Acharya has cautioned the government against approaching the India visit with an extensive wish list.
“Ask no favour and take no wish list along. Talk to the other side eye to eye as an equal counterpart,” Acharya told the Post, the sister publication of Kantipur, in a recent interview .
He said Shah should focus on restoring political trust and confidence with India and resolving issues that require intervention at the highest political level, rather than attempting to settle every bilateral issue during one visit.
“Concentrate on issues that need to be resolved at the highest political level. Focus on building trust and confidence. Let the mechanisms work on the issues; the rest will follow,” he said.
The advice highlights the diplomatic tightrope facing the new government. While Nepal needs India's cooperation in trade, energy, infrastructure and transit, it also seeks Chinese investment and development assistance without compromising its strategic independence.
The parallel engagements with Beijing and New Delhi therefore offer an early indication of how the Shah government intends to manage Nepal's relations with its two neighbours.
RSP chief whip Kabindra Burlakoti said the Beijing visit should go beyond tourism and contribute to the development interests of both countries.
The delegation will not discuss the Nepal-India-China border disputes, as those issues fall within the responsibility of the government and official diplomatic mechanisms, he said.
The lawmakers are scheduled to return to Nepal on November 26, four days after Shah is expected to begin his India visit.
Jaya Singh Mahara is a reporter with a decade of experience covering parliamentary affairs and political developments.
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