Former President Bidhya Bhandari’s China Visit Raises Eyebrows Amid Nepal’s Mounting Debt Crisis
Hamrakura
Published 2025 May 23 Friday
Kathmandu: Former President Bidya Devi Bhandari's upcoming visit to China has sparked speculation and controversy within Nepal’s political and economic circles. Her increasing involvement in communist politics and rumors of her possible bid to replace KP Sharma Oli as chair of the CPN-UML have added further intrigue to the timing of her trip.
Set to begin on Saturday, the 10-day visit will include high-level meetings with Chinese Communist Party leaders and is being framed by UML officials as an opportunity to “strengthen Nepal-China ties.” However, critics argue the visit serves more political ambition than national interest, especially amid growing concerns over Nepal’s rising public debt and Chinese influence.
Jumbo Delegation Raises Concerns
Bhandari will be accompanied by an eight-member delegation, including Minister for Industry, Commerce, and Supplies Damodar Bhandari, UML Secretary Raghubir Mahaseth, and former ministers and MPs. The presence of sitting government officials in what appears to be a party-driven tour has raised questions about state resources being used for political purposes.
This trip, reportedly approved in consultation with UML Chair KP Sharma Oli, comes as public criticism mounts over the government’s spending on non-essential foreign trips while Nepal struggles with a widening budget deficit and stagnant economic performance.
Nepal’s Deepening Debt Woes
According to the Public Debt Management Office, Nepal’s public debt has soared to Rs 2.622 trillion as of mid-Baishakh. This includes Rs 1.266 trillion in domestic debt and Rs 1.355 trillion in foreign loans. The debt-to-GDP ratio now stands at 42.94%, with experts warning that Nepal is inching closer to a debt trap.
A significant portion of this debt has been attributed to projects like the Pokhara Regional International Airport, built with loans from Chinese institutions. A recent report by a Public Accounts Committee subcommittee flagged Rs 10 billion in corruption during the airport’s construction — a report that has now been forwarded to the Commission for the Investigation of Abuse of Authority (CIAA) amid allegations of pressure from Chinese contractors.
Political Ambitions Behind the Visit?
Observers believe Bhandari’s China visit is also tactically aligned with her political aspirations. Her growing visibility in UML politics, coupled with recent speculation about her desire to lead the party, suggests the visit may be aimed at securing support from China — a powerful player in Nepal’s geopolitics.
Sources suggest China sees Bhandari as a potential ally who could help extend its influence in Nepal, particularly within UML circles. Her past engagement with China during her presidential term, including her 2076 BS state visit, laid the groundwork for Xi Jinping’s historic Nepal visit later that year.
Experts Urge Fiscal Discipline
Amid these developments, economists and policy experts are calling for urgent fiscal discipline. With the budget deficit already at Rs 234.57 billion in the first ten months of FY 2081/82 and development spending stalling, critics argue that the government should curb wasteful expenses, including politically motivated foreign trips.
They warn that without strict debt management, Nepal risks falling into a vicious debt cycle where future generations bear the burden of today’s poor planning.
While the UML promotes Bhandari’s China visit as a diplomatic opportunity, the lack of tangible national benefit, rising debt, and political undertones suggest otherwise. If Nepal is to avoid further financial and geopolitical vulnerability, it must prioritize transparency, fiscal responsibility, and genuine national interest over partisan diplomacy.