Prime Minister's commitment to convert the loan of Pokhara airport construction into a subsidy

KATHMANDU, March 19:Prime Minister Pushpa Kamal Dahal "Prachanda" has committed to take the initiative to turn the loan obtained for the building of Pokhara Airport into a subsidy. During a Sunday program in Pokhara, he stated that he is discussing it with neighboring countries.

He stated that he is aware of states that Pokhara International Airport is drowning in debt, and that he is considering transforming not only 25%, but all of the debt, into grants.

The government borrowed about 22 billion rupees from the Chinese Exim Bank to build the airport, which opened on January 1, 2023. Nepal must pay interest on 75% of the loan at a rate of 2%, while the remaining 25% of the loan does not have to pay interest.

According to the half-yearly installment payment plan, the Civil Aviation Authority of Nepal (CAAN) is required to pay 2.4 billion rupees in annual installments for the loan. The CAAN plans to pay the loan installment by September 17, 2035.

In 2015, Nepal's government agreed to take out a loan from that bank to build the airport.