Nepal's government urges China to convert loan for Pokhara International Airport into a grant

KATHMANDU, Aug 26:The government has written to China, requesting that the loan used to construct the Pokhara Regional International Airport be converted into a subsidy.

The Ministry of Finance has issued a letter to China requesting that the loan be converted into a grant.

Dhaniram Sharma, Head of the International Financial Aid Coordination Division, delivered the letter to Yang Weiqun, Vice President of China International Development Cooperation Agency, during a Ministry of Finance event.

Before handing over the letter, Deputy Prime Minister and Minister of Finance Bishnu Prasad Paudel requested that the Chinese side convert the loan taken during the construction of Pokhara International Airport into a grant, with special consideration for Nepal's economic situation, as China is a good neighbor.

Finance Minister Paudel believes that the Chinese will meet the Nepalese government's request.

Finance Minister Poudel made the plea in the presence of Dr. Ram Prasad Ghimire, Secretary of the Ministry of Finance, Chinese Ambassador to Nepal Chen Song, and others.

According to the current currency rate, the Nepalese government agreement to take a loan of about  25 billion 88 million rupees (1.33 billion 87 million 40 thousand Chinese yuan) from China's Exim Bank for the Pokhara International Airport project.

A credit deal for the development of Pokhara International Airport was signed on the 21 March , 2016, and construction began on 11 January , 2017. The airport was inaugurated on 1 January , 2023.