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360info
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Ramesh C. Paudel and Subin K.C, Tribhuvan University

EXPLAINED: A potential debt trap in nepal - The Real Truth

The deadly plane crash in Pokhara which killed all 72 people on board put the spotlight on the nearby international airport. The airport was built with assistance from China through the Belt and Road Initiative and has been controversial due to confusion over its financing. 

It is alleged that through the Initiative, China’s debt diplomacy could be converted into 'debt trap diplomacy', which involves sponsoring significant infrastructure projects in developing countries with unsustainable loans and then exploiting the debt to exert influence over those governments. 

Aside from the Pokhara International Airport, Nepal has just completed the construction of two major projects Gautam Buddha International Airport at Bhairahawa and Chobhar Dry Port in the capital, Kathmandu. 

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