Fiscal Nepal
First Business News Portal in English from Nepal
Harka sampang parliament
KATHMANDU: Nepal’s political debate over foreign assistance intensified after Member of Parliament and Labor, Culture Party Chair Harka Sampang called for the cancellation of the Millennium Challenge Corporation (MCC) compact, arguing that it poses risks to national sovereignty and Nepal’s non-aligned foreign policy.
Speaking during the first session of the newly formed House of Representatives, Sampang urged lawmakers to reconsider the agreement with the United States government-backed infrastructure initiative, stating that it should be scrapped in the interest of national independence.
“To protect the country’s sovereignty and its non-aligned foreign policy, I demand the cancellation of the MCC agreement, which was initiated with military strategic objectives,” he said.
MCC Controversy Returns to Parliamentary Debate
The Millennium Challenge Corporation (MCC) Nepal Compact, a $500 million grant program supported by the U.S. government, has long been a politically sensitive issue in Nepal, triggering divisions among political parties, civil society groups, and policy analysts over its geopolitical implications.
Sampang’s remarks have revived public debate on whether the agreement aligns with Nepal’s constitutional foreign policy framework, particularly its commitment to non-alignment.
Political Context
His statement comes at a time when Nepal’s new parliament has just begun its legislative session following the February 21 elections, with lawmakers outlining competing visions on governance, foreign policy, and economic reform.
Observers say the renewed discussion on MCC reflects broader global concerns over foreign aid, strategic infrastructure investment, and geopolitical influence in South Asia, where major powers are increasingly competing for economic and strategic partnerships.
Broader Implications
The call for cancellation is expected to generate political debate in Parliament, particularly among parties that have previously supported or opposed the MCC compact.
Analysts suggest the issue could once again become a key point of contention in Nepal’s foreign policy discourse, especially as the country balances relations with the United States, China, and India.
The MCC agreement remains one of the most debated international development projects in Nepal’s recent history, with implications for infrastructure development, energy transmission projects, and geopolitical positioning in the Indo-Pacific region.
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