Nepal-China sign framework deal on One Belt, One Road

Ahead of an international summit in Beijing, Nepal and China on Friday signed a framework agreement on China's One Belt One Road (OBOR) initiative, giving a boost to grand economic plan to build a modern-day Silk Road trade routes.

Foreign Secretary Shankar Das Bairagi and Chinese Ambassador Yu Hong signed the Memorandum of Understanding (MoU) on behalf of their respective governments at a function organised at Foreign Ministry in Kathmandu, Kathmandu Post reports.

The signing ceremony was jointly witnessed by Deputy Prime Minister and Finance Minister for Finance Krishna Bahadur Mahara and Minister for Foreign Affairs Prakash Sharan Mahat.

India is likely to skip the event as New Delhi is concerned over increased China-Nepal ties as Chinese military assistance to Nepal has significantly increased.

Hailing the agreement as a major step in Nepal-China relations, Kathmandu Post quoted Foreign Minister Mahat as saying, "Road and railway connectivity is very important for us and we want investment in the same," said Minister Mahat.

Saying that Nepal needs huge foreign investment, he hoped that Nepal will benefit from the agreement.

The major thrust of the MoU is to promote mutually beneficial cooperation between Nepal and China in various fields such as economy, environment, technology and culture adding that the agreement aims to promote people-to-people exchanges of different levels between the two countries, according to the Ministry of Foreign Affairs (MoFA) statement.