Nepal accepts free medicines from India

Also to buy supplies worth $18 million from China

Kathmandu treads a tightrope balancing diplomatic relations with India and China amid the pandemic. On one hand, it accepts free medicines and supplies from India, on the other hand, it strikes multi-million-dollar deal with China for the same

New Delhi:  The diplomatic maxim that ‘nations do not have permanent friends and foes, but only permanent interests’ can be witnessed in the cross-border exchanges taking place in Nepal amid the novel coronavirus (COVID-19) pandemic. 

The Prime Minister KP Sharma Oli-led government is treading a tightrope – as while continuing to receive free products and medicines from India, it strikes an $18.44 million deal with China for medical supplies.

On 22 April, while Kathmandu gladly appreciated a consignment weighing almost 23-tones of medicines from India, it went ahead and signed a multi-million trade pact with China for essential supplies for COVID-19 operations. According to sources, the deal is part of the Government-to-Government agreement signed between Nepal and China last week for buying essential supplies, testing kits, Personal Protection Equipment (PPE), and other products.

India’s Bilateral Gift

In accordance with the ongoing bilateral cooperation between India and Nepal to cooperate against the COVID-19 pandemic, Ambassador of India to Nepal Vinay Mohan Kwatra on Wednesday, handed over 23 tonnes of medicines to Nepalese Minister of Health and Population Bhanubhakta Dhakal.

The consignment from New Delhi includes 8.25 lakh doses of essential medicines, including 3.2 lakh doses of Paracetamol and 2.5 lakh doses of Hydroxychloroquine.

According to a presser, this initiative manifests continuing cooperation of India and Nepal in all situations and circumstances, said a press release issued by the Embassy of India.

‘Our leaders have shown a commitment to fight COVID-19 Pandemic and protect our people. The Prime Minister of India Narendra Modi held a video conference of SAARC leaders on March 15 and offered all possible assistance to India’s neighbors, pledging US$10 million to the SAARC COVID-19 Emergency Fund. Indian and Nepali health professionals are collaborating on the ground to contain and stop this pandemic. India is committed to prepare, act and succeed together in partnership with Nepal and other South Asian partner countries in this hour of challenge,’ the presser read. 

Sino-Nepal Deal

While PM Oli was quick to thank his Indian counterpart via social media for New Delhi’s generous support of essential medicines, he was also brisk in approving the deal made by the Nepalese army with China. 

According to Nepalese government officials, two days before the Indian consignment reached Kathmandu, PM Oli had approved a payment of $18.44 million to China.

“The payment was made by the Nepalese army to the state-controlled China Sinopharm International Corporation to buy 342 tonnes of medical supplies for the prevention and control of coronavirus,” a senior Nepalese official told The News21. He added that the supplies are expected to arrive in a week’s time through the recently opened Tatopani-Zhangmu border-custom point.

According to foreign policy experts, the continued success of the recent China-Nepal agreements reflects upon Kathmandu’s foreign policy dexterity and to some extent, on the character of Sino-Indian relations. 

Nepal Seeks Assistance From ADB

Having failed to sustain relief packages from domestic resources, the Nepal government has sought $250 million assistance from the Asian Development Bank (ADB). 

As per the Nepalese Ministry of Finance estimates the relief package from ADB will cost the PM Oli-led government $1.22 billion, which comes to 3.9 percent of the gross domestic product. The relief measures are largely focused on health, social and economic sectors. 

As per officials, on 23 March, the ADB approved a $50 million package for fast track budgetary assistance to Kathmandu.