Govt requests China to convert Pokhara airport loan to grant

KATHMANDU: The government has formally requested China to convert the loan taken for the construction of Pokhara International Airport into a grant.

The finance ministry has written a letter to the Chinese authorities to convert the loan into a grant.

Joint Secretary Dhani Ram Sharma, who heads the International Economic Assistance Coordination Division at the ministry, handed over the letter to Yang Weikun, Vice Chairperson of the China International Development Cooperation Agency, amid an event held at the Ministry of Finance on Thursday.

Earlier, Deputy Prime Minister and Minister for Finance Bishnu Prasad Poudel appealed to the Chinese authorities to convert the loan into a grant. Stating that China is Nepal’s good neighbor, Poudel said he was confident that China would fulfill Nepal’s request considering the country’s economic situation.

Finance Secretary Dr Ram Prasad Ghimire and Chinese Ambassador to Nepal Chen Song were also present at the event.

The government signed an agreement with China’s Exim Bank for a concessional loan of approximately Rs 25.88 billion for the construction of Pokhara International Airport on March 21, 2016. The construction work began on January 11, 2017, and the airport was formally inaugurated on January 1, 2023.

The airport, however, has not seen any scheduled flights since its inauguration.