However, another part of the ruling party, led by Prime Minister KP Sharma Oli, has defended the pact and wants the current session of the House of Representatives to ratify it. Nepal`s Primary Congress also voted in favour of immediate approval of the agreement. The meeting was not able to reach an agreement and the decision on the matter was handed over to the party secretariat. Some have said that the sabre-rattling in the Central Committee was merely a populist pose to appear nationalist. In practice, it is not only natural for Nepal to find a middle ground to resolve the MCC dilemma. The governments of Nepal and the United States should explore spaces where both can see a win-win situation. It is hoped that, as a strong advocate of democracy, the U.S. government may consider taking into account certain changes or other clarifications in the agreement in response to the public outcry, in order to facilitate the implementation of this project. It may consider making amendments and clarifications that are acceptable to both parties; and if they cannot be included in the contract, they may be attached to it in the form of a mention. I think the GCC agreement with Nepal is a trap for Nepal. This may be a very nice opportunity for today, but it will make situations even more boring later, we will lose our rights in our own country. This is the worst scene I can imagine.
$500 million in funding, supported by the U.S. government through its humanitarian organization Millennium Challenge Corporation (MCC) in Nepal, continues to spark lively discussions in Nepal`s political and economic sectors. The grant agreement, dubbed the Nepal Compact by Millennium Challenge Corporation, signed by the two governments in 2017, requires Nepal to contribute an additional $130 million at the total cost of the $630 million project. Since the agreement has yet to be ratified by Parliament, the ruling Communist Party of Nepal is in the spotlight because of its internal dispute over the issue. First, the subsidy is linked to the U.S. government`s indopapacific strategy, which is part of a U.S. defense strategy in the Indopapacific region to offset Chinese influence. U.S. officials also stated that the Indopapacific Strategy has a defence component and that development assistance, channelled by the MCC, could be used to support the countries participating in the regime.