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Nepal Government writes to the United States requesting clarification on the ‘disputed’ issues of the MCC

(File Photo: Nepal’s Minister of Finance Gyanendra Bahadur Karki, seated left, and acting CEO of Millennium Challenge Corporation Jonathan Nash, seated right, sign the Nepal Compact on Thursday, Sept. 14, 2017 in Washington, D.C. Photo: Steve Ruark for MCC)

N24 Correspondent, KATHMANDU:- The Government of Nepal has written to the United States requesting clarification on the contentious issues of the Millennium Challenge Corporation (MCC) agreement. The Ministry of Finance has written a letter requesting to clarify some of the vague points mentioned in the agreement.

The letter sought to clarify whether the MCC was part of the US Indo-Pacific Strategy and whether the MCC was linked to US security policy. It is also requested to clarify whether the MCC agreement is subject to the law of Nepal and whether it has to be passed by the parliament.

The letter requested to clarify the points raised in the audit system. The government wrote the letter just before MCC vice-president Fatima Sumar arrived in Nepal.

The Memorandum on MCC, signed by Nepali and US officials on April 5, 2017, was signed by Baikuntha Aryal, Joint Secretary of the Ministry of Finance on behalf of Nepal and Fatima Sumar on behalf of the MCC. Nepal then signed the MCC agreement in 2017.

These are the countries where MCC Compact is implemented

The United States has been supporting various countries around the world through the MCC with the aim of supporting economic development. So far, this compact has been implemented in about a dozen countries of the world.

Regarding Nepal, various concerns have been raised about Nepal Compact. But looking at the past history of the MCC, it seems that the project has been implemented in terms of economic development of the country without looking at any geopolitical or other kinds of situation.

So far, the United States has worked on MCC projects in about 79 countries. Work has been done on 47 compact and 31 thresholds. After a country has initially passed the threshold, the United States passes a compact for that country.

The letter was written by the government just before the arrival of MCC Vice President Fatima Sumar in Nepal. Sumar is also scheduled to meet top leaders of various political parties, including Prime Minister Sher Bahadur Deuba.

The US Embassy in Kathmandu has confirmed that it has received a letter from the Ministry of Finance regarding the MCC grant. “This is a positive step for MCC approval and the MCC is ready to have an open and transparent discussion with the Nepali people,” an embassy official told

The agreement of the Millennium Challenge Corporation (MCC), which was registered for approval on July 15, 2019, is still under consideration in the House of Representatives.

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