Nepal under a veteran communist leader K P Sharma Oli will follow a ``neutral’’ foreign policy focused on securing national interests and territorial integrity, while not allowing anyone to use its territory to target any third country, according to Oli’s party CPN (UML). However, Oli will likely press India to address outstanding issues like the border dispute and trade imbalance, a top party functionary told Link of TOI

While the latest round of what has come to be known as Nepal’s own game of thrones has again thrown up Oli as the head of government, India may not necessarily be disquieted by the return of the ``pro-China’’ leader. Nepal

For one, Oli will form a government with support from the India-leaning Nepali Congress (NC), the largest party in the House of Representatives with 89 elected seats.

NC and Oli’s party, which has 78 seats, struck a powersharing agreement that will see the 3-time PM assuming the office again for 21 months, followed by Congress’ Sher Bahadur Deuba for the remaining period. Oli’s previous term is remembered for the political row with India over Nepal’s new map that claims territory in India’s Uttarakhand.

However, while India’s ties with NC help hedge against unexpected developments in a political environment fraught with rent-seeking and individual interests, Oli himself worked as PM to ramp up economic ties with India, for example by launching the largest hydropower project in the country with Indian PM Narendra Modi. The Indian PM visited Nepal twice with Oli as his counterpart.

Nepal, CPN (UML) head of foreign policy department Rajan Bhattarai told ToI. ``We have multi-dimensional ties with India which has an important role to play in realizing (Oli’s) Prosperous Nepal, Happy Nepali goal,’’ said the official, while ruling out any dramatic shift in Nepal’s approach to India or China. A

According to Bhattarai, however, pending issues related to the border, trade deficit, water and transit must be addressed. Nepal’s position on the dispute over the Kalapani area, which is of strategic significance because of its location at the India-China- Nepal trijunction, will remain the same as he said that while Nepal is ready to listen to the Indian side and have ``open-minded’’ discussions, it’s important to heed ``historical facts’’. Bhattarai reiterated Nepal’s position that as per the 1816 Treaty of Sugauli, all territories east of the Kali river, including Limpiyadhura, Kalapani and Lipulekh, belong to Nepal.

On the controversy over Nepal’s decision to issue a new political map showing the disputed areas in Nepal, the official reiterated then Oli government’s action was in response to India’s new map, issued after the reorganisation of J&K, that included Nepal’s territory in it.

While Nepal has delayed signing the implementation plan for China’s BRI, it’s unlikely Oli or any other leader in the near future will review Kathmandu’s decision to join the initiative in 2017. However, financing remains an issue amid warnings that Nepal must avoid slipping into a Chinese debt trap.

The NC strongly maintains it wants only grants, and not loans, to finance BRI projects. Bhattarai said modalities for financing of projects will be discussed with NC before any decision is taken on implementation.

``Nepal joined BRI when P K Dahal Prachanda was PM with support from NC. Once an agreement like that is signed, it becomes an obligatory matter,’’ said the official, ruling out any withdrawal from BRI. .