Tulasi Sitaula, a former government secretary, said the government should have ensured that the United States continued to fund the preparatory work in accordance with the agreement. Since the Nepalese government did not ratify the agreement, the Ministry of Finance requested an extension of the ratification period. Prithvi Man Shrestha is a political journalist for the Kathmandu Post that deals with government issues such as corruption and irregularities in the government machine. Before arriving at the Kathmandu Post in 2009, he worked for three years at nepalnews.com and Rising Nepal. Nepal was the first South Asian country to qualify for the pact after completing 16 of the 20 political indicators. In September 2017, Secretaries of State Baikuntha Aryal and Jonathan Nash, Chief Executive Officer of the MCC, signed an agreement in Washington in the presence of Gyandera Bahadur Karki, then Minister of Finance, and U.S. Assistant Secretary of State John J Sullivan. The U.S. government has agreed to provide $500 million in grants, while Nepal would provide $130 million for the project, which prioritizes energy and roads. This is the largest grant Nepal has ever received.
The United States is generally not cautious. She made it clear that the MCC was part of the Indo-Pacific strategy. Many in Nepal therefore view the GCC agreement as a violation of the constitution of Article 51 M of Nepal, which imposes a strong principle of non-alignment on the country. 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. Section 2.7 makes it clear in Section 2.7 that funds cannot be used for the military, but some readers consider Section 6.8, which provides immunity for MCC employees in „all courts in Nepal,“ and fear that this could be used for military purposes. There is no doubt that diplomats should continue to enjoy diplomatic immunity, but should immunity be granted for other activities? Isn`t that a violation of Nepal`s sovereignty? The Millennium Challenge Corporation (MCC) Compact is a „agreement“ first proposed in July 2017 between the U.S. authority and the Nepalese government, which promises $500 million in funding to „increase electricity availability and reduce transportation costs – and help stimulate investment, accelerate economic growth and reduce poverty.“ Fourth, a nationalist criticism of the MCC characterizes the violation of Nepal`s sovereignty as a key element within the GCC, as the pact requires the government to approve the parliamentary agreement. In the time of aid and the influence of transnational forces, sovereignty is a controversial concept. In accordance with the MCC Compact agreement between the MCC and the Nepalese government, the pact remains in force five years after it enters into force until its termination.