At the initiative of the Nepalese government, an agreement to improve roads and energy infrastructure was signed with the MCC, for which the United States agreed to provide $500 million in grants to the country. At the time the MCC pact was signed on September 14, 2017, the Government of the Nepal Congress (NC) was in power and the Maoist party at the time (later merging with the Communist Party of Nepal (Communist-Leninist Party) and the Nepal Communist Party was part of the coalition government. Anyone who has questions about what the MCC is – or not – can make these facts, all the reasons and all the data regarding MCC in Nepal, and a lot of information in mcc.gov 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, it is not confirmed whether Nepal, by the mere ratification of the MCC, would be part of the American military alliance and that it would oppose any third country. The pros and cons of the GCC could have been discussed before the country accepted it. Most skepticism about the MCC seems more favourable to domestic consumption than to realism. Nepal must demonstrate its intelligence, talents and courage to judge whether the MCC is really in the interest of the nation or not. If there were any doubts about this, why did Nepal sign an agreement with the MCC? The signing of the pact will take place on September 14, 2017 in Washington, D.C., between Nepal and the MCC, in the State Department`s contract room. Finance Minister Gyanendra Bahadur Karki and McC Chief Jonathan Nash have designated the compact agreement. The GCC pact does not say it must be ratified by Nepal`s parliament. However, the text of the agreement stipulates that in the event of a conflict requiring parliamentary ratification, the provisions of the pact will prevail over the laws of Nepal under the Treaty Act of Nepal.
The GCC is the first grant agreement that requires Parliament`s approval. However, it is also the largest grant agreement ever signed by Nepal. Since CMC financial assistance must be approved by the U.S. Congress, the U.S. government expects the same commitment from host countries.