Foreign Minister Gyawali has repeatedly denied that Nepal`s MCC is talking about the IPS. He said there was nothing to fear, as the implementation of projects under the MCC would be guided exclusively by the pact. The Nepalese Congress, under whose leadership the pact was signed for the first time, defends the same position. Congress says the government must abide by the agreement that does not talk about the IPS, regardless of what officials say, even American officials. Congress called on the government to prioritize the pact for the ratification of this house meeting of the House of Representatives and to extend its cooperation in this process. Opposition leaders have even warned that it would be “suicidal” for Nepal if Parliament rejected the pact, as it would have lasting consequences for diplomatic relations between Nepal and the United States. There are several cases of the United States partially or completely ending compacts for various reasons. The pacts for Madagascar and Mali were completely suspended, while those of Nicaragua and Honduras were partially withdrawn. In Mali, the end of the military coup followed at the end of March. In these circumstances, Nepal will have to give a lot of credibility to MCC. Somehow, even rewrite the laws of knowledge. In history, we saw MCC had agreements with Srilanka in our close vicinity, but MCC agreements were concluded with many countries in Africa and the Middle East as well. 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. 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.