Kathmandu, Jul 14 (PTI) US Assistant Secretary of State Donald Lu on Friday met Nepalese Foreign Minister N P Saud and assured continued American assistance to the Himalayan nation as it graduates from the list of the Least Developed Countries.
During the meeting at Singhdurbar here, Lu and Saud discussed the implementation of USD 500 million MCC-Compact, which marks a new chapter in the US-Nepal Partnership aiming to increase the availability and reliability of electricity, improve roads, and facilitate power trade across South Asia, a statement from Nepal's Foreign Minister Secretariat said.
The two leaders also "discussed Nepal’s graduation from the list of LDC (Least Developed Countries) as well as bilateral interests of the two countries'', the statement said.
The US official assured Saud of the US government’s continued assistance to Nepal.
"The US government will, as an old development partner, continue its assistance to Nepal in future too,” the statement quoted Lu as saying.
According to the UN, Nepal is scheduled to graduate from the group of Least Developed Countries on 24 November 2026.
The Millennium Challenge Corporation (MCC) is an innovative and independent US foreign assistance agency that is helping lead the fight against global poverty.
The MCC-Compact aims to maintain road quality, increase the availability and reliability of electricity, and facilitate cross-border electricity trade between Nepal and India—helping to spur investments, accelerate economic growth, and reduce poverty.
Lu, who is on a day-long visit to Nepal, also appreciated the achievements made by a larger community of Nepalese residing in the US and their contribution to the US economy.
The two leaders also shed light on the importance of the exchange of high-level bilateral visits between the US and Nepal in the light of enhancing relations between the two countries.
The US Embassy in Kathmandu in the statement said: “US Assistant Secretary Lu is here in Nepal as part of his regular diplomatic engagement in the region.”
“Lu met with Prime Minister Pushpakamal Dahal Prachanda and expressed condolences on the demise of his wife Sita Dahal,” the US Embassy said.
“With Saud and former prime ministers K. P. Oli and Sher Bahadur Deuba, Lu discussed Nepal’s achievements on its Summit for Democracy commitments, the recent bolstering of human rights protections in Nepal, and the progress of the MCC-Compact to date, which will commence implementation in August and within the next five years provide essential electrical infrastructure, improve capacity for roads maintenance and creating thousands of jobs,” the statement said.
During his regional tour, Lu also visited Bangladesh and India besides Nepal.
“High-level diplomatic engagements are a routine part of strengthening both US- Nepal and regional partnerships in furtherance of a more secure, sovereign, prosperous, and democratic world,” said the US Embassy statement.