Kathmandu- Prime Minister KP Sharma Oli has said Nepal should not rely heavily on the U.S.-funded Millennium Challenge Corporation (MCC) project, warning that current global uncertainties could jeopardize its continuation.

Addressing a UML Parliamentary Party meeting in Kathmandu on Saturday, Oli noted that while there is a chance projects in a few countries, including Nepal, may proceed, it remains uncertain. 'The world order is unsettled. Although there is hope, we must be prepared for the possibility that MCC may not continue here—or anywhere,' he said.

Oli’s remarks follow reports that a U.S. government mechanism, established under President Donald Trump to curb public spending, had recommended terminating the MCC. 

Some media outlets, citing MCC officials, reported ongoing projects could still survive in four countries.

The Prime Minister stressed that unilaterally scrapping an agreement ratified by both nations would be diplomatically unjust. 

'If MCC falls through, we endure—though that’s not ideal,' he said. "International agreements stand above domestic law. The U.S. Senate approved it, and so did we, at their request. We’ve already completed land acquisitions and incurred liabilities.'

Nepal has formed a development committee under the MCC, with work underway on electricity substations, transmission lines, and road upgrades. 

So far, projects worth at least Rs 30 billion are in progress.