Key issues in Nepal threaten ruling coalition government again
Story highlights
There has been a widespread debate and discussion on the Millennium Challenge Corporation’s (MCC) Nepal Compact which offers $500 million in grants to Nepal for the construction of transmission lines and road maintenance projects
A six-month-old government, formed in July 2021, after Nepal witnessed political turmoil is once again being questioned as it stands divided on major issues.
There has been a widespread debate and discussion on the Millennium Challenge Corporation’s (MCC) Nepal Compact which offers $500 million in grants to Nepal for the construction of transmission lines and road maintenance projects.
The five-party ruling coalition led by the Nepali Congress appears desperate to endorse the MCC through the current session of the federal parliament, while the coalition partners, the CPN-Maoist Centre and CPN-Unified Socialist oppose the compact.
Since the beginning, Prime Minister Sher Bahadur Deuba has been bidding for the compact. However, due to differences among the ruling alliances, Nepal has failed to ratify the compact in the parliament.
As PM Deuba is failing to pass it through an understanding with the coalition partners, he is now seeking support from the opposition CPN-UML party led by KP Sharma Oli who has hinted to extend his party's support if Deuba breaks ties with the coalition partners.
On January 8, PM Deuba met Oli to discuss the solutions to stop the parliament obstructions that the opposition is creating since October.
The UML has maintained that it will make its position clear on the MCC only after the coalition government takes a decision.
The CPN-Maoists, during its recently held national convention, endorsed a document that said the compact will be approved only after amendments and only based on broad political consensus.
It has been five years since the government reached an agreement with the US. Multiple governments, including that of the Nepali Congress, the CPN-UML, and the Maoists, all worked and negotiated with the MCC to present Nepal’s proposal.
Then Finance Minister Gyanendra Bahadur Karki, who is currently the Communication and Information Technology Minister, signed the MCC Compact on behalf of Nepal in 2017.
The MCC is not only the issue threatening the coalition government, but also the decision on local election dates.
After a lot of flip-flopping, the government has made a decision on the election after coalition parties, the Maoist Centre and CPN-US tried to delay the polls as they do not have a stronghold at the local level.
A meeting of the senior leaders of the ruling coalition held at PM Deuba’s official residence in Baluwatar on Saturday decided to suggest the government hold the local level elections by mid-June, government spokesperson and Minister for communication and information technology Gyanendra Bahadur Kati said.
The debate over the local polls began by Maoist Centre chair Pushpa Kamal Dahal after he proposed parliamentary elections in April-May instead of local elections.
The Election Commission has been saying that the local level elections should be held within May 19, 2022, as the tenure of the local representatives will expire on that day.
However, PM Deuba is yet to announce the dates of the polls.
