Nepal’s new government, led by the former Maoist rebel chief, will try to balance ties with its immediate neighbours China and India as it seeks economic growth in one of the world’s poorest countries, officials of the ruling coalition told Reuters.
Pushpa Kamal Dahal, who still goes by his nom de guerre Prachanda, unexpectedly became Prime Minister for a third time on Sunday after leaving his previous coalition and securing the support of the Opposition Communist Unified Marxist-Leninist (UML) party and five other smaller groups. Last month’s election had returned a hung parliament.
The UML leader and former Prime Minister, Khadga Prasad Sharma Oli, is believed to be pro-China. Nepal is one of several South Asian countries where India and China both seek influence. India has long considered Hindu-majority Nepal, a Himalayan country of 30 million, as a natural ally based on their close historical ties and long open border.
“We’ll maintain relationships of equi-proximity with both our neighbours,” Narayan Kaji Shrestha, a senior member of Prachanda’s Maoist Centre party, told Reuters. Shrestha was later named as a deputy Prime Minister.
“We must immediately focus on containing inflation, maintain reserves, raise capital expenses, narrow the trade deficit and lower interest rates.” Prachanda also named six other ministers and gave the key finance portfolio to Bishnu Prasad Paudel of the UML party.
Paudel has been the finance minister twice before. Another key appointment is that of Rabi Lamichhane, a television talk show host, to the home (interior) ministry. Prachanda kept the foreign ministry for himself. Beijing and New Delhi have poured billions of dollars in aid and investment into Nepal, which is rich in potential to generate hydroelectric power.
