Those of you who follow the Nepalese political situation will be aware of the recent disruptions in Parliament. I am happy to announce that these may be coming to a close with a preliminary agreement with United Nepal Community Party (Maoist) regarding the resumption of the Parliament.

The key political parties finally struck a deal on Monday, ending the political deadlock, but at the time of writing not a single bill has been tabled. Every day protest marches, strikes and mass meetings are being organized in different parts of country, while widespread abduction, killing and crime add to the atmosphere of general confusion.

Dramatic Changes

The new budget session of the Parliament begins today (Wednesday 8th July). Since the Nepalese fiscal year starts from 16th July, the government is rushing to prepare the budget in time. In addition, there is huge pressure to subsidise food for the poor: the new Indian budget (presented two weeks ago) made such a provision, providing a kilo of rice at Rs 3.  Currently, the Nepalese are pay Rs 30 for the lowest quality rice.

But there is little hope of a relief package in the new budget.  This is because of the lack of revenue and also because of the continued disruption of the Parliament and strikes in the Industrial Sector. Despite this, the new agreement to end the political deadlock and to make the Parliament session proceedings has generated new hope for the peace and political process of Nepal.

What will be the impacts of these events on the IHP+ process?

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