Wednesday, July 1, 2026 07:08 AM

MCC makes future of ruling coalition uncertain

Kathmandu, 1 February: The future of the ruling coalition is uncertain as the US aid Millennium Challenge Corporation’s (MCC) grant agreement enters a decisive phase. Prime Minister Sher Bahadur Deuba has taken decisive initiative to get the agreement endorsed by the parliament immediately, while his colleagues are adamant that the agreement will not be ratified in status quo.

Prime Minister Deuba has informed US officials that he will give a formal reply of the Parliament on MCC by February 28. Meanwhile, CPN Maoist Center Chairman Pushpa Kamal Dahal and CPN (Unified Socialist) Chairman Madhav Kumar Nepal have stated that the agreement cannot be ratified immediately. Voices are being raised against the agreement within both the left parties.

Leaders of the ruling party Congress and alliance partner Maoists and socialists claim that the MCC will not break the coalition. However, they are reiterating their position on MCC. In the meantime, Deuba has reached the position of choosing MCC or alliance. Similarly, the left parties are also worried that they must leave the government if they oppose MCC. Dahal and Nepal have put a new condition with Deuba that local elections cannot be held in May if MCC is ratified. If the Dahal and Nepal go against it, the coalition will collapse.

As the chairman of the main opposition CPN-Khadga Oli has openly demanded with Deub to remove Speaker Agni Prasad Sapkota and break the ruling alliance to endorse MCC, it is likely that Deuba and Oli form a new government if Nepal and Dahal pull out of the coalition. Media reports suggest that Deuba is using multiple channels to convince Oli for the ratification of the controversial agreement­-the MCC.

People’s News Monitoring Service

Conversation

Login to add a comment