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Significance

Pushpa Kamal Dahal (‘Prachanda’), leader of the Communist Party of Nepal (Maoist Centre), was manoeuvred out of the premiership after a tie-up between Oli’s party -- which withdrew from the Prachanda-led governing coalition on July 3 -- and Sher Bahadur Deuba’s Nepali Congress.

Impacts

An immediate priority for Oli will be to implement measures to boost the economy.

High-level corruption will remain a hot topic.

Continued political strife will make it hard for the government to concentrate on policy issues.

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