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Significance

The impasse ended with an agreement on forming a probe commission. Prime Minister Pushpa Kamal Dahal (‘Prachanda’) is trying to manage the fallout from other controversies as well, besides striving to maintain unity in the governing coalition and sustain balanced diplomacy.

Impacts

Growing political instability could distract the government from addressing key economic issues as well as diplomatic quandaries.

India-China rivalry for influence in Kathmandu will intensify as Delhi and Beijing struggle to tone down their differences.

The international community will expect Nepal to do more to show its commitment to transitional justice linked to the 1996-2006 civil war.

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