Integration of Maoists combatants into the Nepal Army (NA) has become a contentious issue. Despite the Constituent Assembly (CA) elections and the declaration of Nepal as a Republic, a new government has not been formed. The Nepali Congress (NC) and the Communist Party of Nepal (UML) have been demanding adjustments and rehabilitation of the combatants through a proper modality before the CPN-Maoist forms the new government. The Maoists, on other hand, demand ‘collective’ entry of UNMIN-verified armed cadres into the NA.

“[China] feels that the Himalayas alone in this nuclear age are not enough to guarantee its national security, especially in view of Tibet’s strategic location. [It], therefore, ideally wants a China of small, preferably pro-Chinese, neighbours on the cis-Himalayan region separating the two Asian giants.”

- Dawa Norbu

The Communist Party of Nepal-Maoist (CPN-M), a former rebel group, emerged as the largest political party with 220 seats in the April 10 Constituent Assembly (CA) elections. Mainstream political parties like the Nepali Congress (NC) and CPN-UML secured the second and third positions with 110 and 103 seats, respectively. For the first time, a newly formed regional political party, Madhesi Janatantrik (Democratic) Forum has secured fourth position in the elections.

In January 2007, the House of Representatives in Nepal, restored after the people's movement of April, 2006, unanimously adopted an interim Constitution and dissolved itself. This technically paved the way for Maoist insurgents to enter a new and reconstituted interim parliament. Clearly a political landmark of tremendous import, Nepal's political transition has been accompanied by the initiation of a nascent disarmament process.

Despite the cease-fire, the Nepalese Maoists are busy collecting illegal taxes, besides carrying out abductions, extortion and forceful recruitment. They are consolidating their bases in urban areas where they had a very poor presence till April 2006, and are recruiting new cadres with the objective of setting up a communist society, if the peace talks fail. In the last four months, the strength of the Maoist armed cadres has increased from 29,000 to 35,000. While the Nepal Army is confined to its barracks, the Maoists are reportedly carrying their arms and moving freely.

Despite the King's proclamation and the subsequent end to the 19-day anti-Monarchy protests by the seven party alliance (SPA) on April 25, 2006, Nepal is still not sure of peace and stability. The difference between the SPA and the Maoists on the new constitution seems to be the biggest challenge before the Koirala Government. Although the Maoists have declared a three-month ceasefire, they have refused to surrender their weapons before or during the elections to a Constituent Assembly.