Nepal will hold national and provincial elections on Sunday, which the ruling coalition, led by the centrist Nepali Congress party, are expected to win.
About 18 million people are eligible to vote for the 275-member parliament, as well as the 550 members of seven provincial assemblies through a mix of first-past-the-post and the proportional representation system.
Here are key issues that will determine how Nepalis vote:
SLOWING ECONOMY AND HIGH INFLATION
Economic growth in the Himalyan nation, wedged between Asian giants China and India, has slowed due to rising energy and food prices and monetary tightening. About one-fifth of country's people, who live on less than $2 a day, have been hit hard by high inflation - hovering over 8% this year.
Tourism, which accounted for 4% of GDP before the COVID-19 pandemic, has yet to fully recover. In the first 10 months of this year, over 450,000 tourists visited Nepal, less than half the number of pre-COVID visitors in all of 2019.
There are also fears that a global recession might reduce remittances from Nepalis working overseas and which accounts for about a quarter of GDP.
The $38 billion import-dependent economy is expected to expand 4.7% in the current fiscal year that began mid-July, according to Asian Development Bank (ADB), down from the previous year's estimate of 5.8%.
Gross foreign exchange reserves fell 0.6% to $9.48 billion in mid-October from $9.54 billion in mid-July this year - sufficient to cover imports for just over 8 months, central bank data showed.
ELECTION PROMISES
Political parties have promised to bring down interest rates, provide free medical services, improve transportation and boost the economy over the next five years.
The Nepali Congress party has promised to create 250,000 jobs every year if it returned to power while the main opposition Communist Unified Marxist-Leninist (UML) pledged to create 500,000 jobs every year.
Nepal is one of the world’s poorest countries and its economy depends on foreign aid, tourism and remittances of its overseas workers. Western aid comprises more than 30% of the annual budget.
POLITICAL STABILITY
Political stability has proven elusive for the poor nation, wedged between China and India, discouraging many investors. Nepal has had 10 different governments since the abolition of a 239-year-old monarchy in 2008.
Nepali's three major parties - Nepali Congress, the Communist UML party and the Maoist Centre - have all led different coalitions in the past but none have served the full five-year term due to power struggles and infighting.
Eighty percent of Nepalis are Hindus, with the rest Buddhists, Muslims and Christians.
MAIN CONTESTANTS
Prime Minister Sher Bahadur Deuba, who leads the Nepali Congress party, has allied with the Maoist Centre party, the main group of former Maoist rebels. Deuba, 76, is seeking to return to power for the sixth time. His Nepali Congress party is considered the closest to India.
UML led by 70-year-old K.P.Sharma Oli, is in a loose alliance with a royalist group. Oli, known for his pro-Beijing stance during previous terms, is favourite for the prime minister if his alliance wins. He has been prime minister twice before.
The Maoist Centre party led by supremo Prachanda could emerge as a kingmaker in case of inconclusive elections. Prachanda, who still goes by his nom de guerre meaning fierce, is also aspiring for the top job.
Results are expected within two weeks.
CHINA, INDIA INTEREST
Neighbouring China and India, with their strategic and economic interests, will be watching the election results. China has signed infrastructure projects with Nepal under its vast Belt Road Initiative (BRI) and envisages to link Kathmandu with Lhasa through a trans-Himalayan railway network. Neighbouring India has long had strong ties with Nepal. The United States is also now a major development partner.
(Reporting by Gopal Sharma; Writing by Manoj Kumar; Editing by Miral Fahmy)
