Prime Minister Deuba criticised the Maoists for targeting innocent civilians and also political activists for putting pressure on the government.

BBC: Nepal emergency ruled out

In parliament a faction lead by a former prime minister, Girija Koirala, opposed Mr Deuba's attempts to extend the emergency regulations.

ECONOMIST: A general election is called

He adds Mr Deuba is even facing dissent within his own party, but should be able to muster the needed two-thirds majority for the extension.

BBC: Nepal PM urges emergency extension

Yet even as the new money was giving a shine to the country's ailing finances, cracks were appearing in Mr Deuba's own, fissiparous, Nepali Congress party.

ECONOMIST: A general election is called

This week, the country's ousted prime minister, Sher Bahadur Deuba, appealed to the Supreme Court against his imprisonment on corruption charges by an extra-judicial tribunal, the Royal Commission on Corruption Control.

ECONOMIST: The king's autocratic methods worsen Nepal's crisis

Instead, Mr Deuba's fully legal election decision gives him a six-month breathing space as head of an interim government, free of political interference, even though his party has tried to make things difficult by expelling him for three years.

ECONOMIST: A general election is called