Nepal, Sept. 17 -- The government's decision to appoint Yubaraj Khatiwada, who resigned as the finance and communication minister earlier this month, as prime minister's special economic adviser can create more rifts in the ruling Nepal Communist Party while having a profound impact on governance as well, insiders and analysts say.

A Cabinet meeting on Monday decided to appoint Khatiwada as Prime Minister KP Sharma Oli's special economic adviser.

"Khatiwada has been appointed special economic adviser to the prime minister with benefits on par with a minister," said Foreign Minister Pradeep Gyawali, who is also the government spokesperson, at a press briefing on Tuesday evening.

Party insiders say the move to bring Khatiwada back as Oli...