Kathmandu, July 1 -- The United States has reminded Nepal that funding under the Millennium Challenge Corporation's Nepal Compact is not open-ended and has urged the government and the political parties to take "tangible, near-term steps" to ensure its viability.

The statement sends a clear message that the US is looking for an early decision from Nepal regarding whether it will accept the $500 million US grant, say analysts.

According to Shankar Sharma, an economist and former Nepali ambassador to the United States, the statement from the US embassy in Nepal suggests that the US is still ready to wait but wants an early resolution.

The US Embassy in Nepal in a statement released on Monday, just ahead of the expiry of the implementatio...