The veteran Nepalese politician became Nepal's prime minister for the fourth time in May previous year after the main opposition party made a decision to end the obstruction of parliament. 70-year-old Deuba replaced Prachanda, a former rebel commander, as prime minister after a parliamentary vote. Previous PM Sher Bahadur Deuba resigned after the poor electoral performance of his Nepal Congress Party. This led corruption prevail in Nepal and the nation saw no growth.
A country of 28 million people, Nepal is an attractive market for Indian and Chinese goods.
Oli claimed the top executive post with the support of the Left alliance which had garnered a majority victory in the elections held in two phases on November 26 and December 7.
Oli blamed the blockade on Delhi and tilted Nepal's diplomatic relations towards China, stoking nationalistic sentiment.
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Nepali democracy has struggled to achieve stability since parliamentary representation was introduced in 1990. Nepal has transformed from a Hindu Monarchy to a Federal Republic.
The swearing-in was held 69 days after the completion of elections to the federal and provincial assemblies. The other three are appointed by the president of Nepal.
He was administered the oath of office and secrecy by President Bidya Devi Bhandari during a ceremony at the President's Office and named two CPN-UML lawmakers as members of his cabinet.
Oli has said he will promote peace, stability and development in one of the world's poorest countries where revolving-door coalitions have sapped business confidence, curbed growth, spurred corruption and slowed reconstruction after a 2015 quake that killed 9,000 people. Now, he has reached to the post following the support from the same party.