NEW DELHI, June 8 (UPI) -- Amid threats from Maoist rebels, India and Nepal began talks on an emergency economic package to buoy the Himalayan nation.
The package includes both emergency and long-term components, outlined during a 40-minute meeting between Indian Prime Minister Manmohan Singh and his Nepalese counterpart Girija Prasad Koairala.
The Indian government expects the details of the deal to be announced on the last day of Koirala's visit, and may include aid for economic reconstruction and grants to help Nepal to overcome its liquidity crunch.
Koirala, who is on his first foreign visit after becoming prime minister of Nepal's Seven-Party Alliance government, apprised Singh of his nation's grave economic situation following months of political turmoil.
He said Nepal required assistance to fulfill its immediate and long-term needs. Singh affirmed these issues would receive the immediate attention of the Indian government.
"India hopes to finalize the details of the package before the end of the visit. It would be both long-term and immediate," said Navtej Sarna, spokesman for the Indian foreign office.
Sarna said Singh also informed Koirala about India's deep commitment to initiate large projects in social and economic spheres.
