During 1990, growing public unrest brought the underlying political tension to the surface, and forced the King to make concessions on the introduction of representative government. Following negotiations between the Government and the newly legalised opposition parties, a draft constitution was promulgated in November 1990 which allowed for direct elections to a bicameral parliament. Despite an overall majority, Congress was unable to lead a stable government and the next election was brought forward from its scheduled date in 1996 to take place in November 1994. Recent foreign policy has been dominated by relations with India, which have improved since Nepal's larger neighbour imposed a trade embargo after the expiry of an old trade agreement. In February 1996, the two countries signed a treaty regarding the shared utilisation of the Mahakali River basin.
Some tension remains over border disputes.
Relations with Nepal's other large neighbour, China, have improved greatly during the early 1990s. Nepal has also had to face the problem of a large influx of refugees fleeing political strife in neighbouring Bhutan, which now approaches 100,000. Nepal is a constitutional monarchy.