The decision was taken to adjust the price of the gold after the Indian government raised its duty on the metal in its recent budget announcement.[break]
The difference in the prices of gold in Nepal and India had raised the prospect of gold smuggling.
The cabinet also objected to the remarks by UN Under Secretary General for Political Affairs B. Lynn Pascoe who had said that the criticism of the UN Mission in Nepal (UNMIN) was unfair and "absurd".
He had also said the political parties criticized the UN special mission to cover up their failures.
The government asked Pascoe to mind his remarks and adhere to diplomatic norms.
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