The county and its 29 million people also face the threat of climate change as its spectacular Himalayan range is imperilled by the retreat of the glaciers.

In its two year mandate, the Assembly was given the task of drafting a new Constitution, enshrining the federal and democratic character of the country. This deadline is now seen as impossible to meet and it is unclear whether the Maoist opposition will agree to an extension of the Assembly's mandate for a further 6 months. Should it refuse to do so, it is feared the constitutional vacuum may lead to increasing political instability.

The country, which includes Mount Everest, lies strategically located between two powerful neighbours, China and India. The Nepalese people are poor with an estimated half of the population living below the poverty line.

During the 23-29 May visit MEPs held talks in Kathmandu with members of the Constituent Assembly and its Chairman Subash Nemwang. Members also met environmental and development NGOs whilst in Nepal.

MEPs discussed refugee issues with Nepalese officials. They assessed the resettlement of Bhutanese refugees to other countries as smooth, visited a Tibetan refugee transit centre and had the opportunity to verify that Nepal is honouring the "gentlemen’s agreement" it concluded on the refugee question with the UNHCR.

Himalaya's vital water feed for millions

MEPs saw the retreat of the glaciers when they visited the 19,000 foot Imja glacier by helicopter. The leader of the delegation, British Green Jean Lambert said the "retreat of some glaciers and the growing glacial lake show some of the ecological pressures, which will increase economic pressures".

She added, "we need to take rapid action on climate change to support not only Nepal but other countries in the region dependent on water fed from the Himalayas".

The members of the delegation are part of Parliament's delegation for Relations with South Asia.