The Loktantrik Samjabadi Party has decided to vote in favor of the Millennium Challenge Corporation-Nepal Compact when it is put to a vote in Parliament.

A meeting of the Parliamentary Party of the Loktantrik Samjabadi Party on Wednesday afternoon decided to vote in favor of the MCC compact, according to leader Chanda Chaudhary.

The Parliament is all set to begin deliberations on the MCC compact on Thursday. Whether voting will take place on Thursday is not clear yet.

The MCC is a developmental project and the government is already involved in it so it should be moved forward, said Chaudary.

The party has 13 lawmakers in the House.

As the deadline to ratify the MCC approaches fast, there is still no clarity on whether it will be ratified or not.

The ruling alliance of five political parties is sharply divided over the issue while the main opposition, CPN–UML, the largest party in the House, is sitting on the fence. The UML, which has been obstructing the House, has put the condition of removal of Speaker Agni Prasad Sapkota to lift the obstructions and extend support to the government to ratify the compact.

"If the MCC is not ratified, there will be problems in Nepal's development grants in the future, so our party has decided to vote for the MCC," she said.

The government tabled the MCC compact in the House of Representatives meeting on Sunday.