Nepali Congress and CPN-UML agree to oust Prime Minister Prachanda; formation of new alliance planned

The CPN-UML ministers in the Prachanda-led cabinet are likely to resign en masse this afternoon, sources close to the CPN-UML said.

CPN-UML Secretary Shanker Pokharel told media representatives that an agreement had been reached with the Nepali Congress to form a national government under the leadership of former Prime Minister Oli.

The new government is expected to maintain political stability in the country and make necessary constitutional changes.

Meanwhile, Prime Minister Prachanda is holding talks with CPN-UML chief Oli to discuss the latest political developments, sources close to the CPN-Maoist Centre said.

“Prachanda will not give up his post at this time. Nothing can be said until the talks between Prachanda and Oli are completed,” said Ganesh Shah, secretary of the CPN-Maoist Centre.

According to the agreement, the CPN-UML will take control of ministries, including the Prime Minister’s Office and the Finance Ministry, during Oli’s tenure, while the Nepali Congress will oversee 10 ministries, including the Home Ministry. MyRepublic The news portal reported this.

According to the agreement, the CPN-UML will lead the provincial governments in Koshi, Lumbini and Karnali provinces and the Nepali Congress will lead the provincial governments in Bagmati, Gandaki and Sudurpaschim provinces.

Oli and Deuba also agreed to include Madhes-based parties in the governance of Madhesh province and committed to constitutional changes.

The draft agreement was drawn up by a four-member working group. Kathmandu Post The newspaper reported.

According to a member of the task force, the plan is to detail the power-sharing arrangement, propose changes to the constitution, review the electoral system, including proportional representation, amend the rules for the National Assembly and discuss the size of the provincial assemblies.

The differences of opinion between Oli and Prime Minister Prachanda had been steadily worsening, with Oli unhappy with the government’s recent budget allocations for the 2024-25 fiscal year, about which he had spoken publicly.

Prachanda was concerned about the closed-door meeting between Deuba and Oli and had therefore met with Oli to assure him that the government was serious about addressing the issues raised by the CPN-UML, including its concerns over the new budget, observers said.

During their meeting on Monday morning, Oli reportedly asked Prachanda to support him by resigning, the report said.

A senior CPN-UML politician was quoted as saying that Prachanda had offered Oli the post of prime minister within the current coalition government, but Oli had rejected the offer, saying he would rather lead a consensus government.

Prachanda, 69, received three votes of confidence in parliament during his one-and-a-half-year term.