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Nepal government in crisis again: Oli to return as PM after midnight coalition deal with Nepali Congress

Nepali Congress president Sher Bahadur Deuba and CPN-UML chief and former PM KP Sharma Oil struck a midnight deal to oust Prachanda from power. As per the deal, Oli will become PM again for 1.5 years while Deuba will take the helm for the remaining 1.5 years till the next election.

Edited By: Aveek Banerjee @AveekABanerjee New Delhi Published : Jul 02, 2024 10:49 IST, Updated : Jul 02, 2024 11:17 IST
Nepal government
Image Source : X Former Nepal PM KP Sharma Oli and Nepali Congress leader Sher Bahadur Deuba.

Kathmandu: In another unprecedented twist in Nepal, two of the largest parties - Nepali Congress and the Communist Party of Nepal (Unified Marxist-Leninist) (CPN-UML) - have struck a midnight deal to form a new alliance to oust Prime Minister Pushpa Kamal Dahal 'Prachanda' from power, as per reports citing leaders from both parties. This came just over a month after Prachanda won the vote of confidence for the fourth time.

The agreement was signed at midnight on Monday by Nepali Congress president Sher Bahadur Deuba and Communist Party of Nepal-Unified Marxist Leninist (CPN-UML) chairman and former PM K P Sharma Oli, and is expected to be made public on Tuesday, as per local media reports. As per the deal, Oli will lead the government for one and a half years, after which he will transfer the power to Deuba for the remaining 1.5 years until the next election.

Deuba, 78 and Oli, 72, also met on Saturday to lay the ground for a potential new political alliance between the two parties, following which Oli's CPN-UML ended its association with the Prachanda-led government barely four months after extending support to it, according to The Kathmandu Post. The two leaders agreed to form a new government, amend the Constitution and work out a power-sharing formula.

Additionally, eight ministers from the CPN-UML in the Nepal government are set to resign from their posts after the midnight overhaul in the ruling alliance. "Our ministers will tender their resignation to the Prime Minister today itself. The Prime Minister also might step down from his post soon enough weighing the situation. A new government is expected by evening," Mahesh Bartaula, Chief Whip of CPN-UML, told news agency ANI.

What is the 'national consensus' government?

The midnight deal to form a new 'national consensus government' in the politically fragile Himalayan nation was aimed at ousting Prachanda from power. Under the agreement, Oli will lead a new ‘national consensus government' for a year and a half. Deuba will be the prime minister for the remaining term, a report by news agency ANI quoted a Nepali Congress leader as saying.

Under Oli's tenure, the CPN-UML will take control of ministries, including the Prime Minister's position and the Finance Ministry. Similarly, the Nepali Congress will oversee ten ministries, including the Home Ministry. The CPN-UML will be forming a government in Koshi, Lumbini and Karnali provinces while the Nepali Congress will lead the Bagmati, Gandaki and Far-Western provinces, the leader further informed.

The new alliance has also formed a committee to give suggestions on amending the election procedures and the constitution under the leadership of former Chief Justice Kalyan Shrestha. A draft agreement detailing the power-sharing arrangement, proposed amendments to the Constitution, reviews of the electoral system and discussions over the size of provincial assemblies is expected to be released today.

Prior to the signing of the overnight agreement, leaders from the Congress as well as the UML also reached President Ram Chandra Paudel and informed him about the change in the coalition. There has been no reaction from Dahal's party, which earlier insisted that it was in touch with the Oli-led party. The Nepali Congress has 89 seats in the 275-member House of Representatives, whereas CPN-UML and CPN-Maoist Centre have secured 78 and 32 seats, respectively. 

13 Nepal governments in 16 years

It is pertinent to mention that Nepal has had 13 governments in the last 16 years, indicating the fragile nature of the Himalayan nation's political system. Dahal, who came to power after the 2022 general elections, has had to take the floor test at the parliament a record four times. The Prime Minister is required to take a vote of confidence within 30 days if the party the Prime Minister is representing splits or if a member of the coalition government withdraws support. Oli and Prachanda formed a power-sharing formula on March after the latter had a falling out with the Nepali Congress.

A new coalition including the CPN-UML, CPN-Maoist Center, Rastriya Swatantra Party, and Janata Samajwadi Party was initially formed. The Janata Samajbadi Party Nepal walked out of the government after the formal split and now is in opposition. Prachanda's support has notably declined in successive confidence votes.

Differences between Oli and Prime Minister Prachanda had been steadily building, and Oli was unhappy with the recent budget allocations made by the government for the fiscal year 2024-25, which he had publicly spoken about. Worried by the closed-door meeting between Deuba and Oli, Prachanda had gone to meet Oli to assure that the government is serious about addressing issues raised by CPN-UML, including its concern about the new budget, observers said.

During their meeting on Monday morning, Oli reportedly requested Prachanda to support him by stepping down. Prachanda offered Oli the post of prime minister within the current ruling coalition, which the latter turned down, expressing his desire to lead a consensus government, a report cited a party leader as saying. 

(with inputs from agencies)

ALSO READ | Prachanda again claims Kalapani, Limpiyadhura belong to Nepal, says PM Modi assures to resolve border issue

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