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Nepal PM Prachanda refuses to resign as Oli set to return to power after overnight power-sharing deal

The Nepali Congress and CPN-UML parties led by former PMs KP Sharma Oli and Sher Bahadur Deuba struck a midnight power-sharing deal to oust Prachanda from power. As per the deal, Oli will serve as PM of the new government for 1.5 years while Deuba will take the reins for the remaining term.

Edited By: Aveek Banerjee @AveekABanerjee Kathmandu Published : Jul 03, 2024 7:06 IST, Updated : Jul 03, 2024 7:06 IST
Nepal Prime Minister Pushpa Kamal Dahal 'Prachanda'.
Image Source : PTI (FILE) Nepal Prime Minister Pushpa Kamal Dahal 'Prachanda'.

Kathmandu: As drama unfolded in Nepal's political landscape with the two largest parties forming an overnight coalition deal to oust the current government from power, Prime Minister Pushpa Kamal Dahal has refused to resign from his position, saying he would like to go for another confidence vote in the Parliament, which would be his fifth if it happens.

The 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 Dahal's CPN Maoist Centre, nearly four months after KP Sharma Oli's party joined the ruling coalition. The agreement was signed at midnight on Monday by Nepali Congress president Sher Bahadur Deuba and CPN-UML chairman Oli, as per local reports.

Deuba, 78, and Oli, 72, - both former PMs - agreed to share the Prime Ministerial position on a rotation basis for the rest of the term of the Parliament, said ex-foreign minister Narayan Prakash Saud, who is part of the Nepali Congress. The CPN-UML has 78 seats in the 275-member House of Representatives while the Nepali Congress has 89. Their combined strength is 167, more than the 138 seats required for a majority.

How did Prachanda react to the agreement?

The CPN-UML on Tuesday urged PM Prachanda to step down from the position so that a a new government can be formed as per the constitutional provision. It also asked all the political parties to join the “national government” under the leadership of Oli to bolster political stability in the country.

However, Prachanda refused to step down despite the agreement between the Nepali Congress and CPN-UML. He told his party's office-bears in a meeting that he would rather face a vote of confidence in the Parliament than resign from the post, the CPN Maoist Centre party secretary Ganesh Shah told news agency PTI. Shah said quoting the PM that a conspiracy had been hatched to topple the government and create instability in Nepal.

Prachanda, 69, a former guerilla leader, has won four votes of confidence in Parliament during his one-and-a-half-year term. His support has notably declined in successive confidence votes. Oli and Prachanda formed a power-sharing formula on March after the latter had a falling out with the Nepali Congress. 

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. 

What is the agreement between Oli and Deuba?

The midnight deal to form a new 'national consensus government' in the politically fragile Himalayan nation was aimed at ousting Prachanda from power. Oli and Deuba 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.

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 till the next election, 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 government will be formed to maintain political stability in the country and make necessary amendments to the Constitution.

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 was prepared by a four-member task force.

(with inputs from agencies)

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

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