Nepal to see new govt today? Oli strikes deal with rival Deuba to oust Prachanda

The Nepal government headed by Prachanda is expected to fall and a new coalition government led by KP Sharma Oli is likely take its place by as early as Tuesday (July 2). The development comes after a deal was agreed upon overnight by the Nepali Congress President and the Communist Party of Nepal (Unified Marxist-Leninist).

ANI quoted a senior leader from the Nepali Congress as saying that as per the agreement, under the coalition government, UML Chairman KP Oli Sharma will become the Prime Minister for the next one and a half years, and then Nepal Congress President Sher Bahadur Deuba will hold the post for until the next election.  

Pushpa Kamal Dahal alias Prachanda’s party - the Communist Party of Nepal - has been excluded from the new coalition government which is expected to be formed in the country anytime soon.  

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Prachanda formed a new alliance government on March 4. This change comes in less than 100 days.  

New government in Nepal expected by evening 

Hours after the pact was signed, reports started doing rounds on Tuesday that eight ministers from the CPN-UML in the Nepal government are set to resign during the day.

“Our ministers will tender their resignation to the Prime Minister today (June 2) itself. The Prime Minister might also step down from his post soon enough, weighing the situation. A new government is expected by evening,” ANI quoted Mahesh Bartaula, Chief Whip of CPN-UML, as saying.  

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Also, the CPN-UML has called for the party secretariat meeting at the party office around 3 pm on Tuesday.

Meanwhile, Prachanda is holding talks with office bearers to discuss whether to resign or face the vote of confidence in parliament, ANI quoted Ganesh Shah, a leader from the Maoist Centre, as saying.

Tit-for-tat?

Sher Bahadur Deuba’s party was a key coalition partner of the Prachanda-led government but in March, the Nepal PM ousted Nepali Congress and inducted Oli’s CPN-UML.

A report by PTI said Deuba met Oli, who is part of the ruling coalition, at his residence on Saturday to discuss the latest political situation in the politically fragile Himalayan nation.  

Following the meeting with Deuba, Oli met Prachanda twice on Sunday and Monday.

After that, the Prime Minister’s Press adviser, Govinda Acharya, claimed “There is no truth in rumours about a change in the present coalition government and formation of a new alliance."    

Details of the agreement between Congress & CPN-UML

1 - A committee has also been constituted to give suggestions on amending the election procedures.

2 - The committee will also suggest making changes in the constitution under the leadership of former Chief Justice Kalyan Shrestha.

3 - Both the parties also drafted a constitution amendment agreement where it has been stated that the Vice President would be made the chairman of the National Assembly.

4 - Both parties met President Ram Chandra Paudel, and informed him about the change in the coalition. They requested to activate Section 76 (2) to form a new government in case the incumbent Prime Minister failed to take a vote of confidence after UML withdrew its support.

5 - Both the parties got into consensus on the division of ministries.  

6 - As per the agreement, the party leading the government will not get the home ministry.

7 - Apart from the central government, both the parties also agreed on the distribution of leadership in various provinces. The CPN-UML will lead the governments in Koshi, Lumbini, and Karnali provinces, while the Congress will lead in Bagmati, Gandaki, and Far-Western provinces.

Prachanda, who came to power after the 2022 general elections in Nepal, has tested the floor of parliament for a record four times. He will now have to take the vote of confidence again from the parliament now that certain parties in the ruling alliance have withdrawn their support.  

‘Won’t resign’

Meanwhile, Prachanda said he would rather face a vote of confidence in Parliament than resign from the post.

“The Prime Minister has decided to seek a vote of confidence,” Shah was quoted as saying by PTI.

With inputs from agencies