Nepal government collapses, coalition ministers resign en-masse retracting support

After two days-long political drama, the incumbent government under Prime Minister Pushpa Kamal Dahal "Prachanda" has collapsed in Nepal as coalition ministers resign en-masse retracting support.

With the expiration of the 24-hour deadline given on Tuesday, the Communist Party of Nepal-Unified Marxist Leninist (CPN-UML), the key ally of the Dahal-led government walked out of the government. The party had given a one-day ultimatum to Prime Minister Dahal to step down from the post which it called "a respectful exit."

On Wednesday (July 3), eight ministers from CPN-UML on board the cabinet of Dahal formed on March 4 earlier this year, tendered resignations before the Prime Minister at his residence in Baluwatar. The ministers had reached Balkot, the residence of UML Chairman KP Sharma Oli and headed for Baluwatar.

"We have resigned and submitted the letter to the Prime Minister a while ago. All the 8 ministers on board the cabinet from the CPN-UML have resigned informing the Prime Minister that we no longer are part of this government and withdraw our support,"
Jwalakumari Sah, the former minister for Agriculture told ANI over phone call from PM residence, Baluwatar.

The UML and Congress on Monday night agreed to form a new government. Oli would lead a new national consensus and government for a year and a half. For the remaining term, Nepal's former PM Sher Bahadur Deuba will be the prime minister.

Dahal expressed reluctance to resign immediately. The office-bearers meeting of the CPN (Maoist Centre) held in Baluwatar on Tuesday had decided that the Prime Minister will not tender his resignation but instead face a trust vote in Parliament within 30 days since the retraction of support.

On Wednesday, the Nepali Congress formally endorsed the agreement reached with the CPN-UML on the formation of a new coalition. A central work execution committee meeting of the party held at party President Sher Bahadur Deuba's residence in Budhanilkantha endorsed the deal reached between the top leaders of the two largest parties.

In the deal, leaders from the two largest parties have reached an understanding to lead the governments in the remaining around three-and-half-year tenure of the present parliament on a rotation basis.
"The meeting concludes that it would be appropriate for the prime minister to pave the way for the formation of a new national consensus government as, following the agreement between Nepali Congress and the CPN-UML, a clear majority in the House of Representatives is in favour of forming the government under the leadership of KP Sharma Oli," reads a statement issued after the meeting.

The meeting also expressed commitment to implement the agreement. "The meeting expresses its determination to implement the agreement reached between the Nepali Congress and the CPN-UML regarding leading governments on a rotation basis to protect national interests, control corruption, ensure good governance, the development, maintain political stability, amending the constitution to strengthen the federal democratic republican system and inclusiveness and to strengthen the economy."

As per the midnight agreement between Sher Bahadur Deuba from Nepali Congress and KP Sharma Oli from CPN-UML on Tuesday, a committee is also formed to suggest amendments to the election procedures and the constitution under the leadership of former Chief Justice Kalyan Shrestha.

In the overnight agreement, the largest and the second largest party in the parliament drafted a constitutional amendment agreement where it was stated that the Vice President would be made the chairman of the National Assembly. Leaders from the Congress and the UML informed President Ram Chandra Paudel about the change in coalition.
During the meeting, the leaders informed the President about activating Section 76 (2) to form a new government in case the incumbent Prime Minister fails to win the vote of confidence after UML withdraws its support.

Prachanda has to take the vote of confidence again from the parliament after a party withdraws support. Dahal, who came to power after the 2022 General Elections. has already taken the floor test in parliament for a record four times.