Kathmandu, In a dramatic political development, Nepal's two largest parties, the Nepali Congress and the CPN-UML, signed a midnight power-sharing agreement to form a new 'national consensus government' to replace the coalition government led by Prime Minister Pushpa Kamal Dahal. Prachanda.”

Nepali Congress president Sher Bahadur Deuba and Communist Party of Nepal-Unified Marxist Leninist (CPN-UML) president and former prime minister KP Sharma Oli reached an understanding to form a new coalition on Monday midnight, according to former Foreign Minister Narayan Prakash Saud.

Deuba, 78, and Oli, 72, agreed to share the Prime Minister's post on a rotating basis for the remainder of Parliament's term, said Saud, who is also a core member of the Nepali Congress. Nepali Congress, the largest party in the House of Representatives (HoR), it currently has 89 seats, while the CPN-UML has 78 seats. The combined strength of the two major parties is 167, which is enough for a majority of 138 seats in the 275-member HoR.

The two leaders also met on Saturday to lay the foundation for a possible 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 providing support to it. .

Under the deal likely to be finalized on Tuesday, CPN-UML chief Oli will lead the government in the first phase of the remaining Parliament term. The two leaders agreed to share the post of prime minister for one and a half years, one for one, Saud said.

The two leaders tentatively agreed to form a new government, amend the Constitution and work out a power-sharing formula, which they reportedly shared with some confidants, media reports said, citing several senior leaders from both parties.

Nepal has had 13 governments in the last 16 years, indicating the fragile nature of the Himalayan nation's political system. Ministers belonging to the CPN-UML in the Prachanda-led cabinet are likely to resign en masse in the afternoon, they said sources close to the CPN-UML.

CPN-UML secretary Shanker Pokharel told media that an agreement has been reached with the Nepali Congress to form a national government led by Oli, a former prime minister.

The new government will be formed to maintain political stability in the country and make necessary amendments to the Constitution. Meanwhile, Prime Minister Prachanda is holding talks with CPN-UML chief Oli to discuss the latest political developments, according to sources close to the Maoist Center-CPN.

“Prachanda is not resigning from office at this time. Nothing can be said before the conversation being held between Prachanda and Oli is concluded,” said Ganesh Shah, secretary of the CPN-Maoist Centre.

According to the agreement reached, during Oli's tenure, the CPN-UML will take control of ministries, including the post of Prime Minister and the Ministry of Finance. Similarly, the Nepali Congress will oversee ten ministries, including the Ministry of Home Affairs, MyRepublica news portal reported. Under the agreement, the CPN-UML will lead the provincial governments of Koshi, Lumbini and Karnali provinces and the Nepali Congress will lead the provincial governments of Bagmati, Gandaki and Sudurpaschim provinces.

Oli and Deuba also agreed to engage Madhes-based parties in the main province of Madhesh and committed to constitutional amendments.

The draft agreement was prepared by a four-member working group, The Kathmandu Post reported. It will detail the power-sharing agreement, propose amendments to the Constitution, review the electoral system, including proportional representation, change voting arrangements the national assembly and will discuss the size of provincial assemblies, according to a member of the working group.

Differences between Oli and Prime Minister Prachanda had been growing steadily, and Oli was unhappy with the recent budget allocations made by the government for the fiscal year 2024-25, which he had spoken about publicly.

Concerned about the closed-door meeting between Deuba and Oli, Prachanda had gone to meet Oli to assure him that the government is serious about addressing the issues raised by the CPN-UML, including its concern over the new budget, they said. observers.During their meeting on Monday morning, Oli allegedly asked Prachanda to support him by resigning, the report said.

Prachanda offered Oli the position of prime minister within the current ruling coalition, which the latter rejected, expressing his desire to lead a consensus government, a CPN-UML leader was quoted as saying. Prachanda, 69, got three votes from confidence in Parliament during his year and a half term.