President Bidya Devi Bhandari was the chief guest at a special programme which was also attended by Vice President Nanda Bahadur Pun and caretaker Prime Minister Prachanda.
Pigeons were released from the Army Pavilion ground symbolising peace and harmony.
On the occasion, Prachanda said the first phase of the local-level elections was conducted in a free and fair manner with participation of the people.
He described the local-level polls as a milestone in consolidating the federal democratic republic in the country.
The Nepal Army presented a guard of honour to the president at the function. An Army helicopter displayed the Republican Day banner and dropped flower petals from the air.
The function commenced with the playing of the tune of the national anthem which was followed by the observance of silence in memory and honour of the martyrs who laid down their lives in various movements in the past for a political change.
During the function, the Nepalese Army, Nepal Police and the Armed Police Force presented a march-past as well as music and dances evoking patriotism.
Nepal was declared a Republic on May 29, 2008 after the 150-year-old monarchy was abolished.
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