A meeting of the high-level body of the Unified Communist Party of Nepal(UCPN-Maoist) exerted pressure on the party's leadership to make efforts to form a national unity government under the leadership of Prachanda and asked the Nepali Congress, Madhesi parties and other fringe parties to join the new government.
Prachanda, known for his anti-India stance, had served as Prime Minister of Nepal for a brief period from August 18, 2008 to May 25, 2009.
Although the Maoists have not yet officially announced the withdrawal of support from the Oli-led coalition but next meeting of the party Standing Committee scheduled tomorrow is likely to take a decision in this regard, said party insiders.
However, senior UCPN-Maoist leader Dinanath Sharma talking to PTI said that though the party has decided to form a national unity government, it has not yet decided who should lead the new government.
Main opposition Nepali Congress is also not happy with the working style of Oli-led government.
The Nepali Congress has also reached out to the Maoists and Madhesi parties in a bid to find an alternative to the coalition government.
If the rift between ruling alliance widens, Oli government might be prevented from presenting the budget later this month.
The Nepali Congress and the Maoists have accused Prime
minister Oli for failing to implement the new Constitution, address the problems related to the Madhesi people, expedite the post-quake reconstruction work, failing to check soaring market price and promoting black marketing and corruption.
Oli yesterday also asked his party lawmakers to present themselves effectively during the Parliament session.
In the parliamentary party's meeting held at parliament building in New Baneshwor, Oli directed his party lawmakers to be prepared to counter any move by the Nepali Congress, the main opposition party in the parliament, as it may put obstruction when the government will present its policy documents in the parliament next week.
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