Prachanda was supposed to fly to New York today to take part in the 71st session of the United Nations General Assembly leading the Nepalese delegation.
He had returned home yesterday on completion of his four- day tour to India.
"The Prime Minister decided not to leave the country after voices were raised from several quarters that he is required to work towards addressing the concerns and grievances raised by the Madhesi, Tharu and ethnic minority groups," reads a statement issued by the Prime Minister's Office.
Sources said it was high time that the prime minister focussed on implementation of the Constitution and carry out reconstruction work of the damaged structures, so he decided to cancel the foreign trip.
Meanwhile, addressing a programme in Nepal Army pavilion here to mark the Constitution Day, Prachanda said the statute can mature only after timely amendments to cater to the needs of the people.
The Constitution must be open to amendments as the Madhes-based communities are still dissatisfied with the existing one, he said.
The Prime Minister congratulated the people of Nepal as the nation marked the first anniversary of achieving the decades-long dream of promulgating a people-written Constitution.
He also said the government was active towards holding elections at all three tiers including local, provincial and federal levels and would soon announce the dates for them.
President Bidya Devi Bhandari, Deputy prime ministers, ministers, high-ranking government officials, chiefs of diplomatic missions, among others were present on the occasion.
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