Nepal’s Political Landscape Shifts as PM ‘Prachanda’ Forms New Alliance with Oli’s Party

In a significant political development, Nepal’s Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has announced the formation of a new alliance with former premier K.P. Sharma Oli’s party. This move comes after the termination of the nearly 15-month partnership between the Communist Party of Nepal (Maoist Centre) led by Prachanda and the Sher Bahadur Deuba-led Nepali Congress.

The alliance between the Maoist Centre and Nepali Congress unraveled due to growing differences between the top leadership, culminating in the termination of their partnership. Ganesh Shah, Secretary of the CPN-Maoist, stated, “As (the) Nepali Congress did not cooperate with the Prime Minister, we are forced to look for (a) new alliance.”

Prachanda, who secured his third term as Prime Minister with the support of the Nepali Congress in December 2022, has now joined forces with the Communist Party of Nepal (Unified Marxist–Leninist), led by Oli, despite their previous differences. Last year, the CPN-UML withdrew support for Prachanda’s government following a dispute over endorsing the main opposition party’s candidate for the Presidential poll.

The formation of a new cabinet is expected on Monday afternoon, with the cabinet size anticipated to be smaller, according to Surendra Pandey, Vice-chairman of the CPN-UML.

The rift between the Maoist Centre and Nepali Congress intensified over disagreements, particularly regarding budget allocations for specific projects. Tensions escalated further when Nepali Congress President Deuba and Prachanda clashed over the appointment of the Chairman of the National Assembly.

To solidify the new alliance, Oli met with Prachanda at the Prime Minister’s quarters, discussing matters related to the formation of the government and possible leftist alliances. Following the meeting, leaders of three political parties, including Prachanda, Oli, and Rastriya Swatantra Party’s (RSP) Ravi Lamichhane, convened at Baluwatar to deliberate on the modality of the alliance and the formation of the new government.

The emerging political landscape in Nepal underscores the fluidity of alliances and the evolving dynamics among key political players. With the Nepali Congress as the largest party in the House of Representatives, securing 89 seats in the November 2022 general election, the new alliance signals a potential shift in power dynamics as the Prachanda-led government seeks stability through collaboration with the CPN-UML.