Nepali Congress (NC) and the CPN-UML have agreed to a power-sharing arrangement late Monday night. The pact, finalized between NC President Sher Bahadur Deuba and UML Chairman KP Oli, outlines the ministerial division, provincial leadership roles, and a rotation for the prime ministerial position.

Under the agreement expected to be finalized today, UML Chairman Oli will initially lead the government for the first half of the remaining term of the current parliament. During Oli’s tenure, the UML will control key ministries, including the Prime Minister’s position and the Finance Ministry, while the NC will oversee ten ministries, including the Home Ministry.

The UML will lead provincial governments in Koshi, Lumbini, and Karnali provinces, while the NC will head the provincial governments of Bagmati, Gandaki, and Sudurpaschim provinces. Additionally, the two leaders have agreed to involve Madhesh-based parties in leading Madhesh Province and have committed to constitutional amendments, with a committee to be formed to recommend changes.

The agreement, formally signed at midnight on Monday by Deuba and Oli after lower-level party leaders finalized a draft at a hotel in Lalitpur, is yet to be publicized. Senior leaders of the NC and the UML asserted that a coalition government involving both parties will be formalized by today.

Meanwhile, Prime Minister Pushpa Kamal Dahal has decided not to resign from his post. Maoist Center Secretary Devendra Paudel announced that the office-bearers’ meeting in Baluwatar resolved to face a vote of confidence in parliament. “The Prime Minister has decided to seek a vote of confidence,” Paudel stated. “We have unanimously supported this decision on behalf of the party. We will engage in discussions with various parties, including the Rastriya Swatantra Party (RSP), Nepali Congress, and CPN-UML.”

UML has prepared to withdraw its support from the government and ask its ministers to resign, requiring PM Dahal to seek a vote of confidence within one month according to the constitution.

The Rastriya Swatantra Party (RSP), who is part of the current coalition has decided not to participate in the new alliance between the NC and UML. Party whip Santosh Pariyar announced that ministers will be recalled once the process of forming the next government begins. “We will not be part of the new alliance that is being formed,” Pariyar said. “As soon as the process of forming a new government moves forward, we will leave the current government.”

Pariyar expressed that this alliance is not in the country’s best interest and is unlikely to provide political stability. He also commented that having two major powers together in the government does not align with democratic principles. “We were playing a leading role in promoting good governance within the home administration. The way we were working could be one of the reasons for this development,” he added.