The majority Nepali Congress party will continue to rule despite the resignation of Prime Minister Girija Prasad Koirala, party sources said.
The central committee of the party is meeting Friday to discuss the latest crisis in the party and elect a new leader to succeed Girija Prasad Koirala.
Former Prime Minister Sher Bahadur Deuba is the leading contender to succeed Koirala; he is being challenged by former Deputy Prime Minister Ram Chandra Paudyal, party general secretary Sushial Koirala and former home minister Khum Bahadur Khadka.
Koirala said he resigned because of “existing challenges” facing the country and to resolve the internal bickering in the ruling Nepali Congress. “For me the progress of Nepal and people are supreme. National consensus is essential for progress and to combat terrorism. They are the main political agendas for me,” Koirala told the nation over radio and television.
Koirala’s resignation came 12 hours after the entire opposition Wednesday stalled parliament’s budget proceedings demanding his resignation.