Kathmandu, Jul 3 (IANS): The ruling Communist Party of Nepal (Unified Marxist Leninist) has called on Prime Minister Pushpa Kamal Dahal to step down to clear the way for the formation of a "national consensus government".

The ruling partner set Wednesday evening as the deadline for Dahal to step down and support the formation of the "national consensus government" to be headed by K.P. Sharma Oli, CPN-UML's chairman and a former Prime Minister.

The move came after the Nepali Congress and the CPN-UML, the two largest parties in the House of Representatives, agreed on Monday night to join hands for a new coalition, Xinhua news agency reported on Tuesday.

"We have called on the Prime Minister to resign to support the formation of the national consensus government under the leadership of our party chairperson," said Rajendra Gautam, publicity department chief of the CPN-UML.

"Our party wants all the parties, including the Communist Party of Nepal (Maoist Center) led by Dahal, to join the new government," Gautam told Xinhua.

He said his party would quit the government and withdraw its support only if Dahal refused to resign.

The CPN (Maoist Center) has announced that Dahal would not resign from his post but rather seek a vote of confidence in the Lower House.

Dahal became the head of a coalition government in December 2022 as the general election in November produced no majority party in the Lower House, and the Prime Minister has formed alliances with both the Nepali Congress and the CPN-UML ever since.