In the aftermath of Prime Minister Pushpa Kamal Dahal’s resignation on May 5, President Ram Baran Yadav asked the political parties to form a national consensus government by May 10. However, no progress was achieved on that score with the CPN-Maoists continuing their street demonstrations and obstruction of the parliament over the president's action1.

Media channels meanwhile broadcast the controversial speech of Mr. Dahal in which he had admitted that the real cadre strength of the PLA was not more than 8,0002. Young Communist league (YCL) members have threatened to target supporters of President Yadav if they organized programmes in support of him3.

The international community continued to express concern over the developments in the country. UNMIN chief Karin Landgren urged all parties concerned to work to rebuild trust and achieve consensus4.

In other developments, a FICCI survey indicated that the political turmoil has been a major blow to Indian investors seeking business in the country. FICCI Secretary General Amit Mitra stated that “unless corrective action is taken, it would result into large scale industrial sickness and unemployment5.”

• 1. “President writes to parliament calling for formation of majority govt,” nepalnews.com, May 10, 2009, at http://www.nepalnews.com/archive/2009/may/may10/news05.php
• 2. “Video shows Dahal admitting real strength of PLA not more than 8,000,” nepalnews.com, May 5, 2009, at http://www.nepalnews.com/archive/2009/may/may05/news12.php
• 3. “YCL warns Prez supporters,” kantipuonline, May 7, 2009, at http://www.kantipuronline.com/columns.php
• 4. “UNMIN chief concerned over future of peace process,” nepalnews.com, May 8, 2009, at http://www.nepalnews.com/archive/2009/may/may08/news05.php
• 5. “Indian investors in Nepal worried,” The Times of India, May 7, 2009, at http://timesofindia.indiatimes.com/Business/India-Business/Indian-invest...