Cousins Atul and Sudhanshu Koirala jointly offered funeral pyre to late Koirala.
Prime Minister KP Sharma Oli offered his last respect to late Koirala and draped the former PM's body with national flag.
The Speaker, former Prime Ministers, Deputy Prime Ministers the Ministers, leaders of different political parties and representatives of the diplomatic missions of various countries offered their last tributes to Koirala.
Family members, relatives, party leaders and cadres and thousands of grieving people were assembled at the Aryaghat for paying last respects to leader Koirala.
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Earlier, the funeral procession of former Prime Minister and Nepali Congress President Sushil Koirala passed through Thapathali, Singha Durbar, Putalisadak, Kamal Pokhari, Gyaneshwor, Kalopol, Gaushala and reached to Pashupati Aryaghat where he will be cremated as per the Hindu rituals.
Nepali Congress Vice President Ram Chandra Poudel, senior leader Sher Bahadur Deuba, General Secretaries Prakashman Singh and Krishna Prasad Situala, party leaders, cadres, Koirala's younger brother Ashok Koirala, nephews Atul Koirala and Sudhamsu Koirala, well wishers and common people have joined the funeral procession.
The government on Tuesday decided to give a state funeral to Koirala who died at 12.50 am the same day. His last rites would be performed as per the Hindu custom at the Pashupati Aryaghat.
As per the decision of the Nepali Congress Central Committee, Koirala's body was kept in state at the Dashrath Stadium for paying of homage since 12 on Tuesday. Before this the body was kept at the party office.
(With inputs from RSS)