The prime minister said he decided to resign to bring an end to the protracted political deadlock and move the peace process forward. [break]
Addressing the nation on television from his official residence at Baluwatar at 6 p.m., Nepal said he decided to quit despite having a clear majority in parliament so as to pave way for consensus among political parties and resolve the current political deadlock.
"I have decided to resign from the post of prime minister so that the peace process can be completed, a new constitution drafted and the current political deadlock resolved," he said.
After the address, the prime minister reached President Dr Ram Baran Yadav´s office at 7 p.m. to hand over his resignation letter. Dr Yadav has asked Nepal to act as a caretaker prime minister until a new government is formed.
"The president will begin the process of calling the political parties to form a new government from tomorrow [Thursday]," said president´s press advisor Rajendra Dahal.

In his televised address, the prime minister said: "I had frequently urged the political parties including the Maoists to find an appropriate way out of the present deadlock and forge a consensus. But no agreement has reached so far."
The prime minister´s resignation comes amid pressure from the main opposition Maoists that he step down immediately as per the three-point deal.
He said he had given a month to the big three parties to find his alternative after UCPN (Maoist), Nepali Congress and CPN-UML reached a three-point deal an hour before the extension of the CA (CA) term on May 28.
Stating that the parties failed to forge consensus despite his repeated requests, he said he decided to quit keeping in view the urgency to table plans and policies of the government in parliament. He said it would be inappropriate to further prolong the situation of confusion and indecision.
Nepal stressed on the need for cooperation and consensus among political parties to promulgate the new constitution and take the peace process to a logical end. He said the Maoists rendered the constitution drafting process directionless by linking the issue with government formation.

He asked the Maoists to live up to their commitment that the constitution making process would move forward after his resignation. “I hope that the UCPN (Maoist) will fulfill its commitment in the days ahead,” he said.
During the 21-minute televised speech, the prime minister said his 13-month long stint in power was marred with difficulties as the government had to face opposition from various quarters including from his own right since the day the government was formed on May 24, 2009.
“Such attacks [against the government] not only came from the opposition. They came from unexpected direction and places as well,” he said.
He maintained that his government lasted for 13 months despite adverse circumstances due to unprecedented unity and conscience demonstrated by political parties with varied ideologies.
He said the government had made remarkable achievements in improving law and order, taking ahead the constitution drafting and peace process despite stiff opposition from the Maoists.
Nepal said he would remain active in politics despite resignation from the post of prime minister. “I want to reiterate that I would continue to serve my country even after I resign from the post of prime minister,” he said.
The Maoists welcomed the announcement. "The prime minister should have resigned a lot earlier. However, we welcome the resignation," Maoist spokesman Dinanath Sharma said.
Brief career-graph
1965: Joins communist politics
May 1993: Becomes General Secretary of CPN-UML
1994-1995: Serves as Deputy Prime Minister in UML-led minority government
April 12, 2008: Resigns from the post of UML General Secretary after defeat in CA election
Jan 10, 2009: Nominated as CA member
Jan 13, 2009: Elected Chairman of Constitutional Committee of CA
May 23, 2009: Elected prime minister
June 30, 2010: Steps down as prime minister
koshraj@myrepublica.com
President Paudel expresses concern over parliament deadlock