Nepal’s political parties were holding crisis talks on forming a new coalition government today after the prime minister resigned in a power struggle with the president over enlisting former Maoist rebels into the military.

NEPAL’S prime minister resigned yesterday amid a power struggle over his firing of the army chief, saying he was stepping down to “save the peace process” that brought the Himalayan nation out of a decade-long civil war.

Nepal’s Prime Minister Pushpa Kamal Dahal announced his resignation on national television today after the president overturned his decision to fire the army chief.

NEPAL’S prime minister fired the army chief yesterday after accusing him of defying government orders, prompting a key party to quit the coalition government and plunging the Himalayan country into a political crisis that could endanger its peace process.