Nepal PM 'agrees' to stand aside

Nepal’s prime minister will resign by the end of the month to pave the way for a new constitution and new elections, an opposition source said.

Bhim Rawal of the Communist Party of Nepal (United Marxist Leninist) said today that prime minister Baburam Bhattarai and other leaders of Nepal’s major political parties signed an agreement calling for him to step down.

But first Mr Bhattarai will form a new coalition government to help draft a new constitution by a May 27 deadline.

Then a new prime minister will lead the government, which will would hold elections within one year.

A new constitution is a key part of the peace process that began in 2006 after Maoist rebels gave up their armed revolt.