KATHMANDU: In a significant political development, the Nepali Congress, the largest party in the parliament, and the CPN-UML, the second largest party, have reached an agreement to form a new government.

This new political pact puts the PM Dahal-led government on the verge of collapse.

The official document of the agreement has yet to be made public.

However, according to the draft of the agreement, the two parties have decided on sharing ministerial portfolios, power-sharing in provinces, and leading the federal government.

As per the agreement, the UML will lead the government for the first one and a half years before handing over power to the Nepali Congress.

In the first phase, Chairman of CPN-UML KP Sharma Oli will be the Prime Minister, with the UML acquiring nine ministries, including the Finance Ministry.

Meanwhile, the Nepali Congress will get 10 ministries, including the Home Ministry.

Additionally, the UML will lead the government in Koshi, Lumbini, and Karnali provinces, while the Nepali Congress will lead in Bagmati, Gandaki, and Sudurpaschim provinces.

The Madhesh Province will be led by a political party centered in Madhesh.

Here are the key points of the agreement:

KP Sharma Oli will be the Prime Minister for the first one and a half years, followed by Sher Bahadur Deuba.

The UML and Nepali Congress will each lead the government in three provinces, with the Madhesh Province led by a local party.

The constitution will be amended to allow lawmakers elected by the proportional election system to be sent to the National Assembly, and the Vice-President will become the Chairman of the National Assembly.

The number of seats in both the lower and upper houses of parliament will be reviewed.

The number of local bodies will be decreased, and the number of wards will be increased.

An advisory committee, led by former Chief Justice Kalyan Shrestha, will be formed to amend the constitution.