Kathmandu, 13 July— Prime Minister and former Maoist leader Pushpa Kamal Dahal, also known as Prachanda, lost a crucial vote of confidence in Nepal's parliament on Friday, paving the way for a new coalition government to be led by former Prime Minister KP Sharma Oli.

Prachanda, who needed a minimum of 138 votes in the 275-seat parliament to retain his position, received only 63 votes in his favor, while 194 members voted against him and one member abstained. The total number of members present in Parliament was 258. Following the vote, Speaker Deb Raj Ghimiri announced that Parliament members had rejected Prachanda in the confidence vote.

KP Sharma Oli, who has previously served as Prime Minister twice, is set to return to office after striking a deal with the centrist party Nepali Congress (NC) in late June. This alliance ensures a majority in Parliament, clearing the way for Oli to form a new government.

The Nepali Congress, the largest party in Parliament, and Oli's UML, the second-largest, will now form a coalition government. This shift marks a significant change in Nepal's political landscape.

Since the abolition of the monarchy and the establishment of parliamentary democracy in 2008, Nepal has experienced considerable political instability. The country has seen 13 different governments in the past 16 years. The departure of the last king, Gyanendra, in 2008 led to the establishment of the presidency, and significant changes to the constitution, national symbols, and the national anthem.

If Oli successfully forms the new government, it will be the 14th democratic government in Nepal since 2008, continuing the pattern of frequent political changes in the young republic.