Nepal PM quits, political turmoil seen

KATHMANDU - Nepal's Prime Minister Jhalanath Khanal resigned on Sunday pushing the country back into turmoil as political parties scrambled to form a new coalition government and draft a new constitution.
Khanal, a moderate communist, was elected six month ago and vowed to carry out the promises made in a 2006 peace deal with Maoist rebels.
But political in-fighting blocked his attempts to help thousands of ex-Maoist fighters living in camps, and to prepare Nepal's first republican constitution after the monarchy was abolished in 2008.
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