The prime minister said his government was successful in ending the crippling power outage which had been affecting daily life of people for years.

In his state address, Dahal claimed that his government was able to achieve economic growth of 7.5 percent, which was rare in the country's history.

Mentioning a Memorandum of Understanding signed between Nepal and China under the Belt and Road Initiative earlier this month, the prime minister said, "Nepal has become a partner of the Belt and Road Initiative and I believe that it will greatly help to bolster socio-economic development of the country."

The prime minister's resignation has come just three weeks ahead of second round of local body polls slated for June 14.

"I believe that the next round of local body polls will be held in a peaceful manner like in the round that witnessed the overwhelming participation of people. I feel honored to hold such a historical local polls during my tenure," he said.

Officials say it will take at least the next two weeks to form a new government as per the constitutional provisions.

This was the second time Dahal served as the prime minister of the Himalayan nation since his Maoist party joined the mainstream politics in 2007 after signing the peace deal with the then government, ending the 10-year armed conflict that started in 1996.

Dahal served as the prime minister for the first time from 2008 to 2009.

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