1996: Maoist insurgency

In February 1996, the Communist Party of Nepal (Maoist) began a violent insurgency in more than 50 of the country's 75 districts. About 13,000 police, civilians, and insurgents have been killed in the conflict since 1996. In July 2001 Prime Minister Deuba announced a cease-fire, which the Maoists pledged to observe, as part of a government effort to seek a negotiated solution to the conflict. Although Maoist-instigated intimidation and extortion continue, the killings have largely subsided since the cease-fire was announced. The government and Maoists held talks in August and September 2001.

Political parties agreed in 1991 that the monarchy would remain to enhance political stability and provide an important symbol of national identity for the culturally diverse Nepali people. The King exercises limited powers, including the right to declare a state of emergency in the event of war or armed revolt, with the advice and consent of the Council of Ministers and the Prime Minister. According to the constitution, the King's declaration of a state of emergency must be approved by a two-thirds majority of the lower house of the Parliament.