Prime Minister Jhanath Khanal did not submit his resignation on Saturday, as the ruling parties advised him to hang on to his chair until consensus is reached for a next set of government.

“The leaders advised Khanal to continue until there is an agreement on a reliable government,” said Surya Thapa, press advisor to the PM.

The leader of ruling five parties had pointed at constitutional crisis in case a new government is not formed before the CA tenure expires on 31 August. The current government is supposed to complete the fundamentals of peace process in remaining 18 days to extend the CA term. The government has failed two earlier deadlines.

Khanal had announced in the parliament on Wednesday that he would resign on Saturday if there was no progress in the peace process and ongoing constitution drafting.

Earlier, the PM held consultations with other parties all day long in an effort to reach consensus to form a unity government. The meetings ended inconclusively.

The PM office has issued a statement saying the PM will clarify his refusal to resign from the post in the parliament session.