K P Sharma Oli, CPN-UML chairman and seen as a pro-China leader, was appointed Nepal's Prime Minister for a fourth term on Sunday to lead the new coalition government that faces the daunting challenge of providing political stability in the Himalayan nation.

Oli, 72, succeeds Pushpa Kamal Dahal Prachanda who lost the vote of confidence in the House of Representatives on Friday, leading to the formation of the new government process as per Article 76 (2) of the Constitution.

President Ram Chandra Paudel appointed Oli as the new Prime Minister under Article 76-2 of the Constitution of Nepal, according to a notice issued by the President’s Office.

Oli became the Prime Minister with the support of the Nepali Congress, the largest party in Parliament.

Oli's swearing-in ceremony is scheduled to take place at 11 am on Monday at Shital Niwas, the main building of Rashtrapati Bhawan.

On Friday night, Oli staked his claim to become the next Prime Minister with the backing of NC president Sher Bahadur Deuba and submitted the signatures of 165 House of Representatives (HoR) members -- 77 from his Communist Party of Nepal-Unified Marxist Leninist (CPN-UML) party and 88 from the Nepali Congress. (NC).

CPN-Maoist Centre Chairman Prachanda lost the vote of confidence in HoR during a floor test on Friday.

Earlier last week, Nepali Congress president Sher Bahadur Deuba and CPN-UML chairman Oli inked a seven-point deal to form a new coalition government replacing Prachanda. The two leaders agreed that the remaining term of the Parliament would be shared between them turn by turn. In the first phase, Oli will become the Prime Minister for 18 months as per the agreement.

Prime Minister Oli will form a small cabinet on Monday, according to sources close to him.

Other political parties including Rastriya Prajatantra Party, Janata Samajwadi Party Nepal, Lokatantrik Samajwadi Party, Janamat Party and Nagarik Unmukti Party are also likely to join the government.

Oli served as Nepal's prime minister from October 11, 2015, to August 3, 2016 and then, from February 5, 2018, to July 13, 2021. He continued to serve from May 13, 2021, to July 13, 2021 -- because of an appointment by the then President Bidya Devi Bhandari, described by local media as a success of Oli’s Machiavellian tricks. Later, the Supreme Court ruled that Oli's claim to the post of prime minister was unconstitutional.

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