Nepal’s Prime Minister Pushpa Kamal Dahal or Prachanda resigned on Wednesday, during an address to the nation. Dahal was set to resign as part of a pact with the Nepali Congress, which his Communist Party has tied up with to form the government.

As per a pact, the coalition had agreed to run the government on a rotational basis, NDTV reported. Nepali Congress chief Sher Bahadur Deuba will be the next prime minister. The Congress has the most seats in the Parliament.

According to the Congress-Communist Party pact, Prachanda would step down after local body elections concluded. Nepal had held its first civic elections from May 14. The second phase is expected to start on June 14.