Nepali political parties still remain in deadlock about the formation of new government, after the abolition of monarchy in the Himalayan nation.

"Unless the Communist Party of Nepal (Maoist) (CPN-M) gathers a consensus and creates an atmosphere to form a new government, the present government will not be dissolved," Ram Chandra Poudel, a senior Minister for Peace and Reconstruction said Sunday, after a multi-party meeting attempting to end the deadlock.

People celebrate the announcement of the republic near the royal palace vicinity in Kathmandu May 29, 2008. Nepali authorities raised the national flag at the palace of dethroned King Gyanendra on Thursday, hours after stone-throwing demonstrators clashed with police and tried to storm inside. (Xinhua/Reuters Photo) 

The CPN-M, which emerged as the largest party after winning 220seats in the landmark Constituent Assembly elections started on April 10 this year, is demanding the Girija Prasad Koirala-led Interim Government in last April be dissolved immediately.

"The new government will be only formed after the prevailing dispute over power sharing and election procedure for the president is resolved and weapons belonging to the CPN-M are properly managed," Minister Poudel said.