Nepal PM Oli quits as anti-corruption protests spiral

Oli's government lifted the ban after protests intensified on Monday, with police firing tear gas and rubber bullets at protesters trying to storm parliament. Nineteen people were killed and more than 100 injured in the unrest.

But there was no let up in the protests on Tuesday, forcing Oli to quit and plunging Nepal into fresh political uncertainty.

The unrest is the worst in decades in the poor Himalayan country that is wedged between India and China and has struggled with political instability and economic uncertainty since protests led to the abolition of its monarchy in 2008.

"In view of the adverse situation in the country, I have resigned effective today to facilitate the solution to the problem and to help resolve it politically in accordance with the constitution," Oli said in his resignation letter to President Ramchandra Paudel.

An aide to Paudel told Reuters the resignation had been accepted and the President had begun the "process and discussions for a new leader".

The army posted an appeal on X asking people to "exercise restraint" since Oli's resignation had been accepted.

Oli, 73, was sworn in for his fourth term in July last year as the country’s 14th prime minister since 2008. Two of his cabinet colleagues resigned late on Monday, saying they did not want to continue on moral grounds.

Earlier on Tuesday, Oli had called a meeting of all political parties, saying violence was not in the interest of the nation and "we have to resort to peaceful dialogue to find solutions to any problem".

Oli had also said he was saddened by the incidents of violence due to the "infiltration from different selfish centres". He did not respond directly to the protesters' complaints about corruption.

But anger against the government showed no signs of abating, as protesters gathered in front of parliament and other places in the capital Kathmandu, in defiance of an indefinite curfew imposed by authorities.

The protesters set fire to tyres on some roads, threw stones at police personnel in riot gear and chased them through narrow streets, while some looked on and shot videos of the clashes on their mobile phones as thick black smoke rose to the sky.

Witnesses also said that protesters were setting fire to the homes of some politicians in Kathmandu, and local media reported that some ministers were plucked to safety by military helicopters.

Reuters could not immediately verify the information.

MAIN AIRPORT SHUT

Kathmandu airport, Nepal's main international gateway, was closed with immediate effect as smoke from fires nearby set by protesters could endanger the safety of aircraft, the Civil Aviation Authority of Nepal said.

"We are still standing here for our future ... We want this country corruption-free so that everyone can easily access education, hospitals, medical (facilities) ... and for a bright future," protester Robin Sreshtha told Reuters TV.

Organisers of the protests, which spread to other cities in the Himalayan country, have called them "demonstrations by Gen Z", driven by young people's widespread frustration with the government's perceived lack of action to tackle corruption and boost economic opportunities.

"The protest was intended, first and foremost, against the rampant corruption in government," a protester said in an email to Reuters, signing off as 'A concerned Nepali citizen'.

Young Nepalis had been putting out social media posts about the "luxurious lives of the families and children of corrupt politicians and civil servants" and the government responded by clamping down on social media platforms, the email said.

Neighbour India, which is home to hundreds of thousands of Nepali migrant workers, said it hoped that all concerned will exercise restraint and resolve issues through talks.

A joint statement by the embassies of Australia, Finland, France, Japan, South Korea, UK, Norway, Germany, and the U.S. in Nepal urged all parties to exercise maximum restraint, avoid further escalation and ensure fundamental rights are protected.

Last week, Oli's government imposed a social media ban blocking access to several online platforms after it said the platforms had failed to register themselves with the government.

Critics said it was an attempt to throttle free speech, a charge the government denies, citing misuse of social media to spread disinformation and commit fraud, among other concerns.