KP Oli called the meeting at his official residence Baluwatar to discuss various contemporary issues.
As cracks appeared in Nepal's ruling alliance, Prime Minister KP Oli today called a joint meeting of the coalition partners in an attempt to avert any possible political crisis.
Mr Oli called the meeting at his official residence Baluwatar to discuss various contemporary issues, his Press Advisor Pramod Dahal said.
Leaders in the meeting will discuss implementation of the Constitution Implementation Action Plan that the government had introduced recently and endorsement of the budget announced for the next fiscal year, he said.
The decision to hold the meeting came after UCPN-Maoist Centre chairman Pushpa Kamal Dahal also known as Prachanda claimed that the next government would be formed soon after the new budget is endorsed by the Parliament.
According to media reports, the Maoists and the CPN-UML led by Mr Oli had reached an agreement last month in this regard.
During a meeting with the Prime Minister yesterday, Mr Prachanda is understood to have asked Mr Oli to honour nine-point agreement reached between the two big parties in May.
Prachanda also told Mr Oli that his party is concerned about the formation of national unity government with the involvement of Nepali Congress, the main opposition party, according to sources close to Prachanda.
The Maoists have also indicated that they would not let the budget pass in the Parliament if Oli turns a deaf ear towards their concerns.
However, today's meeting is regarded as important, as it will decide the fate of the coalition government.
Prime Minister Oli has been cornered after the Maoists raised the issue of formation of national unity government. Meanwhile, Minister for Information and Communication Sherdhan Rai has dismissed as rumours reports about government change.
He claimed that the coalition government enjoys overwhelming support of the people and the rumour was spread by those who are scared of the government's strength.
He said that the government is ready to forge national consensus, adding no one should talk about misleading things in the name of consensus at a time when the government is making serious efforts towards implementing the new Constitution.
The government has called the agitating Madhesi parties for a dialogue to address their concern, the minister said and expressed hope that they will soon come forward for a dialogue.