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Jhalanath Khanal, who headed fragile coalition government, steps down amid pressure from the opposition.
Political parties reach last-minute deal, saving the Assembly and averting a political crisis in the country.
Move marks effective end to political deadlock that has left Himalayan nation without premier for seven months.
Seven-month political deadlock broken after Jhalanath Khanal wins parliamentary vote with Maoist support.
Madhav Kumar to resign in effort to break deadlock with former Maoist rebels.
Move will allow political party leaders more time to finalise new constitution.
Dispute among parties over terms for extending parliament threatens new constitution.
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