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Sushil Koirala has to share power with a rival party, pass a constitution and ease tensions with disgruntled Maoists.
Move ends months of political deadlock after the monarchy was removed.

Sher Bahadur Deuba, the former Nepali prime minister, has been freed from prison after the Supreme Court dissolved the controversial anti-graft panel that jailed him.

Maoist rebels have ambushed two police trucks in Nepal, killing 21 policemen and wounding 12.
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UNHCR says hundreds of people trapped in Yaloke town risk death if they are not evacuated to safety urgently.
'Justice for All' demonstrations swell across the US over the deaths of African Americans in police encounters.
Six former Guantanamo detainees are now free in Uruguay with some hailing the decision to grant them asylum.
Disproportionately high number of Aboriginal people in prison highlights inequality and marginalisation, critics say.
 
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