When the country's parliament or constitutional assembly was elected in 2008 it was tasked with drawing up a new constitution within two years.
That period expires Friday - and there is no new constitution in sight.
The government wants to extend the term of the interim constitution, but the opposition says it will only agree to do so if a new government is formed.
Without the support of the other to get a necessary two-thirds majority in parliament - neither opposition nor government can get its way.
But what has triggered the latest crisis? And what are the implications?
Inside Story, with presenter Mike Hanna, discusses with Karna Shahi, the chairman of the Progressive Nepalese Society in the UK, Lawrence Saez, an associate professor of politics at School of Oriental and African Studies, Santosh Shah, the editor of Youth Asia Magazine, who also hosts the Nepali TV programme Power Talks.
This episode of Inside Story aired from Thursday, May 27, 2010.
Source: Al Jazeera