Prime Minister KP Sharma Oli and Nepali Congress President Sher Bahadur Deuba along with second-rung leaders from their respective parties met on Thursday to discuss the ongoing political crisis in the Bagmati provincial government.

The meeting came a day after Bagmati Chief Minister Bahadur Singh Lama lost his position as the Nepali Congress’ provincial assembly party leader to Indra Bahadur Baniya of the same party in an election held on Wednesday. This loss effectively disqualifies him from continuing as chief minister. But Lama has refused to resign from chief minister and hand over the provincial government leadership to Baniya.

Lama argued that his loss in the intra-party election does not automatically require him to resign from the government leadership.

Congress lawmakers said Lama lost the trust of his own party’s lawmakers following a recent uproar over the provincial budget. After dissatisfaction escalated, five ministers from the Congress party resigned from their positions. In a bid to save his position, Lama appointed three new ministers on Wednesday, but their swearing-in has become uncertain.

Amid the crisis, Oli and Deuba, along with other senior party leaders, met on Thursday to resolve the Bagmati deadlock. During the meeting, Deuba reportedly told Prime Minister Oli that the issue was an internal matter for the Congress and that the party would resolve it on its own.

According to a Congress leader privy to the development, Deuba told Oli that Lama had already been instructed to come to Kathmandu. The leader said Deuba plans to ask Lama to resign.

“A new parliamentary party leader has been elected in Bagmati. This is our internal matter, and we will settle it ourselves,” a Congress leader quoted President Deuba as saying at the meeting with Oli. “However, since this is a coalition government as well, UML’s support is still necessary.”

Oli, for his part, assured that the UML would continue to support the Nepali Congress’s decision in Bagmati province.

Congress Vice President Purna Bahadur Khadka, who participated in the meeting, stated that the overall situation in Bagmati province was discussed.

“We talked about the overall situation in Bagmati. We presented our views and told them we will handle the matter ourselves. They (UML leaders) have been supporting us,” said Khadka.

He also added that the leaders also discussed ways to improve the functioning of the federal government.

“We talked about making government operations more effective. Several bills are under discussion in parliamentary committees, and an understanding has been reached to hold more meetings and deliberations so that the bills can move forward quickly,” he said.

In the 110-member Bagmati Provincial Assembly, the Congress has 37 members. In the assembly party leader’s election on Wednesday, Baniya received 22 votes, Lama secured 14, and one vote was invalid.

Although Baniya has now been elected the Congress’ assembly party leader, it is still unclear whether he will become chief minister.

Chief Minister Lama has taken a firm stance that, although he lost the assembly party leadership, there is no legal obstacle for him to continue as chief minister, and therefore he will not resign. However, Baniya has stated that if Lama does not step down, he will be removed through legal and procedural means.

In Bagmati province, the Congress-led government is in place with the support of the UML, which has 27 seats in the provincial assembly. If Chief Minister Lama refuses to resign, the UML could withdraw its support. In that case, the new chief minister would have to seek a vote of confidence in the assembly.

If the new leader secures the vote, he can continue in office. If not, then he will be removed, paving the way for Baniya to become the new chief minister.

Since Baniya has now been elected the assembly party leader, Deuba appears keen to appoint him as the new chief minister.

A Congress insider said this is the reason behind Deuba holding the meeting with Oli. Earlier, Deuba had already suggested that Lama resign, but Lama refused, despite being in the minority in the Congress’ provincial assembly party.