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"There may be presidential rule, " says Gagan Thapa from the opposition Nepali Congress Party.
BBC: Nepal's political deadlock reaches crisis point
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Then the opposition Nepali Congress Party expects to move into government to oversee elections.
ECONOMIST: Nepal: Peace, in your own time | The
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The present government is a wobbly coalition whose main members are Mr Koirala's centrist Nepali Congress Party and a leftist party.
ECONOMIST: Mao guns again
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Mr Nepal knows he is the man to beat at the polls, especially if the Nepali Congress now formally splits into factions.
ECONOMIST: A general election is called
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Even as fuel got dearer--Nepal imports all its requirements from India--the outgoing Nepali Congress-led government dithered to the last in raising prices.
FORBES: Himalayan Vistas
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Reports suggest that two opposition parties, the Nepali Congress (NC) and the Unified Marxist Leninists (UML), refused a compromise offered by ethnic groups.
ECONOMIST: Gridlock over a new constitution leaves a power vacuum
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Yet even as the new money was giving a shine to the country's ailing finances, cracks were appearing in Mr Deuba's own, fissiparous, Nepali Congress party.
ECONOMIST: A general election is called
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Although there is general agreement over integration and rehabilitation, the opposition Nepali Congress Party is also insisting that the Maoists hand over their weapons as part of the deal to extend the constitutional deadline.
BBC: Nepal's political deadlock reaches crisis point
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As one strategist for the Nepali Congress, the largest of the democratic parties, admitted, the Maoists' interests lie in further polarising Nepali politics, whereas the stated aim of the parties is to build a democratic consensus on the middle ground.
ECONOMIST: Everyone against the king
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The congress also encompassed an exhibition of eight different ethnic communities based on field work carried out by the NFS. An international poetry recitation and folk-performance on the occasion of the birth-centenary of the Nepali poet Siddhicharan Shrestha was also part of the congress.
UNESCO: Intangible culture focus of Fourth International Folklore Congress in Kathmandu | United Nations Educational, Scientific and Cultural Organization