Nepal's first Maoist Prime Minister Pushpa Kamal Dahal Prachanda on Monday announced his resignation in a televised address to the nation sending shock waves through the nation and raising grave questions about peace and stability in the turbulent Himalayan republic.

The former revolutionary's resignation came after two major allies of his coalition government pulled out Sunday following a long quarrel over the sacking of the army chief, leaving the Prachanda government under the cloud of a no-trust vote in parliament and likely defeat.