Kathmandu, Nov 26: The government and the campaign group “Save the Nation, Nationality, Religion, Culture and Citizens” reached an agreement at the Prime Minister’s residence in Baluwatar on Saturday.

 Signed by Prime Minister Sushila Karki’s chief adviser, Ajay Bhadra Khanal, and the campaign’s secretary, Premdeep Limbu, the deal calls for halting the ongoing protest and continuing talks on demands, including the restoration of the monarchy. This marks the first time the demand for reinstating the monarchy has formally reached the Prime Minister’s table.

While questions remain about the deal’s effectiveness, given past agreements often went unheeded, the government, wary of potential protests from the Durga Prasai-led group, appears to have taken the demands seriously. Present during the signing were Prasai’s son Nirajan Prasai, Home Minister Om Prakash Aryal, and advisers Khanal and Govinda Narayan Timilsina.

A day after the agreement, the Supreme Court ordered Durga Prasai’s release on a habeas corpus petition. Though it seemed the court had granted his freedom, coordination for his release had already been set following Saturday’s understanding at Baluwatar.

Earlier, the campaign submitted 27 demands, including restoring the monarchy, scrapping the constitution, declaring Nepal a Hindu state, removing the provincial structure, reintroducing five development regions, 14 zones, and 75 districts, and implementing a directly elected executive. Other demands addressed Gen Z protest issues, investigation of former government officials, loan waivers up to 2 million rupees, and repayment of larger loans at 5 percent interest over 25 years.

The Saturday talks also led to an agreement to withdraw the protest planned for Mangsir 7 and to hold follow-up talks with the campaign leadership as soon as possible. The Prime Minister’s Secretariat confirmed that discussions covered all key demands, including monarchy restoration and establishing a Hindu state, while pledging continued talks considering security concerns.

Prasai’s midnight arrest by the Karki government drew criticism from civic figures, the National Human Rights Commission, and even former Prime Minister KP Sharma Oli. Police had detained him at 12:30 a.m. in Bhaktapur for disturbing public order. Legal experts and activists condemned the act as a major violation of civilian governance. Prasai has long pushed for monarchy restoration and maintains close contacts with the military and other power centers, prompting caution among top officials.