May 28, 2006: The government and the Maoists have agreed to stop fighting each other and to hold elections (in the next six months) for a new government and constitution. The Maoists no longer insist on a communist dictatorship, but they won't disarm until after new elections, and they won't stop collecting "revolutionary taxes" (extortion payments) that sustain them. This means that, when new elections are held, if the Maoists do not get the support they want, they will go back to violence. The Maoists are not popular, as their power has come largely from terror and extortion. A recent opinion poll indicates that the majority of the population wants the monarchy retained, while the Maoists insist that it goes.

The Maoists admit that communism has not worked in other countries, but that the Nepalese Maoists can make it work in Nepal.

May 25, 2006: The government released all Maoists being held in prisons throughout the country.