On November 30, 1994, following the 1994 parliamentary election, the Communist Party of Nepal (Unified Marxist-Leninist) formed a minority government led by Man Mohan Adhikari.

During his time in office, then chief of the World Bank, Paul Wolfowitz rejected funding the Arun III hydro-electric project[3] Also, the Adhikari government promoted programs such as the build-your-own-village-program.

[citation needed] In June 1995, the Rastriya Prajatantra Party and the Nepal Sadbhawana Party, who helped to form a minority government supported the Nepali Congress's call for a vote of no-confidence in Adhikari's government in a special session of the House of Representatives.

But a Supreme Court challenge led by the Congress saw this move deemed unconstitutional and the parliament was restored.

Elections in 1995 saw Adhikari's government voted out of office and made Nepali Congress's Sher Bahadur Deuba the next Prime Minister of Nepal.