Kathmandu | The deadlock over the selection of an interim head to run the Nepal government continued on Thursday, even as President Ramchandra Paudel appealed for peace and said he was aiming to find a solution to the political crisis within the constitutional framework.

As political parleys for a transitional government continued, the situation in Kathmandu and other parts of the country remained peaceful, with army troops carrying out patrolling in sensitive areas. The death toll from two days of violent protests that began on Monday has increased to 34, according to officials.

The representatives of youth-led Gen Z, which spearheaded the anti-government protests, held meetings with the top military brass to finalise a transitional government, but the talks hit a roadblock on the issue of who will head it.

Former chief justice Sushila Karki, Kathmandu Mayor Balendra Shah, former CEO of Nepal Electricity Authority Kulman Ghising and Mayor of Dharan Harka Sampang were among those being considered by the protesting Gen Z group to lead the government, sources said.

Since the violence began on Monday, over 15,000 inmates have fled from more than 25 prisons, according to media reports.

The army, which has taken control of security, extended prohibitory orders in three districts of Kathmandu Valley while allowing public movement during specific windows, as the Himalayan nation gradually returned to normalcy. The curfew will remain till 6 am Friday, and then restrictive orders will be in place from 11 am to 5 pm. Then curfew will be imposed from 7 pm Friday to 6 am Saturday, according to the army.

"I am making every effort to protect democracy and to find a way out from the present political impasse within the constitutional framework while at the same time maintaining law and order,” said President Paudel, who is under military protection.

He was not seen in public after the Gen Z agitating groups burnt the president's office and his private residence on Tuesday.

"I appeal to all parties to be confident that a solution to the problem is being sought as soon as possible to address the demands of the agitating citizens and to cooperate in maintaining peace and order in the country with restraint," Paudel said, in his first comments since the ouster of Prime Minister K P Sharma Oli on Tuesday.

An Army spokesperson confirmed that discussions are ongoing with various stakeholders. He, however, did not provide any names.

“We are holding rounds of talks with different stakeholders. The talks are mainly focused on finding a way out from the current stalemate and at the same time maintaining law and order situation in the country,” he said.

Though sources suggested that Mayor Shah has expressed his support for Karki, the picture is still not clear as to who will head the new cabinet. Some of the activists expressed support for Karki, while others pitched for Ghising.

Meanwhile, the Ministry of Health said that 34 people have died so far during the protests held on Monday and Tuesday.

According to the ministry, 1,338 individuals are receiving treatment at hospitals across the country, while 949 have already been discharged.

Three inmates were killed and 13 others injured on Thursday during clashes with security personnel at the Ramechhap district prison in Madhesh province, officials said.

With the latest deaths, the number of prisoners who died during clashes with security forces has increased to eight since Tuesday.

“The jailbreaks began when youth protesters stormed multiple prison facilities, setting administrative buildings ablaze and forcing open prison gates. By Wednesday evening, preliminary reports confirmed that over 15,000 inmates had fled from more than 25 prisons,” The Kathmandu Post newspaper reported, quoting police.

Some leaders of the Gen Z group organised a press meet in Kathmandu, where they said that Parliament must be dissolved and the Constitution should be amended to reflect the will of the people. They underlined the need to find a solution through dialogue and cooperation.

They warned the old political parties not to use them for their vested interests. "This is purely a civilian movement, so don’t try to play politics with this,” one activist said.

"There is a challenge in front of us to protect national sovereignty, unity, and maintain self-respect," activist Diwakar Dangal said. "We all Nepalese should unite in this difficult situation to protect the welfare and interests of the Nepalese people.”

"We don’t intend to scrap the constitution, but we want some major amendments to include people’s concerns,” one activist said.

People were seen rushing to the markets, shops and groceries to buy essential goods when the curfew was lifted on Thursday. There were few vehicles on the roads, which still bore marks of the violence.

The army has warned that any form of demonstrations, vandalism, arson, or attacks on individuals and property would be treated as criminal acts and dealt with accordingly.

In a notice, the Department of Immigration said that those whose visa expired after September 8 and are staying in Nepal can get the exit permit without paying any fee.

"Foreign nationals whose Visas were valid up to Sept. 8 and who are required to depart during the curfew period shall be granted visa regularisation and exit permission without additional fees from the immigration offices at respective points of departure,” said the notice.

Similarly, essential arrangements have also been made for visa transfer for foreign nationals who lost their passport during the turmoil and have obtained a travel document or emergency passport from their respective embassies, it added.

Nepal Rastra Bank, the central bank of Nepal, has instructed all the commercial banks to operate and resume services from 10 am to 2 pm. The banks were shut down due to the violent protests by the Gen Z group.

The Supreme Court, which was completely damaged during Tuesday’s violence, is set to register and regularly hear petitions starting Sunday.

"Important documents from Nepal's judicial history are on the verge of destruction," said a statement issued by Chief Justice Prakash Man Singh Raut.

The Nepal Army has disposed of eight socket bombs recovered from the Nayabasti area of Banepa Municipality, some 60 km East of Kathmandu.

The security forces also recovered 97 illegal weapons from different parts of the country. These weapons were looted by individuals from security personnel during the riots.