Seven injured in Kathmandu blast

The Nepalese capital of Kathmandu was shaken by a large bomb yesterday, fraying the nerves of its regional neighbours, who have been growing increasingly uneasy about the violence and political upheaval.

Seven people were injured in the blast, the second since King Gyanendra dismissed the government just over a fortnight ago and installed a royalist cabinet in its place.

Security officials were in no doubt that the Maoist rebels, who have been seeking to overthrow the monarchy for six years, were behind the attack, which was in an area of the city usually packed with shoppers and workers.

Reports suggest that the Maoist rebels are in control of much of the countryside. Their position has been strengthened by the unpopularity of the king, who assumed power after almost all the Royal family was massacred last year. An estimated 5,000 people have died since their uprising began.

Yesterday, Nepal's six main political parties met to discuss how to respond to King Gyanendra's latest manoeuvres. In particular, they are concerned that the king has appointed Lokendra Bahadur Chand Prime Minister because he believed that the former leader, Sher Bahadur Deuba, was incapable of holding elections because of the Maoist threat. Mr Chand – seen by many as a puppet of the king – has called for talks with the rebels, but the Maoists have yet to respond.

The king has the authority to dismiss the elected government, but many believe he went too far and that his appointment of Mr Chand was unconstitutional.

"The king's actions have made the political situation complex and uncertain ... we need to join our efforts to bring it back into the constitutional track," said Arjun Narsingh, a spokesman for the Nepali Congress Party, the country's largest party.