Nepal's King Gyanendra, facing sweeping anti-monarchy protests, said on Friday he was restoring political power to the people, but the country's largest party said that was not enough.
"Executive power of the kingdom of Nepal, which was in our safekeeping, shall from this day be returned to the people," King Gyanendra said in an address to the nation in the Nepali language.
"We ask the seven-party alliance to recommend the name for the post of prime minister at the earliest for the constitution of a council of ministers, which will bear the responsibility of governing the country in accordance with the constitution."
Krishna Prasad Sitaula, a spokesman of the Nepali Congress, a key constituent of the alliance, said the king had not "addressed the road map of the protest movement".
"Our protest campaign will continue," he said.
The king appeared to rule out any change of the constitution to curb his own powers, which has been a primary demand of the political parties. They have said elections to a constituent assembly, which would make such changes, was critical.
The parties, which have spearheaded more than two weeks of violent protests to force the restoration of democracy, are to give a joint response later, possibly on Saturday.
Looking serious and dressed in a Nepali cap and black jacket, Gyanendra said he was making the move "in keeping with the tradition of the Shah dynasty to reign in accordance with the popular will, in the greater interest of the nation and the people, and our unflinching commitment toward constitutional monarchy and multi-party democracy".
REACTION MIXED: The reactions of local residents were mixed.
"The king has given all he can," said Bobby Singh, a pilot with Royal Nepal Airlines. "Now the ball is in the seven-party alliance's court."
Prominent women's rights activist Prabha Thakar said: "It's the best news in a while. It's not the be-all and end-all, but at this point in time, I think there is definitely a light at the end of the tunnel."
The constitution issue was troubling, said Uttam Ghimire, a teacher. "I don't think the seven political parties will agree with him because their main demand is a constituent assembly and he has not addressed this demand."
Maoist rebels, who have a loose alliance with the seven-party alliance have insisted on a new constitution prepared by a constituent assembly as a precondition to joining the mainstream.
A decade-old revolt by the Maoists has killed more than 13,000 people.
Gyanendra sacked the government and took full powers in February 2005, vowing to crush the Maoists. At least 12 people have been killed and hundreds wounded in the pro-democracy campaign, which was launched on April 6.
The European Union and India both welcomed the king's pledge to hand over power.
US ambassador James Moriarty, speaking to Reuters Television just two hours before the address, said the king had no choice but to relent to the parties' demands.
"If he doesn't do that, I think the monarchy will not last and ... we are going to see a revolution inside Nepal. "It would mean wider chaos and it would mean a good chance for the Maoist insurgents to take over this country."
FRESH VIOLENCE: On Friday, protesters burned tyres and threw logs and barbed wire across the streets of the capital, Kathmandu, as a curfew imposed to prevent a march on the palace came into force.
Black smoke rose from several places in the city of 1.5 million people as protesters, angry at the king's sacking of the government last year, tried to block movement of police and troops.
Protesters burned a government revenue office on the outskirts of the capital and fought street battles with police elsewhere in the city. There was no word of serious casualties.
The curfew in Kathmandu began at 9 am (0315 GMT) and was to continue until midnight (1815 GMT), but was only being enforced within the city limits. On the ring road outside, tens of thousands marched, waved party flags and chanted slogans demanding the king leave the country.
Riot police, troops with automatic weapons and armoured cars stood at major intersections to bar protesters planning to march on the palace.