The Maoists have said they have called off all 'offensive actions' in Kathmandu Valley from Monday evening until further notice.

The announcement comes amidst indications of a confrontation between the government and the seven party alliance which has announced a four day strike 6-9 April and a mass rally in Kathmandu on 7 April.

Home Minister Kamal Thapa had warned the parties they would be treated like terrorists if they went ahead with the strike and rally because of what he said was information that the rebels were planning to use them to infiltrated Kathmandu and unleash violence. The parties had been calling on the Maoists to declare a ceasefire so the government wouldn't have any excuse to crackdown on what they said would be a peaceful pro-democracy rally on Friday.

The statement issued Monday and signed by Prachanda appears to be a compromise to remove any pretext for the government to use force to foil the rally.