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Nepalese policeman chasing protesters. Residents of Nepal's capital faced more hardship as opposition parties declared economic war on King Gyanendra, with food and fuel shortages taking a toll after nearly two weeks of strikes and protests. (AFP)

Nepal's capital faced more hardship as opposition parties declared economic war on King Gyanendra, prompting threats of a new government crackdown as food and fuel shortages grew.

Late Sunday, an alliance of seven major political parties called on citizens to halt tax and utility bill payments and avoid patronising businesses run by the royal family, ahead of a mass protest in Kathmandu set for Thursday.

The parties also asked countries to stop all aid to the kingdom and Nepalis working overseas to delay sending money home to their families -- an important source of income in a country where annual per capita income is 240 dollars.

A government spokesman responded Monday by threatening a new crackdown.

"There will come a time when the security situation will become untenable and we have our legal options," Shrish Shamshere Rana, minister for information and communication, told AFP.

One option would be to call a state of emergency, Rana said, that would "suspend some rights of the people."

The parties aim to cripple the economy, already reeling from 12 days of non-stop strikes and protests and a decade-old Maoist insurgency, to force the king to restore democracy after 14 months of absolute rule.

Private banks were closed Monday and a petrol and kerosene shortage loomed in the Kathmandu Valley, home to 1.7 million people.

"I haven't been riding my motorcycle but wanted to fill up because I heard there was a shortage," said Ravi Sharma, a 19-year-old student waiting in a long line at a petrol station in Kathmandu.

Most shops in the capital remained shut Monday and few vehicles travelled the streets.

The strike has the backing of Maoist rebels, who entered a loose alliance with the Himalayan country's sidelined political parties last November.

The rebels declared a ceasefire around the capital but have continued attacks on police and troops elsewhere. Their decade-long revolt has claimed 12,500 lives.

The latest crisis prompted the royal government to extend a ban on protests that had been enforced by heavily-armed riot police using rubber bullets, tear gas and truncheons to disperse demonstrators. Protests have been held throughout the capital, including the main tourist area of Thamel.

An editorial in the state-run Rising Nepal newspaper repeated a call for dialogue and national elections made by Gyanendra last week, along with a warning to the press.

"By crossing the ethics of journalism some media persons are working against democratic norms and values. This must not be the case, as they must inform people impartially and without any other vested interest," it said.

When Gyanendra took over in February 2005, a state of emergency was declared for three months. Media freedom was severely curtailed, with soldiers in newsrooms censoring stories and some FM news stations taken off the air.

AFP

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