It was mentioned well about the people's right in the constitution but in reality they couldn't be felt by the people. People protested against the activities of government. Understanding the sentiments of people king Birendra held the referendum for the two options: reformed panchyati system or multiparty democracy. The causes to be held the referendum were:
- People were deprived from fundamental rights.
- People opposed very aggressively activities of government.
- People dissatisfied to the panchyati system.
- People didn't like the suppression of government for huge procession against the death sentence to former Pakistani Prime Minister Z. A. Bhutto.