61-year-old Khanal, who resigned on Monday succumbing to intense pressure from Nepali Congress and the Maoists, warned that there would be no national consensus if they stick to their stance.
"If Maoist couldn't be practical and if Nepali Congress remained adamant on their demand for their leadership in government, national consensus can't be formed," Khanal told lawmakers in a special address to 601-member Parliament.
He blamed the Nepali Congress and UCPN-Maoist, the two largest party in the Constituent Assembly, for not supporting CPN-UML led government on the critical issues of the peace process.
"Nepali Congress should have supported the government, but they didn't," Khanal said. "Maoist also could not support the government on peace process (according to) as my expectations," said Khanal, ending his 6-month 9-day long tenure as the 34th Prime Minister.
"Despite my continuous effort until the last minute, I couldn't ensure tangible progress in peace process by the deadline that I had set," he said.
Khanal said his administration was able to bring the Maoists on board at a time when the former rebels were sidelined from power.
He underlined that he had quit so that a national consensus is formed on the key issues.
"I became PM for national consensus," he said, adding "And, I am resigning for the same." "I became PM for national consensus," he said, adding "And, I am resigning for the same."