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He was elected as prime minister on February 3, 2011 and remained in the office till August 29, 2011. He has also held various ministries. He began his political career from ANNFSU and became politburo member of the then CPN-ML and went on to be chosen as the party’s general secretary. In 1991, he became the standing committee member for CPN-UML, the party formed with the unification of the then CPN-ML and CPN-Marxist. He was later elected as president of CPN-UML by the party convention held in Butwal in 2010. Khanal taught science for a year in Galkot High
School in Baglung but was arrested on charge of being involved in politics while being in teaching profession, leading to his expulsion from the school. He was again arrested in Ilam later and served a jail term of 14 months. He was again arrested and jailed for six months. He was one of the senior leaders of the left front during the historic 1990 people's movement. After the restoration of democracy in 1990, Khanal was appointed Minister for Agriculture, Land Reforms, and Forest and Environment in the interim government. He won the 1991 legislative election from Ilam and became Minister for Information and Communications in 1997.
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