Nepal's Prime Minister has resigned and fled after protesters burned down his house and chased his finance minister through the streets before attacking him, following public fury over a social media ban.

Young Nepalis are leading angry protests across the country, with violence spreading in the capital and other cities.

After enraged crowds torched KP Sharma Oli's home, a new video footage has shown how Bishnu Prasad Paudel was pursued and set upon by a mob through the streets of Kathmandu.

In the shocking clip, Paudel, 65, is seen sprinting down a road as dozens run after him. A protester coming from the other side leaps and kicks him, sending him crashing against a red wall.

The government official quickly gets up, stumbles, but starts running again before the video ends. Paudel, who doubles as the deputy prime minister of the country, has faced intense criticism since he began running Nepal's economic affairs last year.