🇳🇵 Nepal in Transition: Political Instability, Economic Pressures, and Digital Reforms Define the Day

by nep123 · June 27, 2025

Nepal is undergoing a significant transformation as major developments unfold across political, economic, educational, and social landscapes. The recent political rift, economic volatility, breakthrough energy deals, and tech-driven social initiatives reflect a nation in motion—striving for stability and progress in the face of challenges.

🔴 Political Shake-Up: Oli Government Faces Minority Status in National Assembly

The coalition government led by Prime Minister KP Sharma Oli has slipped into a minority status in the National Assembly after losing the support of the Janata Samajwadi Party (JSP) Nepal. JSP’s vice-chair Shivlal Thapa cited dissatisfaction over the government’s stance on corruption control, governance reforms, economic progress, and constitutional amendments as reasons for withdrawing support.

Despite this setback in the upper house, the ruling coalition still maintains a comfortable majority in the House of Representatives, and political analysts suggest the move will not result in immediate instability. Meanwhile, PM Oli is preparing for a state visit to Spain, aiming to attract global investment in sustainable development initiatives for least developed countries.

⚖️ Judicial Moves and Leadership Controversies: Bidhya Bhandari’s Return to Politics?

In the judiciary, a major development unfolded with the formation of the Cooperative Debt Recovery Tribunal, nearly eight years after relevant legislation was passed.

On the political front, former President Bidhya Devi Bhandari’s rumored re-entry into active politics has caused a stir within her party, the CPN-UML. Her close allies have launched a digital campaign promoting the slogan: “People’s Multiparty Democracy: Madan’s Vision, Bidhya’s Leadership.”

Party General Secretary Shankar Pokharel has reportedly proposed constitutional amendments to restrict ex-presidents from assuming active party leadership, warning it could weaken the republic. However, several senior party members have publicly supported Bhandari’s right to reengage politically.

In another major blow to political integrity, former Prime Minister and CPN (Unified Socialist) Chairman Madhav Kumar Nepal is facing a corruption lawsuit from the Commission for the Investigation of Abuse of Authority (CIAA) regarding the controversial Patanjali land deal. The Special Court has set a bail of Rs. 3.5 million, while his party has dismissed the charges as politically motivated.

📚 Education: SEE 2081 Results Show Progress Amid Reforms

Nepal’s education sector witnessed a significant milestone with the publication of SEE 2081 results. A total of 61.81% of students received graded results, marking a 13.95% improvement over the previous year. Education experts credit this progress to systemic reforms and increased efforts at the grassroots level.

Moreover, a consensus has been reached on key points in the new School Education Bill, including:

Allowing private schools to operate under an educational trust model
Introducing a two-year Early Childhood Education program
Mandating Grade 12 completion as the minimum qualification for early childhood facilitators

📉 Economic Snapshot: NEPSE Drops Below 2600 as Investor Sentiment Weakens

Nepal’s economic outlook remains mixed. The NEPSE index dropped by 33.17 points, slipping below the critical 2600-point threshold, while total turnover decreased to Rs. 25.44 billion. Analysts attribute the decline to year-end tax pressure, installment payments, and institutional selloffs.

Investor groups are calling for several reforms in the upcoming Monetary Policy, including:

Removal of the Rs. 150 million share loan cap
Simplified share trading rules for banks and financial institutions
Relaxation of dividend caps for microfinance institutions
Easier access for Non-Resident Nepalis (NRNs) to invest in the capital market

🏦 Regulatory Push: Casino Oversight Tightened Under AML Framework

The Department of Tourism has issued a new regulatory framework—“Risk-Based On-Site Inspection and Off-Site Supervision Guidelines 2082”—to strengthen casino oversight. Casinos operating in four and five-star hotels are now required to submit monthly financial reports to relevant government bodies.

The guideline is part of anti-money laundering (AML) reforms to help remove Nepal from the FATF’s Grey List, aligning with Section 7 of the Asset Laundering Prevention Act 2064.

⚡ Energy Diplomacy: China Connection and Historic Power Export to Bangladesh

Nepal’s energy diplomacy has taken a significant leap forward. Plans are underway to establish a 220 kV transmission line from Rasuwagadhi to Chilung, potentially linking Nepal’s grid to China. Meanwhile, Nepal has already finalized an agreement to export electricity to Bangladesh via India’s transmission network.

Energy Minister Deepak Khadka has set an ambitious goal: 28,500 MW power production and 15,000 MW exports by 2025. Though generation is increasing, the issue of frequent tripping remains unresolved. The government’s decision to eliminate the controversial “Take and Pay” clause in power purchase agreements has been hailed by producers as a landmark reform.

🚗 EV Revolution: Imports Surge Past Rs. 40 Billion in 11 Months

Nepal’s electric vehicle (EV) market is booming. In just 11 months, 16,559 EV units have been imported, worth over Rs. 40.89 billion, according to the Department of Customs. Dealers attribute the spike to fears of upcoming tax hikes.

Notable highlights:

Shashila Motors recorded EV sales worth Rs. 518 million in 9 months
Popular launches include Hyundai Creta EV, BYD Dolphin 2025, and Foton Tunland G7
New showrooms from LS Auto and others are expanding access
Safety concerns grow as inexperienced drivers cause more EV microvan accidents
NADA officials assert that EV battery production is possible within Nepal

🧑‍💻 Digital & Social Security: Two New Apps Launched for Migrant Workers

In a tech-forward move, the government has launched two new mobile applications to enhance migrant worker protection:

“Shram Sansar” App: Collects personal and locational data of Nepalis working abroad
“Haami” App: Offers vital updates and documentation support for Nepalis working or traveling to South Korea

Both platforms are being managed by the Ministry of Foreign Affairs and aim to provide digital security and accessibility for Nepalis working overseas.

🚨 Law & Order: Drug-Free Homes and Crime Crackdowns

The Nepal Police have launched the “Drug-Free Household Campaign 2082” in coordination with Lalitpur Metropolitan City and the District Administration Office. Additionally, several criminal operations have been uncovered, including:

Arrests of fugitives in banking fraud cases
Online scam rackets exposed
A shocking child rape and murder case in Sindhupalchok, with 5 individuals arrested

🌧️ Climate and Agriculture: Monsoon Alert and National Paddy Day

With the monsoon season intensifying, the Department of Hydrology and Meteorology has issued alerts for heavy rainfall in multiple districts.

Meanwhile, the nation celebrated the 22nd National Paddy Day with the slogan:
“Intensification in Paddy Cultivation: Food Security and Self-Reliance.”
The government aims for self-sufficiency in rice production within two years.

🌍 International Tensions: Israel-Iran Conflict Sparks Concern Among Nepali Workers

Rising geopolitical tensions between Israel and Iran have alarmed the Nepali diaspora working in the Middle East. The Nepali Embassy has urged workers to remain vigilant and avoid conflict zones.

In India, a probe has begun into the mysterious death of a tigress and her four cubs, raising concerns over wildlife protection and illegal activities.

✅ Conclusion: A Nation at the Crossroads of Change

From political shifts and judicial actions to economic tremors and social innovations, Nepal is navigating a critical juncture. The country is striving to balance domestic reform, technological advancement, and international cooperation as it forges a path toward a more resilient and future-ready nation.