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Former President Bidya Devi Bhandari returned home on Monday after completing a 10-day China visit, during which she held talks with senior leaders of the Communist Party of China (CPC) and government officials.

Her visit came amid her recent, unannounced but increasingly active involvement in party politics, drawing significant attention from both political and strategic circles. In the weeks leading up to the trip, Bhandari toured various provinces, engaging with local leaders and cadres, and has become more vocal about her ambition to lead the CPN-UML. She has ignored public concerns that former heads of state should stay away from active politics to preserve the dignity of the presidency. Bhandari was accompanied by Raghubir Mahaseth, head of the UML’s international department, Minister Damodar Bhandari and other senior leaders, who have distanced themselves from Prime Minister and party chairperson KP Sharma Oli. In Beijing, she was accorded a moderate level of respect.

Although Chinese President Xi Jinping did not meet her, Bhandari held talks with Chinese Vice-President Ji Bingxuan and Liu Jianchao, Minister of the CPC’s International Department and a prominent Chinese leader known for his close engagement with Nepali political figures.

Bhandari’s main event in Beijing was her participation in a conference of political parties from China’s neighboring countries, themed “Building a Community with a Shared Future with Neighboring Countries: Political Parties in Action,” held on May 25–26.

The reception Bhandari received as a senior UML figure must be viewed in the light of her past role and potential political future. As President from 2015 to 2022, she played a crucial part in enhancing Nepal’s engagement with China. She frequently encouraged successive governments to advance the Belt and Road Initiative (BRI). During her tenure, she attended the second BRI summit in 2019 and helped finalize the protocol on the Transit and Transport Agreement signed in 2016.

In 2017, Bhandari launched Chinese President Xi Jinping’s book, “The Governance of China,” at a special ceremony held in Shital Niwas. She also endorsed China’s Global Security Initiative (GSI) by attending a high-level video conference, despite opposition from Nepal’s Ministry of Foreign Affairs. The year 2019 saw Xi’s historic visit to Nepal, during which several strategic agreements were signed, significantly deepening bilateral cooperation. These developments have shaped the Chinese perception of Bhandari as a dependable figure in Nepal's political landscape.

For Beijing, the return of a China-friendly leader like Bhandari to active politics could be welcome news. Members of her delegation have publicly claimed that China encouraged her to initiate efforts to unify Nepal’s communist parties—a long-held preference of the Chinese leadership. However, such claims should be taken with caution, as Chinese officials rarely make such direct statements.

Within the UML, some leaders believe that if Bhandari becomes party chair, the long-elusive unification with the CPN (Maoist Centre) could be revived—something hindered by personal rivalries between Oli and Maoist Chairman Pushpa Kamal Dahal. While Bhandari is certain to return to UML politics, it remains unclear whether she will take a confrontational path against Oli or whether Oli will voluntarily step aside. Oli has recently stated that his health permits him to remain politically active for the next 15–20 years, suggesting he is unlikely to support a unification narrative that credits Bhandari over himself.

Bhandari’s visit is unlikely to have any immediate or direct impact on UML’s internal dynamics, despite some sidelined party leaders hoping it will accelerate her rise to the helm. Her supporters are trying to portray the visit as an indication that China backs her leadership, suggesting she is capable of uniting Nepal’s fragmented communist forces. However, there are ample reasons to remain cautious. Open Chinese support for Bhandari could antagonize both Oli and the Nepali Congress (NC). A senior UML leader, speaking on condition of anonymity, noted that China prioritizes political stability in Nepal and may support left unity only if it contributes to that goal—but without backing one leader at the expense of alienating others.

Nevertheless, the perception of Bhandari’s close ties with Beijing may cause ripples within the UML. Ironically, this perception could even bring Oli and New Delhi closer. China, meanwhile, appears to have realized that its earlier emphasis on communist unification risked alienating other key actors in Nepal, including the NC. Given the current state of relations, observers say China is unlikely to openly push for left unity at the cost of broader political balance.

In Beijing, Liu Jianchao met Bhandari and, according to the Chinese readout, acknowledged her longstanding contributions to China-Nepal relations. “Inter-party exchanges play an important role in China–Nepal relations,” the readout stated. The CPC expressed its willingness to strengthen engagement with all Nepali political parties and deepen exchanges in governance and administration through the “political party +” channel. Bhandari, for her part, emphasized Nepal’s commitment to finding a development path suited to its own conditions and expressed interest in learning from China’s experience in party-building and governance. 

During her address at the CPC dialogue, Bhandari praised the CPC’s governance model, stating: “The historical experience and contemporary practice of the CPC are of great reference to Nepal’s economic and social transformation and also provide important reference for developing countries around the world to explore the path of modernization.” She further stated that China’s vision of building a “community with a shared future” offers a powerful example for regional cooperation and solidarity. By amplifying China’s development model in her speeches, Bhandari is aligning herself closely with Beijing’s strategic messaging.

The US, under the Donald Trump administration, is steadily adopting a more aggressive stance toward China—an approach that is likely to reshape the foreign policy landscape for small South Asian countries like Nepal. Washington’s hardening posture is evident across multiple fronts: trade, technology, education and military strategy in the Indo-Pacific.

A major flashpoint has been trade. The Trump administration imposed a steep 145 percent tariff on Chinese goods—though currently paused—with expectations that the tariff war will escalate further. Simultaneously, the US State Department announced plans to revoke visas for Chinese students, especially those linked to the Chinese Communist Party or studying sensitive technologies, drawing sharp condemnation from Beijing.

The technological rivalry is already underway, but the conflict appears to be broadening. In a striking statement this week at the Shangri-La Dialogue in Singapore, US Defense Secretary Pete Hegseth declared that the United States is prepared to take a confrontational approach toward Beijing, a move that has unsettled many Asian capitals.

“As our allies share the burden, we can increase our focus on the Indo-Pacific: our priority theater,” Hegseth said. Emphasizing that the futures of the US and its Indo-Pacific allies are “bound together,” he noted that America's own security and prosperity are linked to those of its allies. “We share your vision of peace and stability, of prosperity and security, and we are here to stay,” he added.

Hegseth outlined a vision for the Indo-Pacific based on mutual interests, sovereignty and commerce—not conflict. “On this sure foundation of mutual interests and common sense, we will build and strengthen our defense partnerships to preserve peace and increase prosperity,” he stated.

Yet, he made it clear that the US will resist any attempt by China to assert dominance. “We do not seek conflict with Communist China, but we will not be pushed out of this critical region, and we will not let our allies and partners be subordinated or intimidated.” These remarks come at a time when US allies in South Asia are already facing economic strain due to the US-led trade war. The pressure is particularly acute for countries like Nepal, which have a limited maneuvering room in great-power rivalries.

Hegseth also raised alarm over China’s preparations to use force for the “unification” of Taiwan—a move he warned could trigger a global crisis. “There’s no reason to sugarcoat it: the threat China poses is real, and it could be imminent,” he said, stressing that while China’s exact intentions remain uncertain, the US and its allies must prepare with “urgency and vigilance.”

The Chinese Foreign Ministry (FM) stated on Sunday that Hegseth ignored the calls of regional countries for peace and development, promoted a Cold War mentality of bloc confrontation, smeared and attacked China, and exaggerated the "China threat theory"—remarks that were full of provocation. In fact, the US is the world's true hegemonic power and the biggest factor undermining peace and stability in the Asia-Pacific region, China said.  In order to maintain its hegemony and advance the so-called "Indo-Pacific Strategy," the US has deployed offensive weapons in the South China Sea, stoked tensions, and created instability—turning the region into a "powder keg" and arousing deep concern among regional countries, said China’s FM. 

A military conflict over Taiwan would place enormous pressure on countries like Nepal to take sides—much like the diplomatic tightrope it walked during the Russia-Ukraine war. While Nepal officially supports the one-China policy, joint statements in recent years have gone further, explicitly stating that “Nepal opposes Taiwan independence.”

Foreign policy experts warn that such language could box Nepal into supporting a future Chinese military action, compromising its neutrality. Further reinforcing this strategic posture, US Air Force Secretary Troy Meink told graduating cadets this week that the Indo-Pacific will define the military challenges of their generation. “The Indo-Pacific will be your generation’s fight, and you will deliver the most lethal force this nation has ever seen—or we will not succeed,” Meink said. He warned that the strategic competition with China is wide-ranging and unpredictable, adding, “There will be no sanctuaries.”

While the Trump administration has significantly cut development aid to countries like Nepal, it has signaled an intention to deepen defense cooperation in the region. Given Nepal’s strategic location between China and India, observers believe the US is likely to step up military engagement with Kathmandu in the coming years, further complicating Nepal’s delicate geopolitical balancing act.

There is a glimmer of hope that the long-pending transitional justice process in Nepal might finally be moving forward. The government has recently appointed heads and members to both the Truth and Reconciliation Commission and the Commission of Investigation of Enforced Disappeared Persons. However, skepticism remains widespread regarding whether the new leadership will truly be able to navigate and resolve the deeply complex and often contentious issues inherent in this process. Concerns have been raised about the potential inexperience of some nominees, the possibility of undue political influence and the absolute necessity of providing these commissions with adequate resources to carry out their critical work effectively. It’s important to remember that over 60,000 complaints are currently awaiting thorough investigation, which underscores the magnitude of the task ahead.

In an effort to highlight the urgent issue of climate change and its impacts on the fragile Himalayan region, the government is preparing to host the Sagarmatha Sambaad from May 16 to 18 in Kathmandu. This event aims to draw global attention to the specific vulnerabilities of mountain ecosystems. The government has extended invitations to 175 foreign representatives, including environment ministers from various countries. The presence of these international figures is intended to foster dialogue and collaboration on addressing climate challenges. However, the government has failed to ensure participation of heads of government and state, which could impact the summit’s overall influence.

The government’s continuing delay in appointing a new governor for the Nepal Rastra Bank is drawing increased criticism from various sectors of society. While both the ruling Nepali Congress and the CPN-UML assert that there are no political disputes hampering the process, the appointment remains stalled. This delay has rendered the government-formed recommendation committee effectively obsolete. In a further development, one of its members, Biso Poudel, has recently resigned from the committee, amidst speculation that he himself hopes to be appointed as the governor. Speaking at a public event on May 15, Prime Minister Oli said that he does not have a preferred candidate in mind, but emphasized his desire to see a highly capable individual take on the crucial leadership role.

On the political front, royalist forces have announced their intention to launch street protests beginning May 29. Their aim is to pressure the mainstream political parties into considering the restoration of the monarchy and the reinstatement of a Hindu state. Last week, former King Gyanendra Shah met with a number of pro-monarchy leaders, reportedly to encourage them to mobilize an impactful movement. It is worth noting that while royalist forces have historically been divided, there have been recent attempts to project a unified front. In response to these preparations, major political parties, particularly the UML and CPN (Maoist Center), have issued strong warnings against any attempts to bring back the monarchy. These parties have also directed their respective youth organizations to actively counter the planned protests by the royalist factions.

In parliamentary affairs, discussions are currently underway in the lead-up to the annual budget. Lawmakers from across the political spectrum are using this opportunity to voice their views and priorities regarding the upcoming budget. The government’s policy and program have already been endorsed by the Parliament, setting the broad parameters for the fiscal year ahead. Finance Minister Bishnu Poudel is now focusing on securing support from not only the ruling parties but also the opposition to finalize the budget.
As Nepal anticipates the arrival of the monsoon season in the coming months, predictions indicate that the country is likely to receive higher than average rainfall this year. A recent incident in Kavre district is a stark reminder of the potential dangers. A heavy rain event caused temporary blockage of the BP Highway and resulted in damages in the Panauti area of Kavre. This incident should serve as a wake-up call for government agencies, highlighting the urgent need for thorough preparations to cope with possible monsoon-induced disasters. Authorities are urged to prioritize critical infrastructure, particularly the main highways, in their mitigation efforts.

On a more positive note, the banking sector in Nepal is currently experiencing a steady rebound in credit growth. This positive trend is largely attributed to the rise in foreign trade and the increased demand for loans across key sectors of the economy. A recent report from the Nepal Rastra Bank indicates that private sector credit from banks and financial institutions grew by seven percent, reaching Rs 5,534.77bn, during the first nine months of the current fiscal year 2024-25. This growth reflects a credit disbursement of Rs 361.3bn between mid-July 2024 and mid-April 2025. To put this in perspective, credit growth was 5.1 percent during the same period of the previous fiscal year, with a total credit portfolio of Rs 5,167.17bn in mid-April of last year. On a year-on-year basis, credit disbursement grew by 8.3 percent in mid-April.

Lastly, China’s Deputy Speaker and Vice Chairman of the Standing Committee of the National People’s Congress, Ziao Jie, who arrived in Nepal on May 14 to participate in the Sagarmatha Sambaad, is taking the opportunity to engage with Nepali leaders and Parliament. He has already met with Prime Minister Oli and is scheduled to meet with Speaker Dev Raj Ghimire, National Assembly Chairman Narayan Dahal, and various cross-party leaders. 

Parliamentary cooperation between Nepal and China formally began in 2022.

Royalist parties such as the Rastriya Prajatantra Party (RPP) currently believe that restoring the monarchy through street protests is unlikely—at least for now. They are of the view that instead of taking to the streets, their focus should be on strengthening their position in Parliament and through elections.

Since 2008, the RPP has consistently advocated for the restoration of the monarchy and a Hindu state. But the current situation marks a notable departure from the past, primarily due to former King Gyanendra Shah’s apparent decision to take a more active role in the movement. Shah reportedly believes a united royalist street campaign could pave the way for his return as monarch.

Recently, the former king met dozens of supporters, including senior and youth leaders of various royalist parties, at a hotel in Nagarkot. At least two leaders present at the meeting told ApEx that Shah appeared more outspoken and optimistic than ever about reviving the monarchy.

According to leaders, Shah believes that the crowd that welcomed him at Tribhuvan International Airport on March 9 is a ‘public endorsement’ for his return to power. He has urged his supporters to mobilize even larger gatherings in the streets. 

While the former monarch believes that political parties should spearhead the movement, he is reportedly skeptical of current RPP Chairman Rajendra Lingden’s leadership. Multiple sources say Shah has expressed dissatisfaction with Lingden’s performance and certain RPP agendas. The former king believes a more charismatic leader is needed to lead the movement, said one leader on condition of anonymity.

After considerable behind-the-scenes effort, Shah has succeeded in uniting royalist forces under the leadership of Navaraj Subedi. Prominent figures such as Lingden, Kamal Thapa and other veteran RPP leaders have now agreed to join a united campaign set to begin after May 29. To make the movement effective, Shah has shared a set of strategic suggestions. The protests should be continuous rather than one-off events, should draw participants from outside the Kathmandu Valley, and should be supported by a broader awareness campaign around the royalist agenda.

However, some within RPP argue that by sidelining Lingden and promoting Subedi, Shah is alienating the very party that has long championed the royalist cause. This means RPP will support the movement, but it may not participate actively, said one party leader.

Following an extended conversation with the former king, some supporters have concluded that there is a growing disconnect between their vision of a ceremonial monarchy and what Shah seems to envision. Several leaders now suspect that Shah may not be willing to remain a symbolic figurehead if the monarchy is revived.

Shah has also acknowledged missteps, notably the controversial appointment of Durga Prasai to lead the March 28 protest, which turned violent. He believes that political figures—not non-political activists—should be at the forefront, though he has yet to name a clear preference beyond backing Subedi for the time being. Shah has also urged his supporters to resolve internal divisions within the royalist camp.

Some RPP leaders remain frustrated with Shah’s stance. They feel he has been reluctant to credit RPP for sustaining the pro-monarchy agenda over the years. During the last RPP convention, former RPP Chairman Thapa publicly accused Shah of interfering in party politics by backing Lingden for party leadership. After losing to Lingden, Thapa left the party, openly blaming Shah for meddling. Now, three years later, Shah appears equally disappointed with Lingden’s leadership.

The former king has told his supporters to advance his vision of the Prithvi Path—a roadmap for nation-building based on the Dibya Upadesh (Divine Counsel) of King Prithvi Narayan Shah. In a video message released on the eve of Nepali New Year 2082, Shah reiterated that the Dibya Upadesh remains highly relevant even today.

Since March 9, Shah has grown more vocal in expressing his desire to return to the throne. He has framed the recent royalist protests as a sign of the people’s awakening. Yet many who have met and spoken with him remain puzzled by his confidence.

As the May 29 protests approach, their direction and impact remain uncertain. The government has already signaled it will crack down on the movement. Senior leaders of major political parties have issued warnings against organizing such protests. Over 100 people, including Rabindra Mishra, Dhawal Shumsher Rana, and Durga Prasai, were arrested in connection with the March 28 violence.

The coalition government of the Nepali Congress (NC) and CPN-UML has unveiled its annual policies and programs without any major disagreements between the two parties. Parliamentarians are currently deliberating on the policy document, with some NC leaders expressing reservations, noting that certain core agendas of the UML appear to have been prioritized. Historically, the annual program and budget have often sown discord among coalition partners. Lawmakers are now offering their suggestions on the policy document. Meanwhile, the main opposition, CPN (Maoist Center), has expressed dissatisfaction, particularly over the omission of several projects previously announced by Pushpa Kamal Dahal.To preempt potential tensions over the budget, Finance Minister Bishnu Paudel has begun consultations with NC leaders, while also continuing dialogue with the Maoist Center.

A recent friendly exchange between Prime Minister KP Sharma Oli and Maoist Chair Dahal has sparked speculation, with some political analysts predicting a possible collaboration between the two communist parties. However, the UML leadership has concluded that recent efforts to destabilize the government have lost momentum. Some believe that while the NC is negotiating with the government over key positions, Oli is attempting to increase his leverage by adopting a conciliatory approach toward Dahal.

Meanwhile, Dahal’s repeated overtures to the NC have failed to yield meaningful results. NC President Sher Bahadur Deuba reiterated this week that there are no significant problems within the coalition. On the delay in appointing the Governor of Nepal Rastra Bank, Deuba attributed it to internal issues within the NRB, denying any inter-party disagreement. His remarks come amid reports suggesting that disputes over the appointment could strain the coalition—an argument supported by past experiences where minor issues, rather than ideological differences, led to the collapse of alliances.

The ongoing pro-monarchy protests have weakened significantly, though royalist parties and allied groups continue to mobilize. Buoyed by an increase in supporters, former King Gyanendra Shah has been meeting royalist forces to encourage continued protests. Learning from the violent March 28 protest in Tinkune, the former king now appears to be backing political outfits such as the Rastriya Prajatantra Party (RPP). The pro-monarchy movement under Navaraj Subedi has announced an indefinite protest beginning May 29. Subedi has managed to bring RPP Chairman Rajendra Lingden, RPP-Nepal Chairman Kamal Thapa and Keshar Bahadur Bista into his fold—an unexpected development, given Lingden’s earlier reluctance to accept Subedi's leadership. This comes against the backdrop of a meeting between Shah and RPP leaders.

Relations between the NC and China, strained since 2015, are slowly improving. After a prolonged hiatus, senior NC leaders are visiting China at the invitation of the Communist Party of China (CPC), which appears to be stepping up its outreach. This week, NC President Deuba, senior leaders Shekhar Koirala, Shashank Koirala and others attended a photo exhibition on Nepal-China ties. At the event, Deuba reaffirmed NC’s commitment to the one-China policy and pledged that Nepali soil would not be used for anti-China activities—messages well received by the Chinese side.

Prime Minister Oli has also continued efforts to make appointments to transitional justice bodies. This week, he met with Dahal to discuss the matter, but no significant progress was made. Sources close to the discussions admit that the appointments are complex, with divisions not only among political parties but also among conflict victims and various domestic and international stakeholders. Home Minister Ramesh Lekhak has said the government is committed to addressing victims’ concerns. However, Nepal’s human rights community—seen as having a significant stake in the process—is often accused of obstructing progress due to personal or institutional interests.

Nepal has stepped up security across border areas, airports and other sensitive zones in response to escalating tensions between India and Pakistan. The situation intensified after India launched “Operation Sindoor,” conducting airstrikes on nine terrorist sites in Pakistan and Pakistan-administered Kashmir following the April 22 terrorist attack in Pahalgam, which killed 26 people, including one Nepali citizen.

In other developments, the United States has announced an 85 percent cut in USAID programs, citing a shift to align foreign aid with American strategic interests. The US has started transferring the remaining programs that match its revised priorities. In Nepal, the future of the Millennium Challenge Corporation (MCC) remains uncertain, and the US has not clarified the status of remaining USAID-funded projects.

Since the 1950s, America’s development assistance to Nepal has steadily increased. However, after Donald Trump was re-inaugurated as the 47th President of the United States, this assistance was significantly cut, straining small countries’ health, education, and humanitarian sectors.

Small nations are increasingly viewing superpowers as unreliable partners, as assistance and projects have often been canceled midway. Experts say at the very least small countries should have been given time to find alternative sources of funding before support in critical sectors like health and education was withdrawn.

While the exact figures remain unclear, dozens of non-governmental organizations (NGOs) have canceled projects previously supported by USAID. Referring to America’s Millennium Challenge Corporation (MCC) during an internal party meeting, Prime Minister KP Sharma Oli noted that agreements signed after years of deliberations were abruptly terminated.

With media reports suggesting that the Trump administration might shut down the MCC, there is growing concern in Nepal that two major projects—a cross-border transmission line and a road upgrade—could be affected. Prime Minister Oli says that Nepal should not overly rely on foreign aid. In a direct reference to the MCC, he noted that even though the parliaments of both countries had ratified the compact, the US unilaterally decided to terminate it.

Foreign policy experts say the new US administration’s policies pose both challenges and opportunities for countries like Nepal, which have relied heavily on foreign aid for decades, even in critical sectors like health. In the short term, countries will struggle to secure funds, impacting infrastructure development. But in the long run, experts say it presents an opportunity to reduce dependency on foreign assistance.

Nilanthi Samaranayake, an independent analyst based in Washington, DC, says that smaller countries are clearly affected by the shift in US international engagement policy and that they should reassess their economic and security dependencies on the US.

Nepal, she suggests, should seek a broader range of international partners beyond just the US, India, and China. While Washington’s policy changes bring challenges, she is of the view that they also offer Nepal an opportunity to enhance its diplomatic outreach and diversify its economic and security partnerships.

Development cooperation between Nepal and the US dates back to 1951, when the two countries signed their first bilateral aid agreement under the US’s Point Four Program. Early US assistance prioritized building roads, establishing telephone exchanges, eliminating malaria from the Tarai region and promoting agricultural development. By 1959, the US had helped Kathmandu install its first automatic telephone exchange, providing 1,000 lines, and supported the construction of the 87-kilometer Bharatpur-Hetauda road under the Rapti Development Program. Work also began on the Hetauda-Kathmandu ropeway the same year.

In the 1960s, during King Mahendra’s consolidation of the Panchayat system, US aid surged dramatically. President Dwight Eisenhower’s unexpected $15m pledge to King Mahendra in April 1960 marked a turning point in US involvement in Nepal’s development. USAID expanded its programs in agriculture, health, education and industrial development. After King Mahendra dissolved parliament and banned political parties in 1960, US aid was redirected to support the Panchayat system. The US supported construction of administrative structures across Nepal, viewing the Panchayat system as a potential vehicle for mobilizing human resources and fostering economic, social and democratic political development.

Chandra Dev Bhatta, a Kathmandu-based geopolitical expert, says that as traditional Western donors reassess their commitments, the impact on countries like Nepal’s development and service delivery mechanisms could be significant.

“With the withdrawal of USAID and now the MCC, some of Nepal’s vital infrastructure projects may face serious challenges, if not come to a complete standstill,” Bhatta says. “International aid architecture is not only evolving but has also become increasingly politicized. While reduced aid and grants are a concern, Nepal must press forward with infrastructure development and keep the service delivery systems intact.”

In the short term, Bhatta suggests that Nepal should urge donor countries to honor their previous commitments despite new geopolitical realities. In the long term, he says, the importance of recognizing that aid is often driven by the donor’s own interests. “This is the stark reality of international cooperation,” he says. “Global political and economic dynamics demand us to have self-reliant models of economic development, and Nepali certainly will have to work in that direction.”

It is now almost certain that US assistance to Nepal will continue to decline. Support is likely to persist only in areas aligned with the Republican Party’s priorities. So far, there have been no concrete discussions between the two countries regarding this new reality.

Satoru Nagao, a Non-Resident Fellow at the Hudson Institute, says that under the current rules of global free trade, China has been catching up with the US. And for small countries, he adds global trade brings both opportunities and challenges. “While factories may relocate elsewhere, small countries can still attract investment if they maintain competitive production costs.”

Nagao points out that if tariffs dominate the new global trade rules, small countries will need to adapt. Although this shift may allow local industries to survive, there will likely be fewer opportunities for foreign investment. He says since the primary target of current US policy is China, countries that depend heavily on China could suffer under these shifts. He warns that if Nepal increasingly relies on China, it risks becoming “a passenger on a sinking ship.”

The ongoing teachers’ protest has compelled Minister for Education, Science, and Technology, Bidya Bhattarai, to resign. On one hand, she was under mounting pressure to address the demands of teachers; on the other, Prime Minister KP Sharma Oli was reportedly dissatisfied with her performance.

A clear divergence emerged between the interests of the ruling CPN-UML and Bhattarai’s method of handling pressing issues in the education sector. With her background as a university lecturer, Bhattarai was seen as a competent and knowledgeable figure to lead the ministry. Yet, despite her credentials, tensions within the government and on the streets reached a breaking point. For over three weeks, secondary school teachers have been staging protests in central Kathmandu, severely disrupting the education of thousands of students in public schools. These demonstrations have also caused traffic congestion, significantly affecting transportation systems and local businesses.

In response to the leadership vacuum, senior UML leader Raghuji Pant has been nominated as the new Education Minister. According to government sources, fulfilling the teachers’ demands is no easy task. They argue that some grievances can only be addressed once the long-awaited Education Bill is passed by Parliament. However, the unrest is not limited to teachers. Numerous groups and organizations have taken to the streets to voice their own frustrations and demands.

Resident doctors are rallying for fair allowances, local government staff are staging demonstrations, and in recent years, victims of cooperatives and loan sharks have also mobilized. The cumulative pressure from these groups poses a serious challenge for the government. How these compounding issues will be handled remains uncertain, but many fear the situation may escalate beyond control if not addressed promptly.

Within the Nepali Congress (NC), internal efforts are reportedly underway to topple the current government, despite party president Sher Bahadur Deuba's preference for maintaining the coalition. Other senior leaders—such as Purna Bahadur Khadka, Shekhar Koirala, Gagan Kumar Thapa and their allies—are advocating for a renewed alliance with the CPN (Maoist Center). This week, Khadka publicly criticized the coalition’s performance, emphasizing the urgent need to improve the government’s working style.

At the same time, Maoist Chairperson Pushpa Kamal Dahal has made it clear that his priority is to form a coalition with the NC. Political analysts suggest that Dahal is maneuvering to increase his party’s bargaining power with both NC and UML in the context of upcoming electoral alliances. If negotiations with the NC fail, Dahal is expected to revive the idea of a leftist coalition as a strategic alternative.

Amid these political shifts, the government is preparing to unveil new policy programs and the national budget. However, these initiatives could spark further friction between coalition partners NC and UML. Historically, budget and policy disagreements between ruling parties have often become flashpoints that lead to instability or even regime change.

Meanwhile, the recent wave of pro-monarchy protests appears to have lost steam. Last week, the Rastriya Prajatantra Party staged demonstrations in Kathmandu and several locations outside the valley. However, the low turnout has prompted the party to reconsider its strategy before organizing further events. Following the arrest of Durga Prasai, his supporters have remained largely absent from the streets. Dozens of them have been detained for alleged involvement in the arson and vandalism that occurred on March 28.

After nearly a month of house arrest, Nava Raj Subedi has returned to lead the pro-monarchy movement, but the campaign seems to have lost momentum. Former king Gyanendra Shah has reportedly urged calm, expressing concern that further violence could trigger government retaliation against him. According to sources, Gyanendra has instructed his followers to keep protests peaceful. However, the extent of coordination between him and pro-monarchy groups remains murky. As the movement weakens, mainstream political parties and the government have noticeably softened their tone regarding the former monarch.

In other political developments, top leaders from UML, NC, and Maoist Center convened this week to discuss critical matters, including the stalled transitional justice appointments and pending education legislation. Despite the meeting, no substantial progress was made.

Nevertheless, the appointment process for the transitional justice mechanism has resumed. Meanwhile, Prime Minister Oli publicly addressed rumors of an internal challenge to his leadership, allegedly spearheaded by former President Bidya Devi Bhandari. Speaking at a public function, Oli asserted that the UML is unimaginable without him, boldly claiming that he “won’t grow old” for another 20 to 25 years.

In recent weeks, Bhandari has become increasingly vocal about her political ambitions, stating that numerous party leaders are urging her to take the helm. Dissatisfaction with Oli’s leadership has led some senior UML figures to shift their allegiance to Bhandari, who is emerging as a new power center within the party. “Some people are raising concerns about my age and health, but no one should imagine this party without me,” Oli recently declared.

In a move to reassert control and respond to public criticism, Oli has announced the formation of a high-level good governance committee, which he will personally lead. While the initiative is ostensibly aimed at combating corruption and restoring good governance, public skepticism about its efficacy remains high. Governance has been one of the biggest casualties of the NC-UML coalition, with many key decisions delayed due to inter-party disagreements. One such example is the government’s failure to appoint a new governor for the Nepal Rastra Bank, a deadlock rooted in internal political differences.

Meanwhile, the Rastriya Swatantra Party (RSP) continues to face criticism for lacking a clear ideological direction. This criticism intensified when the party opted to remain silent during the recent wave of pro-monarchy protests. However, this week, senior RSP leader Swarnim Wagle outlined the party’s position on several national issues during a public event outside the valley. He stated that the RSP supports scrapping the current federal structure, arguing that it imposes an unsustainable financial burden on the state. He also proposed a downsizing of both federal and provincial legislatures—positions that clearly suggest the party is not fully aligned with the principles enshrined in the 2015 constitution.

In a related development, two Madhes-based parties—the Janamat Party and the Nagarik Unmukti Party—are preparing for a merger. CK Raut is expected to take the helm of the unified political force, signaling a new chapter in regional political realignment.

It has been over a week since the World Exposition opened in Osaka, where an estimated 28m visitors are expected over the six-month event. Among the 158 participating countries—including Nepal—nearly all have set up their pavilions. However, Nepal failed to open its pavilion on the inauguration day (April 13) due to construction delays, exposing governance shortcomings.

The delay stems from a dispute between the Nepali government and the contractor. Two years ago, the government selected a private company to construct the pavilion, yet poor coordination and unresolved issues prevented its timely completion.

Jitendra Basnet, spokesperson for the Ministry of Industry, Commerce and Supplies, cited cost overruns, budget shortages and logistical lapses as key reasons for the delay but declined to provide further details. Other officials also refused to comment.

A senior official involved in the project, speaking anonymously, revealed that the conflict arose over payment procedures. Nepal Rastra Bank required contractors to pay a 30 percent tax before transferring funds from Japan, which the contractor refused. Visa complications further stalled progress. “Despite two years of preparation, we couldn’t complete the pavilion—it’s embarrassing,” the official admitted.

Government authorities are now scrambling to resolve the dispute and open the pavilion soon. Durga B Subedi, Nepal’s Ambassador to Japan, said he would assess the situation in Osaka next week before commenting. Meanwhile, it remains unclear whether Nepal will have high-level representation at the expo.

The Nepal Pavilion was intended to showcase the country’s cultural heritage, natural beauty and other attractions. With 119,000 visitors on opening day—and other nations’ pavilions drawing large crowds—the delay could hurt Nepal’s tourism and economic prospects at the event.

Held at Yumeshima (“Dream Island”), a reclaimed industrial site in Osaka Bay, the expo—with the theme “Designing Future Society for Our Lives”—features futuristic exhibits from over 160 countries and organizations across 80 uniquely designed pavilions. This is Osaka’s second expo after the hugely successful 1970 , which set a record with 64m visitors until Shanghai’s 2010 event.