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The 13th World Trade Organization Ministerial Conference (MC13) has concluded, issuing the Abu Dhabi declaration, which sets out a forward-looking reform agenda for the organization. The conference also took a number of decisions, including renewing the commitment to have a fully and well-functioning dispute settlement system by 2024.

The ministerial meeting decided to improve the use of the special and differential treatment provisions for developing and least developed countries (LDCs). As scores of LDCs are graduating, they are demanding a smooth and sustainable transition. 

“Recalling that, at our 12th session, we recognized the role that certain measures in the WTO can play to facilitate smooth and sustainable transition for members after their graduation from the LDC category, we welcome the decision adopted by the General Council in 2023,” the declaration states.

The general council decided to encourage those members that graduate or remove countries from unilateral tariff or duty-free and quote-free preferences programs reserved for LDCs based on their being graduated from the UN list of LDCS. It also decided to provide a smooth and sustainable transition period for withdrawal of such preferences after the entry into force of a decision of the UN to graduate a country from the LDC category.

The member-states adopted the Abu Dhabi Ministerial Declaration, where they expressed commitment to preserving and strengthening the ability of the multilateral trading system, with the WTO at its core, to respond to current trade challenges. The  declaration underlines the centrality of the development dimension in the work of the WTO, recognizing the role that the multilateral trading system can play in contributing toward the achievement of the UN 2030 Agenda and its Sustainable Development Goals. It also recognized the contribution of women’s economic empowerment and women’s participation in trade to economic growth and sustainable development.

The member-states recognized the role and importance of services to the global economy, as it generates more than two-thirds of global economic output and accounts for over half of all jobs. They encouraged the relevant WTO bodies to continue their work to review and build on all the lessons learned during the Covid-19 pandemic and to build effective solutions in case of future pandemics in an expeditious manner. 

Nepal is graduating from LDC in 2026. But there are fears that the country’s economy will suffer if it loses the preferential treatment from the international community post-graduation. While major countries have pledged to support the countries who face graduation problems, Nepal still needs to come up with a strategic roadmap. 

Speaking with ApEx, Li Chenggang, permanent representative to WTO, said: “With an increasing number of LDCs’ meeting the criteria of graduation and 19 out of 35 WTO LDC member of on their path toward graduation, it is imperative than ever to explore pathways as the WTO to facilitate the smooth transition.”

He further said China supports the smooth transition of graduated LDCs supporting measures such as extending preferential trade arrangements for market access. “This means, after LDCs graduation, China still provides zero tariff treatment for 98 percent tariff lines of products originating from LDCs for another three years,” he added.

For quite some time now, Prime Minister Pushpa Kamal Dahal has been vocal about his intentions to revamp his Cabinet, aiming to oust underperforming ministers and those embroiled in controversies. Specifically, Dahal seeks to remove Health Minister Mohan Basnet, who has been mired in various controversies, and Minister of Physical Infrastructure and Transport Prakash Jwala, whose negligence resulted in the deaths of two youths in Balkumari. However, coalition leaders Sher Bahadur Deuba of the Nepali Congress and Madhav Kumar Nepal of the CPN (Unified Socialist)have exerted pressure on Dahal to refrain from making such decisions. The main opposition, CPN-UML, is also urging Dahal to dismiss ministers entangled in controversies.

The prime minister is apparently dissatisfied with the performances of Finance Minister Prakash Sharan Mahat and Foreign Minister NP Saud, both from the Deuba camp of the Nepali Congress. But Deuba is reluctant to recall them due to the intra-party dynamics. The Dahal-led government is facing widespread criticism for its failure to improve the country’s economy, create jobs, curb youth migration abroad, and enhance service delivery. Acknowledging these shortcomings, Dahal repeatedly asserts that he will bring about changes through Cabinet reshuffling, but faces resistance from his coalition partners.

Another point of contention between the primary coalition partners, Congress and Dahal’s CPN (Maoist Center), is their respective positions on the candidate for the chairman of the National Assembly (NA). With the current chairman, who is from the main opposition UML, retiring this month, both parties are vying for the position. The NC has already communicated to the Maoist party that its senior leader Krishna Prasad Sitaula, who won the NA election last month, should be elected as the new chair, a position that Prime Minister Dahal had initially supported. But of late, Dahal’s party has taken a hard stance on the issue due to a couple of reasons. Firstly, the NC voters did not vote for the Maoist candidates in the Koshi provinces during the NA election, and secondly, the recently concluded NC’s Mahasamiti meeting portrayed Maoist insurgency in a negative light.

Prime Minister Dahal is under pressure from his own party not to relinquish the claim for the NA chair. Although the Maoist party has decided to field its own candidate, leaders say Dahal will most likely support Sitaula for the NA chair. 

Maoist leaders fear that the party will be left without any representatives in the Constitutional Council if the NA leadership is handed over to the NC.

After the NA election last month, the Maoists, which is the third-largest party in the House of Representatives, emerged as the largest party in the National Assembly. In the recently concluded party’s Standing Committee, there were strong voices advocating for the party to claim the chairmanship of the NA, which led to the formal decision on the same issue. 

The Maoist decision may also have been partly influenced by the NC’s Mahasamiti meeting, where the majority of representatives opposed the electoral alliance with the Maoist party, though the outcomes of the meeting did not create any obstacles for the party to forge an electoral alliance in the next local and national elections.

A senior Maoist leader says, “We should not expect that one alliance lasts forever; there could be changes.”

Though the current coalition may not be in any significant danger, the gap between the two coalition partners is widening by the day. It appears that both Deuba and Dahal are committed to the continuation of the current coalition, but there is growing unease within both NC and Maoist parties. Both Dahal and Deuba are extra cautious that the current differences between the two parties should not create problems in the coalition.

They sit together even if some minor issues arise to maintain an environment of trust. For instance, when Nepali Congress General Secretary Gagan Thapa took a firm stance in the party’s Mahasamiti meeting to endorse the proposal that the party would not forge a pre-poll alliance, Deuba and his close aide Purna Bahadur Khadka personally assured Dahal that the coalition will remain intact. Inside the NC, senior leader Shekhar Koirala continuously asserts that he is working to change the coalition, while Thapa has taken a middle ground that the party should remain committed to the current coalition but should not forge an electoral alliance in the next general elections. 

Meanwhile, Deuba and leaders close to him argue that the party should take a pragmatic approach because if the party leaves the government, the UML will come to the rescue of the Dahal-led government, ultimately paving the way for the left alliance. And, in case the left alliance is formed again, the party could face an electoral defeat like it did in the 2017 elections.

However, the NC rank and file are not happy with the alliance, as reflected in the party’s Mahasamiti meeting where they stated that the alliance with the Maoists has eroded the party’s ideology and support base. Inside the NC, there are growing voices that the party is suffering due to the non-performance of the NC as a key coalition. 

A NC senior leader says, “On the one hand, our cadres at the local level have not felt the party’s presence in the government, on the other hand, the Dahal-led government is becoming unpopular, but people are pointing fingers at us because Dahal remains in power.”

Similarly, inside the Maoist party, there are growing demands that the alliance with NC should be reviewed as vote transfer has emerged as a big problem. Though Dahal seems committed to continuing with the current coalition, senior leaders inside the party believe that it would be natural to form a left alliance. For now, it seems that both Deuba and Dahal, who have a strong command in the party, would manage the differences, but it is uncertain whether they will be able to do so for a long time.

At the ongoing 13th World Trade Organization (WTO) Ministe- rial Conference, representa tives from the Least Developed Countries(LDC) are demanding an increased role of the global trade body for their smooth and sustainable transition.

Since the 12th conference that took place in Geneva in 2022, there has been some notable progress when it comes to addressing the demands of least developed countries. LDC rep- resentatives expect that the current meeting will deliver something more substantial.

The draft of the Abu Dhabi ministerial declaration that is currently under discussion states: “Recalling that, at our Twelfth session, we recognized the role that certain measures in the WTO can play to facilitate the smooth and sustainable transition for members after their graduation from LDC category.”

In this regard, the General Coun- cil meeting in 2023 took a vital deci- sion which has been welcomed by the draft text of 13 conferences. The decision of General Council states: “To encourage those Members that graduate or remove countries from unilateral tariff or duty-free and quota free (DFQF) preference programmes reserved for least developed countries (LDCs) based on their being graduated from the UN list of LDCs, to provide a smooth and sustainable transition period for withdrawal of such preferences after the entry into force of a decision of the UN General Assembly to graduate a country from the LDC category.”

The draft text of the 13th conference further states that the General Council recognizes the particular vulnerability and special needs of the LDC, and that their interests should be given due priority for them to secure meaningful integration into the multilateral trading system.

Nepal which meets the two out of three criteria is all set to graduate in 2026. Nepal meets the criteria for human assets index and economic vulnerability index, but it is yet to meet the gross national per capita. Officials say Nepal’s graduation preparations are not satisfactory and that its economy could face the risks after the graduation. 

Although Nepal has been continuously asking the international community to continue duty-free and quota-free preferences even after the graduation, there has not been any notable progress to strengthen the trade capacity of the country.

“Many countries which are graduating are coming up with specific proposals to improve in certain areas, and we are providing support to them. But Nepal has not come up with any proposal for us to support,” said an official requesting anonymity.  

In this scenario, Nepal can also request the United Nations to provide additional years to make the necessary preparations. For instance, the deadline could be postponed for 2029 instead of 2026, but Nepal is apparently sticking to the 2026 deadline.

Nepal’s economy suffered from the 2015 earthquake and the Covid-19 pandemic. According to the figure provided by the WTO secretariat, Nepal’s merchandise export averaged $835m during 2011-2019. With the onset of the Covid-19, they decreased from $968m in 2019 to $856 in 2020, below 2011.  Commercial services exports of Nepal almost doubled from $775m in 2011 to $1.5bn in 2019, but decreased to $830m in 2020, mainly due to a collapse of travel services induced by the pandemic.

The LDCs are accorded special treatment by the international community, mainly in areas such as trade and development cooperation, which is broadly known as “international support measures”. Trade is one of the key areas where LDCs enjoy exclusive preferences, both in the context of market access as well as in the implementation of WTO rules and disciplines. 

Graduation from the LDC category will eventually result in the loss of this special treatment, although the degree to which this will impact individual countries graduating from the LDC category differs. Nepal is asking developed countries to continue the preferential facilities even after the graduation, but this is not sufficient. Nepal has to make a comprehensive strategy for LDC graduation. 

Nepal’s trade deficit is widening. Nepal’s top markets are India, China, the EU, the US, the UK, Japan, and Canada. Nepal has bilateral agreements with India and the US regarding duty-free and quota free market access. 

A report prepared by South Asia Watch on Trade, Economics and Environment in 2022 states that about two thirds of Nepal’s exports are absorbed by India, and preferential market access there is built into a bilateral trade treaty and is not tied to LDC status. 

However, the report says, Nepal’s exports will face tariff increases in other major and potential destinations that offer LDC-specific tariff preferences.  

“While the EU, the UK, and Turkey provide a transition period of three years after graduation, Nepal will face new tariff regimes in other preference-granting countries post-graduation, according to the report,” according to the report. 

It further states: “For some products, the next-best tariff regime offers the same tariffs as the LDC-specific tariff regime, while for others the new tariffs will be distinctly higher. We find that exporters, in general, are not aware of the likely tariff changes.” 

The Nepali private sector is worried about the possible increase in tariffs and fear a severe impact given that Nepal's cost of production is already much higher than that of neighboring and other competing countries. For instance, the cost of production in the apparel sector is about 26 percent higher than that of neighboring countries, as per the Garment Association of Nepal. 

Experts suggest that either Nepal should seek the extension of the deadline or make a comprehensive strategy to mitigate the negative effects of the graduation. Under the Agreement on South Asian Free Trade Area (SAFTA), Nepal will face a significant increase in tariffs for its top two current exports—refined soyabean oil and palm oil. It exports these products to India through the SAFTA route, says the SAWTEE report. 

The report suggests that Nepal must use international/multilateral forums to pursue its post-graduation interests, including continuation of the use of LDC-specific provisions for a specific period, particularly regarding the provisions related to preferential market access, use of export subsidies and the flexible implementation of the Agreement on Trade-Related Aspects of Intellectual Property Rights.

Nepal has emphasized the need for continuation of all international support measures after it graduates from LDC status to a developing country in 2026. Addressing the 13th World Trade Organization (WTO) Ministerial Conference in Abu Dhabi, Minister for Industry, Commerce and Supplies Ramesh Rijal said that LDC graduation is the outcome of common efforts, but the challenges that the graduated country might face should be facilitated through a creative resolution over the proposal submitted by LDC group.

“Nepal re-emphasizes the need for continuation of all international support measures, particularly Duty-Free Quota-Free Market Access, Special and Differential Treatments, preferential rules of origin, service waiver, Aid for Trade and Technical Assistance and Capacity Building supports and other important flexibilities in the implementation of multilateral trade agreements and commitments after graduation for a specified period of time,” Rijal said. 

Nepal welcomes the decision taken by WTO General Council on 23 Oct 2023 and urges all Members to support the LDC graduation-related proposal submitted by the LDC Group to facilitate the smooth and sustainable graduation, he said.

In recent years, the multilateral trading system has been undermined by growing protectionism and unilateral trade measures of the trade partners. “The system has been further weakened by ineffective implementation of WTO decisions, including Doha Development Agenda. Therefore, Nepal calls for collective commitment to the multilateral trading system,” Rijal added.

Meanwhile, WTO enshrined new rules facilitating trade in services between more than 70 member states despite initial objections from India and South Africa.

According to AP, the set of rules will streamline authorization requirements and ease procedural hurdles faced by businesses. It will help reduce the costs of global services trade by more than $119bn every year, it added. Its integration into the WTO implies all 164 members have been approved as per the body’s rules, which require full consensus.

“Reaching this outcome...and integrating it into the WTO has not been an easy pass,” EU trade commissioner Valdis Dombrovskis said. “We faced opposition from two WTO members, but a ‘spirit of compromise’ eventually cleared hurdles.” 

WTO chief Ngozi Okonjo-Iweala, meanwhile, thanked “India and South Africa for finding a way forward,” calling services the “future of trade.” Global services exports are valued at more than $6.5trn, representing 23 percent of total world trade, according to the EU.

In March 2019, Nepal and Japan signed a memorandum of cooperation on sending Nepali workers to Japan under the government-to-government modality. Under the deal, specified skilled workers (SSW) from Nepal would get hired in various job sectors of Japan, ranging from nursing care to manufacturing to hospitality.

But the agreement, signed by then officiating labor secretary Ram Prasad Ghimire and former Japanese ambassador Masamichi Saigo, did not make any progress of note. It took more than a year for Japan to announce 60 job openings for caregivers. Thousands of Nepali youths who had taken up Japanese language classes, one of the prerequisites for employment in Japan, were left disappointed. They had paid thousands of rupees to private institutes to learn to read and write Japanese. 

Meanwhile, educational consultancies, the so-called training centers, and foreign job employment agencies (or manpowers as they are called in Nepal) started making claims that they offer the relevant skill and language training to send workers to Japan. It was the start of the government-to-government (G2G) labor agreement getting hijacked by unscrupulous manpowers.

Now it appears that their plan has come to fruition. The Ministry of Labor, Employment and Social Security recently came up with a new work procedure allowing manpowers to send workers to Japan. The document states that the work procedure has been introduced to make the process of sending workers to Japan more transparent, fast, and systematic. The government has essentially thrown out the G2G agreement signed with Japan and brought in privately-run manpowers. 

The government’s move also goes against the notion that G2G labor agreements could be far more transparent, safe and cost-effective for laborers. After all, Nepal has adopted South Korea’s Employment Permit System as part of the G2G deal to send Nepali workers to South Korea. 

Remittance sent by foreign job holders is a key driver of Nepal’s economy. So naturally, there are hundreds manpowers in the country. The largest share of their business comes from supplying unskilled labor forces primarily to Malaysia and the six states of the Gulf Cooperation Council, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Exploitation of Nepali workers at the hands of manpowers at home and employers in these labor destinations is no secret. It is also not unheard of that many foreign employment agencies enjoy political protection, allowing them to operate in such a manner that they make the maximum profit without a care for the safety, welfare, and rights of the workers.    

Under the new work procedure, Nepali organizations or companies which meet the standards of the SSW system and have taken permission from the ministry will be eligible to send Nepali workers to Japan. Such organizations can facilitate all the process, from conducting language and skill tests examination to sending workers to Japan.  

The document also states that the companies willing to send Nepali workers to Japan should have their training center and there should be at least two language instructors who have official certificates related to Japanese language. They  should also forge an agreement with the Registered Support Organization (RSP) of Japan which is responsible for handling specified skilled workers from foreign countries. 

RSP cannot take any fees from Nepali workers and companies. The companies  providing employment in Japan can come to Nepal to conduct the language and other tests, but there should be a prior agreement with concerned agencies.

The companies that want to take Nepali workers must issue a vacancy issuing all the details such as position, numbers and the working areas. Similarly, it should be clearly stated about the details of work, security and possible health risks it entails. The issues such as provision of social security, allowances, salary, recruitment process among others should be made transparent. 

However, there are several concerns and gaps regarding the government’s decision to hand over the responsibility of sending workers to Japan. The major one is that of transparency.  According to the ministry, those organizations who take the responsibility of sending workers should maintain a transparent way of selecting workers on merit-basis and that the ministry will oversee all the process.

This leaves a lot of wiggle room for manpowers to dictate their conduct. 

Nepali workers are going to Japan under various provisions. Even those who go under the student visas work part-time jobs there. According to the Kyodo news agency, there has been a dramatic increase in the number of people from Nepal working in Japan over the past decade, owing in part to labor shortages in the service industry caused by Japan’s aging society. 

Many in the Nepali labor force, which had surged 13-fold to 120,000 nationwide in 2022, work as rafting guides, hotel employees, airport staff and other behind-the scenes workers in bustling holiday destinations. 

According to Japan’s Ministry of Health, Labor and Welfare, Nepalis were set to become the fifth largest group of foreign workers in 2022.

The 13th World Trade Organization (WTO) Ministerial Conference kicked off in Abu Dhabi, UAE, with a focus on the smooth transition for Least Developed Countries (LDCs) as they graduate. The LDCs, represented by the WTO’s LDG Group, are voicing their shared concerns, with 15 out of 45 countries currently navigating the graduation process.

Leading the Nepali delegation is Minister for Industry, Commerce, and Supplies Ramesh Rijal. 

During the four-day conference, WTO members will be seeking to secure “deliverables” during their four-day meeting in areas such as fisheries subsidies, agriculture, WTO reform, development, e-commerce, services and investment facilitation. Also on the ministers’ agenda will be how to make progress in their discussions on gender and the environment.

In his welcoming speech to the Conference,  Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade of the United Arab Emirates (UAE) and MC13 Chair, stressed the historically important role the WTO has played to provide “stability, transparency and predictability for international trade,” contributing to “raising living standards, improving employment opportunities and enabling the expansion of trade in goods and services” around the world.

WTO Director-General Ngozi Okonjo-Iweala urged members to show leadership, flexibility and compromise to deliver important outcomes at MC13 for people and the planet. “Success is changing the tone about the WTO, both outside and within it. We will always have our naysayers and detractors but there is no doubt that members have shown that we can deliver when members roll up their sleeves and muster the requisite political will. During the last several weeks, the atmosphere in our preparatory discussions in Geneva has been more constructive and conducive than it was in the run-up to MC12,” she said.

In Oct 2023, WTO members reached a significant milestone with the adoption of a General Council decision on the market access element of the LDC’s proposal. This decision encourages preference-granting members to provide a smooth and sustainable period for the withdrawal of duty-free market access opportunities once countries graduate from LDC status.

Nepal qualified to graduate from the LDC category in 2021 and it is set to graduate in 2026. But the country still faces numerous challenges. The issue of LDC graduation remains a key foreign policy agenda item, with Nepal urging larger countries to continue providing trade privileges for a few years post-graduation. In turn, these larger countries are seeking Nepal’s LDC graduation strategy as soon as possible. 

While graduation is a significant development achievement, it also presents challenges, particularly the loss of preferential access to other countries’ markets, which could hinder integration into the global economy. Currently, LDCs receive special treatment from the international community, particularly in trade and development cooperation, known as international support measures.

That is why, according to the WTO secretariat, LDC Group has been discussing with other WTO members the issue of special and differential treatment in the sub-committee on LDC, with the aim of potentially reaching consensus at the ongoing conference. For an LDC like Nepal, special measures are necessary to prevent any loss of economic growth and maintain a current space of development.

Over the past four years, the WTO’s LDC Group has been discussing a smooth transition mechanism to extend LDC-specific preferences and provisions in WTO agreements after graduation. Discussions are also underway in the WTO sub-committee on LDCs’ other requests relating to special and differential treatments.

A WTO member graduates from LDC status when it meets certain socio-economic thresholds set by the United Nations, with the decision made by UN members based on the recommendation of the Committee for Development Policy. Out of the 15 LDCs on the path towards graduation, 10  (Angola, Bangladesh, Cambodia, Djibouti, Lao PDR, Myanmar, Nepal, Senegal, Solomon Islands and Zambia) are WTO members. Three (Comoros, Sao Tomé and Principe, and Timor-Leste) are in the process of negotiating their WTO accession. Ministers formally approved the WTO membership terms of Comoros and Timor- Leste at a special ceremony held at the 13th WTO ministerial conference.The other two graduating LDCs are Kiribati and Tuvalu.

Meanwhile, ministers representing 123 WTO members issued a joint declaration marking the finalization of the Investment Facilitation for Development (IFD), which is expected to contribute to LDC graduation. Vice-Minister of Trade of Chile Claudia Sanhueza highlighted that the agreement demonstrates the WTO’s ability to deliver for global trade and development and address current challenges.  “Once implemented, the IFD agreement is expected to foster significant economic growth in developing and LDC members and extend its benefits to non-participants,” she said. 

LDC countries like Nepal are in dire need of more sustainable investment flows.

Similarly, small economies integration into the international trading system is another major issue for the LDC countries. The draft decision calls for WTO members to address the issue of integrating small economies into the multilateral trading system by looking into issues such as the impact of non-tariff measures on trade costs, the link between trade policies and climate change adaptation, global supply chains, e-commerce and digital ecosystem. The decision on small economies was adopted by the trade ministers at the12th ministerial conference held in Geneva in 2022. 

The WTO meeting which has 166 members is taking place at a time when geopolitical tension is rising, ongoing trade war between US and China, Russia’s invasion of Ukraine and growing trade restrictions across the globe. According to Reuters, the WTO faces a large number of difficult issues  among its 166 members, including reforming its hobbled dispute settlement system, cutting fishing subsidies, resolving disagreements over agriculture subsidies and deciding whether to extend a 25-year-old ban on duties on electronic commerce data transmissions.

Key agendas:

Accessions

Agriculture

Development

E- commerce

Environment

Fisheries subsidies

Investment Facilitation

Ip/ Tripes

Wto reform

LDC graduation

The CPN-UML has concluded the seventh meeting of its central committee with 22-point declarations and programs of action on a host of intra-party and national political issues. 

The meeting has decided to focus on party building rather than making efforts to change the government. The party has recognized several intra-party issues that need to be addressed to keep the party united. 

Soon after the 2022 general elections, the UML launched ‘Mission Grassroots’ and ‘Sankalpa Yatra’ (Resolution March) aimed at enhancing the party’s strength. But according to party leaders, the two programs did not bring the desired results. 

The conclusions, drawn by nine groups of the UML central committee, were presented at the meeting. Kashi Nath Adhikari presented the suggestions on behalf of the party’s standing committee, Ghanashyam Khatiwada from Koshi, Chandreshwar Mandal from Madhes, Kailash Dhungel from Bagmati, Navaraj Sharma from Gandaki, Radhakrishna Kandel from Lumbini, Gulanjung Shah from Karnali, Krishna Prasad Jaisi from Sudurpashchim, and Pema Lama from the department, valley, liaison, and diaspora group.

In their suggestions, the groups said that the general public is disaffected with the current government for its governance deficiencies, economic failures, corruption, insecurity, and inflation. On the party front, they emphasized the need to promote discipline, financial transparency, and moral conduct.

Addressing the concluding ceremony of the meeting, UML Chairman KP Sharma Oli urged the central committee members to put in all efforts to ensure a UML-led majority government after the 2027 general elections.

General Secretary Shankar Pokharel responded to the questions raised by party leaders. He said that the UML was executing the annual action plan, renewing party membership, ensuring the systematic operation of the party school, and collaborating with the party’s people’s representatives for their effective performance.

The UML central committee has concluded that due to unsuited individuals governing the state, the republic system was facing various challenges, with national interests taking a back seat and foreign relations becoming immature and imbalanced.

The party has resolved to utilize all its strength to bolster the democratic republic system, foster the idea of prosperous Nepal, fulfill the national aspirations of contented Nepalis, safeguard national interests and dignity, and ensure a bright future for the country.

Stating that the government has failed to expedite capital spending and that tax revenue is falling short of covering government expenses, and delays in releasing payments to contractors for completed projects have hampered the implementation of development initiatives, the UML has pledged to take meaningful action to address these issues. 

The central committee has also called for the resignation implicated in various scandals, including the deaths of two youths in the Balkumari area of Lalitpur on 29 Dec 2023.  

Highlighting the plight of loan shark victims marched all the way to Kathmandu to demand for justice, the UML has demanded that the government take strong action against greedy usurers and deliver justice to the victims. The party has also expressed sympathy towards the protests of the victims of cooperatives and microcredit institutions, and called on the government to safeguard the deposits of ordinary people. 

Stating that dairy farmers, who faced significant losses due to a lumpy skin outbreak, have been unable to receive payments totaling more than Rs 6bn from dairy producers, the UML has urged the government to demonstrate a serious commitment to supporting farmers. According to the party, the government has reduced subsidies based on production and ceased subsidizing farm insurance premiums, promoting the import of powdered milk, instead of boosting domestic production. The party has called on the government to address long-term land issues, implement a system for distributing identification cards after identifying and categorizing farmers, and allocate grants and subsidies to incentivize farming. 

The UML has urged the government to take needful measures to ensure a stable market for farm products, eradicate middlemen, and safeguard citizens from the impacts of climate change. It has also urged the government to control inflation and ensure the smooth supply of daily necessities.

The UML central committee has demanded that the government promptly release the grant funds for quake-affected families to construct temporary homes, and immediately bring plans for their reconstruction and rehabilitation without delay. Thirty-eight survivors of the Jajarkot earthquake have died due to the cold winter because of government indifference, the party said.

The UML has urged the government to devise concrete strategies to stop political meddling in the higher education sector. The party has also demanded action against the perpetrators who attacked 16 members of its student wing at Lamjung Agriculture and Livestock Campus.

The UML has criticized the diplomatic failure on the part of the government to secure the release of Bipin Joshi, who has been held hostage by Hamas since the attack on Israel by Hamas in October last year. The party has called for a lasting peace in the Middle East and advocated for the establishment of an independent Palestinian state as proposed by the United Nations. 

The party has also called out the government’s ineffectiveness to bring back the Nepali youths working for the Russian army. 

Regarding the power trade agreement with India, the UML has expressed concerns that certain provisions go against the national interest. Instead of resolving issues related to long-pending projects like Pancheshwar and Upper Karnali, the UML said that the government awarded key projects such as West Seti, Seti-6, and Phukot Karnali to Indian developers without the competitive bidding process. The UML has demanded that the government make public all agreements, understandings, and arrangements made for energy production and trade to safeguard Nepal’s national interests in natural resources and to ensure competitive arrangements in energy production and distribution.

The party has also expressed its concerns regarding the activities of some groups to disrupt social harmony by stoking social and religious tensions. The UML has claimed that some individuals within the government are involved in such activities. Thep party has called upon people of all languages, castes, religions, and cultures to remain vigilant against any actions that undermine social harmony, to identify those responsible for such acts, and to contribute to strengthening social harmony and national unity.

The UML has also raised objections to the release of individuals involved in the death of its activist Chetan Aidy, who was killed by Nepali Congress workers during the 2022 general elections, under the political pressure and influence. Such incidents undermine the rule of law, erode public confidence in the judiciary, and perpetuate impunity, the party has said.

Secularism is an essential characteristic of a democratic society. When Nepal adopted a new constitution in 2015, secularism was one of its defining features. Through the constitution, the nation that once identified as the only Hindu kingdom took a bold step to do away with both monarchy and Hindu statehood. But this wasn’t without resistance. Hindu organizations and pro-royalist parties such as the Rastriya Prajatantra Party were among the fiercest opponents of republicanism and secularism. But the major political parties—Nepali Congress, CPN-UML, and CPN (Maoist Center)—prevailed on the decision. 

Nearly a decade after Nepal promulgated the new constitution, the topic of Hindu state has once again seeped into public and political discourse. 

Of late, even major political parties—not just the pro-royalist RPP—seem to be entertaining the idea of reinstating the Hindu state. The Nepali Congress, considered the flagbearer of democratic ideals, is one of them. Voices in favor of the Hindu state are gaining ground inside the party, with an increasing number of central leaders supporting the idea of reinstating Hindu statehood. The NC is currently holding the meeting of its Mahasamiti, the party’s highest decision making body, and although religion or secularism is not on the official agenda, it has figured out rather prominently on the margins of the meeting.  

The Hindu state restoration campaign led by Central Working Committee (CWC) leader Shankar Bhandari is getting increasing support from the other CWC leaders. It is said that more than three dozen members are in favor of restoring the Hindu state. On Tuesday, party’s senior leaders Shanshank Koirala and Tara Nath Ranabhat signed the petition in support of the Hindu statehood campaign. Out of 169 CWC members, 33 have signed in favor of the Hindu state. A considerable number of non-CWC members are also said to be in support of the Hindu state. 

In the previous Mahasamiti meeting held in 2018, around 700 out of 1500 Mahasamiti members had put their signatures in favor of the Hindu state. The number of Mahasamiti members in favor of restoring the Hindu state is said to have reached at least 800. This clearly shows that the NC leadership is under pressure to review its position on secularism, which is enshrined in the 2015 constitution. 

Just a few days back, Nepali Congress President Sher Bahadur Deuba himself said that the party could consider reviewing its position on secularism.  

While the Hindu statehood has always been one of the key agendas of royalist parties like the RPP, the issue gained traction among the major political parties particularly after the rise of Narendra Modi’s Bharatiya Janata Party (BJP) in India. It is in the interest of the BJP, which thrives on Hindutva politics, to see Nepal as a Hindu nation. The BJP-affiliated religious organizations such as the Rashtriya Swayamsevak Sangh is one of the chief proponents of Hindu statehood in Nepal.  

Observers say the influence of BJP is international; it’s not just limited within the borders of India. The UK, home to a large Hindu Indian diaspora, is a case in point. Elements of extreme Hindutva politics, which believes in Hindu hegemony, have been reported in various parts of Britain in recent years.

In Nepal, where more than 80 percent of the population identify as Hindus, it is not hard to imagine how and why secularism became a hot-button topic. 

When the large majority of the population is Hindu, it doesn’t take any stretch of imagination to see why the major political parties are jumping on the Hindu statehood bandwagon. Political analysts say though Nepal’s political parties may not agree with Hindutva politics, by restoring the Hindu state—or by at least toying with the idea—they are trying to appeal to the voters. Some even contend that secularism was the agenda carried by the Maoist party that saw the Hindu statehood and monarchy with the same lens.  

NC leader Lokesh Dhakal says that the party should take the position of scrapping secularism and stand in favor of the Hindu state as around 90 percent people support the Hindu state. 

Other senior NC leaders who back the Hindu state are the party’s Gandaki province chief Sukraraj Sharma, Bagmati chief Indra Bahadur Baniya, former minister Dilendra Prasad Badu, and CWC members Pushpa Bhushal and Devenedra Raj Kandel. 

Pro-Hindu forces are already intensifying their activities across the country to restore the Hindu state and monarchy. But the major parties are against reinstating the monarchy. 

In fact, the document presented by the NC Vice-president, Purna Bahadur Khadka, at the ongoing Mahasamiti meeting has strongly criticized the efforts to revive monarchy, dubbing it meaningless. The document does not make a mention about Hindu state restoration, although the activities and murmurs within the party suggest volumes.