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Compared to other South Asian countries, Nepal’s electoral process is considerably free and fair. However, there are many loopholes where the country needs to make urgent improvements to strengthen democracy.  

The Election Commission (EC) has come up with a draft of new law which proposes sweeping changes in the country’s election law to create a more inclusive and accountable electoral process. The draft law, prepared after comprehensive consultations with political parties, is currently being studied by the Ministry of Home Affairs. 

The changes proposed in the election laws were made based on various factors, including the orders from the Supreme Court, practices followed in other democratic countries, and lessons learned from Nepal’s own electoral history.

Constitutional expert Chandra Kanta Gyawali says the proposed law aims to address numerous issues related to free and fair elections, such as allowing voting rights to Nepali citizens living abroad, imposing a spending ceiling on candidates and taking measures to minimize the chances of vote-rigging.  The law covers all types of election, from presidential to local level, and if endorsed, will further improve and democratize the election process.  

Key provisions 

One of the proposed changes is the implementation of an online-based voter registration system. This system will modernize the way citizens register to vote, making it easier and more efficient for everyone to participate in the democratic process, say EC officials.

To ensure that Nepalis living abroad too have a say in the nation's governance, the EC has proposed including them on the voter list and allowing them to cast their votes under the Proportional Representation (PR) system. 

The election governing body has also proposed a provision to prohibit candidates who have lost in federal, provincial, or local elections from running in other elections, except in the case of their own constituencies or local units. This measure is aimed at preventing candidates from hopping from one constituency to another.

To ensure a diverse representation of voices, the EC has proposed restricting candidates, who had been elected twice under the PR system, from running again through the same route. To ensure women representation, the EC has proposed making at least 33 percent women candidates mandatory under the first-past-the-post (FPTP) voting system. 

The EC plans to boost women’s participation even further in local units. To this end, the election body has proposed a provision that requires parties to field women in the posts of either mayor/chairperson or deputy mayor/vice chairpersons in local units. If parties are filing candidacy in one of these two posts, it has to be women. The EC has also proposed that 33 percent of the candidates for the post of ward chairpersons in local units has to be women. 

Another key proposition made by the EC in the election law is  the ‘None of the Above’ (NOTA) option on the ballot paper. This option would give voters the chance to express their dissatisfaction if they feel that none of the candidates are suitable to represent them. 

In 2014, the Supreme Court had directed the government to allow voters to cast negative votes by including NOTA option on the ballot paper. But the directive was never implemented at the consensus of major political parties.  Another crucial proposal to reform the country’s election process proposed is fixing the election dates and campaigning period to ensure a more structured and organized electoral process. 

Similarly, the poll body has recommended setting the candidate eligibility criteria directly in the law itself. This proposal aims to establish clear standards for individuals aspiring to run for public office. The EC has also proposed prohibiting candidates from contesting elections under a different party's banner before formally resigning from their current party. This provision intends to discourage the practice of using other political parties' election symbols for personal gain.

To expedite the resolution of disputes regarding the eligibility of elected candidates, the EC has suggested that the concerned courts must render a final decision within six months from the day the case is filed. Furthermore, the EC has proposed a provision mandating candidates to declare their assets held in their name or in the name of their family members during the nomination process. 

Recognizing the importance of diverse representation, the EC has recommended providing a 50 percent discount on the election deposit amount for candidates belonging to Dalit, women, underprivileged, sexual and gender minorities, and people with disabilities. 

Likewise, the EC has also suggested introducing advance voting under the PR system for specific groups, such as government staffers assigned on poll duty, security personnel, election observers, and individuals preparing for foreign visits.  The EC has said that these changes would be incorporated into the ‘Bill to Amend and Unify Existing Election Laws’ and forwarded to the Cabinet through the Ministry of Home Affairs.

EC hopeful of parliamentary endorsement 

Chief Election Commissioner Dinesh Kumar Thapaliya said the commission is positive that the lawmakers will endorse the bill aimed at improving the country’s electoral system. He added that in consultations held with the chief whips of all political parties, the EC officials were assured that the proposed law will get parliamentary endorsement.  But Ila Sharma, former EC commissioner, said that there was no guarantee that Parliament would accept all the provisions suggested by the EC. As electoral reform is an ongoing process, all issues may not be incorporated at once, she added. Sharma suggested that all sections of society should exert pressure on the political parties and the government to reform the electoral process.

Key suggestions

• NOTA ballot paper 
• Ensuring diverse representation 
• Declaration of assets by candidates 
• 33 representation of women at all levels 
• Voting rights for Nepali living abroad 
• Online-based voter registration 
• Fixing the date of election by EC 

After the Central Working Committee meeting of Nepali Congress, it appears that the Pushpa Kamal Dahal-led government has become even more stronger. The NC's rival faction led by Gagan Kumar Thapa has pledged to keep the current coalition intact, a shift from his earlier position where he said that the coalition could break if the government fails to meet people’s expectations.

The CWC meeting of Congress party has also taken ownership of the decision to form an alliance with Dahal’s CPN (Maoist Center), but made no pledge to renew electoral alliance with the Maoists in the next general elections.

“Our experienced leaders demonstrated their political skills carefully, bringing Nepali politics back to normalcy, even in an adverse political situation,” the NC decision says. The party adds that the move to forge an alliance with the Maoists enhanced the NC’s political reputation as well as boosted confidence of the parties involved in the coalition.  

Congress has called its ruling partnership with the Maoists and other fringe parties as “an alliance formed for a specific purpose in a specific situation.” It has called the current alliance the very foundation from which Ram Chandra Poudel, a senior NC politician, was elected the President of Nepal. 

The decisions that came out from the CWC meeting of NC, the largest party in parliament, suggest that the Dahal government has no threat from its primary coalition partner. Another coalition partner, CPN (Unified Socialist), despite showing some dissatisfaction over the budget, is also firm on its position to keep this government alive until next general elections.

This also puts an end to all the theories and conjectures regarding government change born out of several rounds of talks that the Thapa-led faction of the NC held with the main opposition, CPN-UML. 

The Thapa camp was exploring the possibility of forging an alliance with the UML, in case things did not go quite as well with the Maoists. But NC President Sher Bahadur Deuba was opposed to this idea. 

“Thapa influence in the party is very weak and Deuba was never in favor of aligning with the UML,” says political analyst Puranjan Acharya.

Amid all these developments, it is the NC that seems to be in trouble. The CWC gathering showed that the factional rift in the party is ever more widening, with general secretary duo, Thapa and Bishwa Prakash Sharma, still insistent on changing the parliamentary party leader. In other words, Thapa and Sharma are strongly opposed to the idea of Deuba becoming  prime minister for the record sixth time.   

As per the power-sharing agreement, Prime Minister Dahal will hand over the government reins to Madhav Kumar Nepal of Unified Socialist, who will in turn cede the premiership to Deuba.

It is highly unlikely that Thapa and Sharma will succeed in stopping Deuba from getting elected as the parliamentary party leader again, as the latter simply hold too much sway in the party. 

But for Prime Minister Dahal, the friction within the Congress party is enough to make him suspicious. He fears that a conspiracy is afoot to upend the current coalition. 

“Efforts are underway to create friction inside the ruling alliance as the government is fighting corruption and maintaining good governance,” Dahal said at a public function on Sunday. A few days back, Deuba and Nepal had made similar statements. It just goes to show that the parties in the ruling alliance are plagued by uncertainty regarding their unity. Deep down, the UML could somehow scupper their coalition. 

But the UML leaders say this fear is unfounded. They say the NC leadership is not ready to enter a power-sharing deal with the UML.

In a recent interview with ApEx, UML Chairman KP Sharma Oli had said that the NC is not thinking politically by refusing to consider a power-sharing agreement outside the Maoists party.  

According to Oli, the UML was not in a rush to ascend to power, though the party was in favor of forming the NC-UML government to ensure government stability. 

A senior UML leader says Deuba even refused the party’s offer of premiership.

“He is reluctant to talk with us. We think he is under external pressure to not join hands with the UML.” 

If the current ruling alliance survives, the UML is sure to remain out of power till the next elections.
Earlier, it was expected that the Dahal government’s decision to investigate and prosecute the suspects of the fake Bhutanese refugee scandal and high level corruption cases could create friction between the Maoists and the NC. Several NC and UML politicians and lawmakers, including Bal Krishna Khand and Top Bahadur Rayamajhi, were arrested in connection to the Bhutanese refugee scam. In the wake of the infamous case, several NC and UML leaders had denounced the government’s move as “selective prosecution” and “vindictive politics” launched by Prime Minister Dahal.  

UML Chairman Oli had questioned the intent of Prime Minister Dahal and called on his government to display its impartiality by opening an investigation into the alleged corruption that took place during the management of Maoists cantonments after the 2006 peace agreement. 

For many political pundits and observers, the arrests of NC and UML politicians created an environment for the two parties to come closer and take out the Maoist party from power. Things didn't pan out that way.  Political analyst Acharya says the opening of high level corruption files means more politicians from all major parties will be under scrutiny.

“The investigations into Lalita Niwas land grab case and fake Bhutanese refugee scandal have already created an unease inside all major parties,” he says. “In this scenario, there is no immediate threat to the ruling coalition.” 

External factors, if not determinant, also play a vital role in the change of government. So far, according to a ruling party leader, India is in favor of the continuation of the current coalition led by Dahal. 

“So long as Dahal enjoys the support and goodwill of India and Western powers, he has little to fear,” says the leader who spoke on condition of anonymity.

Prime Minister Dahal is set to visit China in September, and some observers say the trip will likely determine the fate of the current coalition. Ahead of Dahal’s China trip, according to multiple sources, some UML leaders have started talks with the Maoist side for the revival of the left alliance. In that case, it is the NC that needs to be worried.

But Lokraj Baral, professor of political science and former ambassador of Nepal to India, says the reason why the talks about government change is finding traction has also to do with the political history of Nepal. 

No government since the past seven decades has completed its full term. “In fact, we have recently seen that even the government with two-thirds majority cannot complete a full term. So naturally, politicians, people and analysts think that this government will not last long,” he says.

Every year, the US State Department comes up with its annual reports on different thematic issues of the countries with which it has diplomatic relations. Such annual reports provide insights into how the US views other countries. 

In this article, we present the major highlights of the key US reports such as 2023 Investment Climate Statements, Trafficking in Person’s Report, International Religious Freedom Reports and Country Reports on Human Rights Practices.

This week, the US State Department published its Investment Climate Statements. According to the report, hydropower, agriculture, tourism, ICT sector and infrastructure have significant commercial potential for investors. Nepal has an estimated 40,000 megawatts of commercially-viable hydropower electricity generation potential, which could become a major source of income through electricity exports, the report says.

The report recognizes that Nepal has established some investment-friendly laws and regulations in recent years, but significant barriers to investment remain. One of them is corruption which is impeding the investment climate in Nepal. The report states that political uncertainty is a continuing challenge for foreign as well as domestic investors.

Nepal’s ruling parties have spent much of their energy over the last years on internal political power struggles instead of governance, the report says.

The report further states that there is a lack of understanding of international business standards and practices among the political and bureaucratic class, and a legal and regulatory regime that is not quite aligned with international practices also impede, hinder and frustrate foreign investors. 

The Investment Climate Statements also raises questions about the role of trade unions. “Trade unions, each typically affiliated with parties or even factions within a political party, and unpredictable general strikes can create business risks, although this problem, once common, has diminished in recent years.”

The US report also questions the role of the Commission for Investigation of Abuse of Authority (CIAA), the national anti-corruption body. It says: “The 2015 constitution empowers the CIAA to conduct investigation of any abuse of authority committed through corruption by any persons holding public office. In practice, according to the report, the CIAA arrests and investigations tend to focus on lower-level government bureaucrats.”

According to the 2022 Corruption Perception Index released by Transparency International (TI), Nepal ranked 110th among 180 countries, placing it in the range of “highly corrupt” countries. In Jan 2018, local media reported that the CIAA is drafting a bill to replace the Prevention of Corruption Act, with the goal of making the new law compatible with the UN Convention against Corruption that Nepal signed in 2011. But the private sector is opposing some of the provisions of the draft. Nepal is not a member of the OECD Anti-Bribery Convention.

While anti-corruption laws extend to family members of officials and to political parties, the report says, there are no laws and regulations that are specifically designed to counter conflict-of-interest in awarding contracts of government procurements.  

A few months back, the US came up with its International Religious Freedom Report which raised issues that Christian groups continued to report difficulties operating as non-governmental organizations and multiple religiously affiliated organizations reported increased challenges renewing or registering their organizations. Christian groups said they continued to face difficulties buying or using land for burials, especially within the Kathmandu Valley, the report mentions.

It also speaks about the growing influence of India’s Bharatiya Janata Party in Nepal. The report cited Nepali civil society leaders as saying that the influence from India’s ruling party, the Hindu nationalist BJP, and other Hindu groups in India continue to pressure politicians in Nepal, particularly, the pro-Hindu, Rastriya Prajatantra Party, to support reversion to the Hindu state.

The report drew criticisms for its baseless accusation that BJP provided money to Nepali leaders for the Hindu cause. There were reports that the government sought clarification from the US side on the issue but it was never made public.

The US also has significant concerns over the religious freedom of the Tibetan community in Nepal, although the report does mention that there has been some improvement when it comes to the rights of the Tibetan community. The report cites Tibetan community leaders highlighting an increased ability to celebrate some religious and cultural holidays without police interference.

In June this year, the US came up with the Trafficking in Person’s Report which states that Nepal does not fully meet the minimum standards for the elimination of trafficking, but is making significant efforts to do so.

In its Country Reports on Terrorism, the US has raised questions regarding the security situation in Nepal’s international airport as well as the open border that it shares with India. A more significant threat is non-Nepali international terrorist groups using Nepal as a transit/staging point for soft targets, the report says. Because of the open border with India and insufficient security protocols at the country’s sole functioning international airport in Kathmandu, the report says, it could be used as a transit or staging point for international terrorists.

In its Country Reports on Human Rights Practices, the US has provided its perspective on various aspects of human rights in Nepal. On transitional justice, the report says the government and judiciary did not significantly address most conflict-era human rights and humanitarian law abuses committed by the Nepal Army, Armed Police Force, police and Maoists. The country’s two transitional justice mechanisms—Commission of Enforced Disappeared Persons and Truth and Reconciliation Commission—are not fully independent.

The ruling Nepali Congress has decided to hold its Mahasamiti meeting in November to undertake responsibilities assigned to it by the party’s policy convention as decided in the 14th general convention.

The Mahasamiti is the party’s apex body, which dwells on contemporary political issues. The party has also decided to hold a nationwide campaign between Aug 5 and Aug 14 and in the community from Aug 27 to Sept 10 for strengthening the party’s organizational base.

The week-long meeting of the Central Working Committee (CWC), which took place after a gap of one year, also made its position on a host of national agendas, but failed to address key intra-party issues such as holding a policy convention, forming the party’s department and addressing concerns related to the party’s sister organizations.  Regarding the current corruption scandals, the party has said that good governance is its top priority.

“The Nepali Congress has and will always be committed to making the country free from corruption by punishing anyone who commits corruption according to the law,” the party has said.

The party has also commended the government for the steps taken to investigate and prosecute fake Bhutanese refugee scam and Lalita Niwas land grab case. Several high level politicians, including senior NC leader Bal Krishna Khand, and business persons have been implicated in both scandals. 

The NC has said that its policy on corruption is that no innocent should be punished or guilty be spared. During the CWC meeting, however, many CWC members of the party had defended Khand and protested the call raised by the general secretary duo, Gagan Kumar Thapa and Bishwa Prakash Sharma, to suspend him. 

Through its CWC meeting, the Congress party has also recommended that the government ensure good governance, control corruption and uphold transparency and accountability, as desired by the people. The party has also called on the government to improve services provided through government offices.  Although there have been some improvements in the procedures for obtaining essential documents such as passports, national identity cards, driver’s licenses, etc., the NC has demanded “immediate and meaningful” improvements from the government to create a situation that can be felt by the consumers.

The Covid-19 pandemic and the Ukraine-Russia war made negative impacts on the production and distribution systems worldwide, affecting our society as well, according to NC, consequently, industrialists, traders, businessmen, farmers, and laborers are worried about running their businesses and maintaining their daily lives.
The coalition government formed in this situation is working to address these problems, and there have been some signs of improvement in the economy recently, the NC has said.

“To make these reforms comprehensive and sustainable, to strengthen the economy, and to make the banking system accessible to the general public, the Nepali Congress draws the government's attention to make important decisions on this sensitive issue,” the party stated.

While the government is taking meaningful initiatives to control price increases and shortages, it is the state’s duty to ensure smooth supplies of essential commodities to the people and provide relief to the people. So, the Congress has requested the government to conduct a proper study of low-income families, daily wage earners, street vendors who have been displaced and are currently employed, and make necessary decisions for their livelihood.

The CWC meeting also requested the government to conduct a serious and in-depth investigation into the smuggling of 100 kg gold through the Tribhuvan International Airport Customs Office and bring the culprits to book.

The party has also drawn the government’s attention toward shortage of fertilizers and seeds that farmers have been facing during the cultivation season. Due to low rainfall, paddy transplantation has not taken place on one-thirds of the land, which has had a negative impact not only on the daily life and annual income of farmers but also on the national domestic product, the party has said, calling on the government to provide fertilizer and seeds to the affected farmers at concessional prices.

The NC has also raised the issue of lumpy skin disease, which has killed and affected thousands of cattle across the country. The infection has become particularly hard on cattle farmers due to the ongoing economic recession, the party has said, urging the government to provide compensation to the affected farmers and distribute vaccines at the earliest.

The Congress party has also expressed concern that the paddy output could drop this year due to low rainfall. This could have a negative impact on the daily life and annual income of farmers, as well as the overall GDP of the country, the party has said. The NC has asked the government to take proper strategic precautions and manage possible food shortage.

The party has urged the government to declare areas where paddy transplantation is not possible due to delayed or insufficient rains as 'dry areas' and provide necessary relief and compensation to the farmers. Additionally, the NC has also called on the government to provide compensation to victims of floods, landslides, and other catastrophes in different parts of the country.

Similarly, the NC has urged the government to support the people who have been affected due to the wrong intentions of some microfinance banks and cooperatives. The party has asked the government to deliver justice to the depositors and take necessary decisions to support borrowers who have not been able to repay their loans taken on group guarantees.

The NC has also concluded that the enactment of the Citizenship Act, initiated by the party, has brought smiles to the faces of people. The party has requested the government to prepare Citizenship Regulations at the earliest and facilitate the process of citizenship distribution.

Stating that transitional justice laws are crucial to bringing lasting peace in the country, the NC has asked the government to pass transitional justice bills from both Houses of parliament by forging consensus among all parties.

The NC has also drawn the attention of the government to the need to bring crucial laws like the Federal Civil Service Act, Federal Police Act, Federal Education Act, among others, which are crucial for the smooth implementation of federalism.

Stating that groundwater levels in the Tarai Madhes region are depleting due to the impacts of climate change and environmental impacts on the Chure region, the NC has asked the government to find out the reasons behind this and provide a solution to the problem.

Along with government-to-government relationships, the Communist Party of China and India’s ruling Bharatiya Janata Party are competing to cultivate ties with Nepal’s political parties. Keeping their ideological positions at a bay, they are reaching out to all major parties in Nepal.  

High-level delegations from both the CPC and BJP are visiting Kathmandu, while leaders from various political parties in Nepal are also flying to China and India, with more party-to-party level exchange of visits on the cards. 

Political analysts say both New Delhi and Beijing are making a departure from their traditional policy of backing only specific parties and leaders and building ties with all political forces in Nepal, considering the political instability in the country.

The spectacular emergence of the recently formed Rastriya Swatantra Party and the resurgence of Rastriya Prajatantra Party—both of which are challenging the three traditional parties, Nepali Congress, CPN-UML and CPN (Maoist Center)—have also forced China and India to recalibrate their approach. 

The CPC has realized that by fostering and nurturing Nepal’s leftist forces is not going to secure China’s interests.  The BJP, which has been in power in India since a decade, also wants to achieve its agendas including Hindutva ideology in Nepal by roping in all political parties. For them, a favorable government in Kathmandu is not enough; they want the overall political environment of Nepal to be on their side.  

Political analyst Lokraj Baral says both the BJP and CPC are adopting “a realistic approach” in building ties with Nepal’s political parties. 

“There is no ideological foundation in such relationships because both sides want to appease each other to enhance their power.” 

Baral says the CPC is still more partial toward Nepali communist parties, even though it has increased its engagements with other political forces.

This week, Yuan Jiajun, member of the political bureau of CPC visited Nepal at the invitation of the ruling Maoist Center. During his stay, Jiajun met leaders from across the political spectrum. As Prime Minister Pushpa Kamal Dahal was out of the country, the Chinese leader held a virtual meeting with him. 

While the Chinese leader was in Kathmandu, a five-member delegation led by Phampha Bhushal of the Maoist party flew to India at the invitation of the BJP. The ties between the BJP and Maoist are only just evolving. Sources say lately, India's ruling party has also been approaching the UML.  

As for the Nepali Congress, it has always been close to India. Last year, the BJP had invited a group of leaders from the Congress party, which was led by Prakash Sharan Mahat. Former prime minister and Congress president, Sher Bahadur Deuba, had also visited the BJP headquarters in India before holding bilateral talks with Indian Prime Minister Narendra Modi. 

The engagement between China’s CPC and Nepal’s Maoist party has been there for a long time. During the insurgency period, Beijing largely supported Nepal’s monarchy, but it took no time to reach out to the Maoists, led by Prime Minister Dahal, after the party came to power following the fall of monarchy. Ideological proximity between the CPC and Maoist party brought them together. In the past six months, at least two Maoist delegations including one led by former speaker Agni Sapkota have visited China.  

Since the Maoist party is in power right now, Prime Minister Dahal is making utmost effort to strike a balance between India and China. He needs the support of both the CPC and BJP to stay in power.

But scores of Maoist leaders believe that they should step up engagement with China to reap the benefit from its economic development.

They are of the view that Nepal should immediately implement the Belt and Road Initiative (BRI) and other agreements reached between the two countries. Through cooperation with Nepal’s political parties, China wants to replicate its development model in Nepal, not export its political ideology, say some experts. 

Due to increased interactions, Nepali leaders too have started appreciating China’s development and its model.

During his talks with Nepali leaders, Chinese leader Jiajun said that China is willing to deepen practical cooperation under the BRI with Nepal, and deeply and solidly promote the strategic partnership of cooperation featuring ever-lasting friendship for development and prosperity between two countries.

China’s Xinhua news agency reported that the CPC is willing to strengthen exchanges and mutual learning with Nepali political parties to boost the development of China-Nepal relations. Jiajun told Nepali leaders that China is willing to enhance cooperation and exchanges with Nepal in agriculture, poverty reduction and education to enrich the relationship between the two countries through subnational exchanges.

Tanka Karki, former Nepali ambassador to China, says it is normal to build party-to-party relationships and there is nothing harmful about it. “Both countries want to enhance people-to-people relationship and political parties remain a key instrument of it.”

The relationship between Nepal’s Maoist party and the BJP is a new one. In July last year, as a party chair, Dahal visited the BJP headquarters in New Delhi and held talks with BJP President JP Nadda. After one year, BJP hosted the Maoists delegation in its party office for what they call to strengthen party-to-party relationship.

Perhaps, it is the result of cordial ties between the BJP and Nepal’s political parties, many Nepali politicians including Prime Minister Dahal are talking about protecting and promoting Hindu religion and culture.  

Not only India and China, the US, the UK and the EU countries are also trying to enhance their influence among Nepal’s political parties through bilateral exchanges and visits. They are mainly close with parliamentarians to influence the law-making process in Nepal.  

Political analyst Chandra Dev Bhatta says India and China’s increased engagements between the political parties of Nepal, can certainly be helpful to enhance relations at the political level which can also percolate at the peoples level.

“This is also particularly important when diametrically opposite political parties in terms of ideology are in power on both sides— BJP in India and Maoist Centre in Nepal. It will help resolve contentious issues between the two countries,” he says. “But if such engagements are done merely for other interests either to stay in power or to create a comfortable regime, they could backfire and damage the relations.”

The ongoing Central Working Committee (CWC) meeting of the ruling Nepali Congress underpins the fact that the grand old party is a deeply divided house. The party is not even one when it comes to the issue of investigating and prosecuting corruption scandals involving their own leaders. 

The CWC gathering also showed that its president, Sher Bahadur Deuba, for better or worse, remains a force to reckon with in the party, and that the general secretary duo, Gagan Kumar Thapa and Bishwa Parkash Sharma, are not as popular as one believes them to be—not at least among the CWC members.  

Remember the situation of the ruling Nepali Congress before the oft-deferred CWC? Scores of leaders including Thapa and Sharma were critical of Deuba for running the party like a hegemon, without a care for party statute or internal democracy. 

Thapa even contested and lost the Parliamentary Party leader election against Deuba. Other leaders in the NC meanwhile talked about convening the special general convention to replace Deuba.  

At the time it seemed that the Congress president had fallen out of favor, especially after he failed to give continuity to the electoral alliance forged with the CPN (Maoist Center) immediately after the general elections of November last year (the alliance did get continuity eventually after a short-lived ruling partnership between the CPN-UML and Maoists). Deuba took even more battering from his party colleagues following the by-election outcome in Tanahun-1, which was won by Swarnim Wagle of the Rastriya Swatantra Party. Wagle, a former Congress member, had only just quit his old party expressing displeasure with Deuba and his coterie. His electoral victory was resounding and that too in the traditional political base of the NC.    

Many Congress leaders and members demanded answers from Deuba. They wanted a meeting of the CWC, which had not been held for nearly a year even though the party statute requires it to be convened every two months. 

Meanwhile Deuba remained unfazed and continued to maintain silence, even when the fake Bhutanese refugee scandal broke out, which led to the arrest of his close confidant and former home minister, Bal Krishna Khand.    

When Deuba finally agreed to call the CWC meeting, many had expected that he would face harsh criticisms from the leaders for his wilful leadership. There was a litany of complaints against the NC president, ranging from taking unilateral decisions on party as well as national affairs to failing to fix the date of policy convention and not appointing the chiefs of party departments. 

But the CWC meeting saw a different—and unexpected—scenario. It was Thapa and Sharma who got the thrashing for airing the party’s dirty laundry in public. Ironically, the meeting was live streamed for the first time in the party’s history.

The two general secretaries were reprimanded for ruining the party’s image with their call for a leadership change. Several CWC members even excoriated Thapa and Sharma for supporting Khand’s arrest in the refugee scam. The majority of the CWC members are of the view that Khand should be protected and that he must not be suspended from the party. 

What transpired at the CWC meeting is a serious blow to Thapa, who is preparing to fight for party presidency in the next general convention. It is apparent that his party colleagues are not ready to back him.

Despite being popular at the cadre level, Thapa does not have a strong sway among central members of the party.

Senior leader Shekhar Koirala, another party leadership hopeful, remained largely silent throughout what could be dubbed as the trial of Thapa and Sharma. The scion of NC founding leader BP Koirala is said to be maintaining a distance from Thapa to win Deuba’s support in the party leadership race.

As a general secretary, Thapa presented a political document at the meeting, which also faced criticisms from several CWC members. Arzoo Rana Deuba termed the document as a “wish list of non-governmental organizations” that offers no clear direction to the party or the country.

Dozens of CWC members appreciated Deuba’s leadership. Surendra Pandey blamed Thapa and Sharma of spreading negativity against the party president. If Deuba sinks, he warned, both general secretaries and the party will sink.  

Leader Mohan Basnet, also the health minister, criticized Thapa and Sharma for trying to widen the factional rift in the party. 

Ahead of the CWC meeting, the two general secretaries had convened a meeting of district presidents which was boycotted by Deuba and his supporters

Another key agenda of Thapa and Sharma was fighting the next general elections alone, without forming any electoral alliance. Thapa had even suggested leaving the current coalition if the government fails to deliver on its promises.  

But the issue too did not get much support from the CWC members.  

Leader Badri Panday said as the elections are still four years away, there is no need to take any decisions on electoral alliance. 

According to CWC member Bhishma Raj Angdembe, the meeting indicates that the popularity graphs of both general secretaries are going down, while the graph of Deuba is going up. 

After listening to the largely unfavorable views of the CWC members for days, it was time for Thapa and Sharma to speak on Monday. Both of them appeared somewhat defensive. They even softened their positions on several issues. 

Regarding the issue of electoral alliance, Thapa said he was in favor of continuing the current alliance with the Maoist Center until the next general elections. On the issue of leadership change too, Thapa seemed flexible, saying that he wanted to promote internal democracy and the culture of healthy debate inside the party. 

He added that the Nepali citizens were increasingly growing despondent with the current political state of affairs, and that it was upon the Congress party to lead them out of this situation. But first, Thapa told the CWC meeting, the Nepali Congress party should put its house in order.

Sharma reiterated that the NC needs a deep retrospection in order to find its footing to lead the country.

What should be the size of the army in a country like Nepal?  Before the Maoist insurgency began in 1996, there were approximately 60,000 personnel in the Nepali Army. The number was significantly increased to fight the Maoist insurgents, and today the NA is 96,477 strong. In 2001, the government also founded the Armed Police Force, which acted as a paramilitary unit, to support counterinsurgency operations. 

Talks about resizing or ‘rightsizing’ the NA first found prominence after the Maoists joined the peace process with the signing of the Comprehensive Peace Agreement (CPA) in 2006. At the time, it was the right thing to do, since the former Maoist fighters were also being integrated into the national army, which would have increased the troop numbers and the budget.  

The CPA says: “... This includes, among other things, rightsizing, democratic restructuring reflecting the national and inclusive character and imparting training to the Nepali Army on the values of democracy and human rights.”  While the inclusive component of the CPA has already been implemented by the NA, the parts about rightsizing and restructuring have not. 

The size of the military has once again entered the national debate, and the NA is not taking it lightly. Responding to some media reports and opinion pieces, Army chief Prabhu Ram Sharma in March blamed “outsiders” for making comments about the required NA troop numbers. He didn’t name any particular individual or institution, but hinted that these “outsiders” were acting on the behest of foreign countries.

A few days back, the issue about the size of the Army was brought up in the National Assembly by CPN-UML lawmaker Bimala Rai Paudyal. Addressing the assembly, she said that there must be a review on whether the Ministry of Defense needs the current size of the national army.
“There aren’t any internal conflicts and there aren’t any chances of war from our neighbors,” argued Paudyal, also a former foreign minister.
Her remarks didn’t go down well with the military circle, as well as some politicians. Paudyal faced strong criticism, including from former Army generals, for stoking an unnecessary debate. 

Those against the idea of revising the size of the NA are of the view that this is not the right time to be debating about the issue. 

But Paudyal remains firm on her position. “Shouldn’t we evaluate the current scenario?” she says. “It is not necessarily a call for downsizing the army, but rather a suggestion to review whether to downsize or upsize the army.”   

She asks why there should be a controversy whenever we raise military matters. “These issues warrant serious deliberations and extensive research, especially considering our transition to federalism and the emergence of heightened border security threats,” says Paudyal. “Perhaps, we may even require a stronger army.”

The debate on the size of the NA is not a new one; it is a part of the CPA signed between the government and the Maoist party. The Interim Constitution 2007 had also mentioned about the size and democratization of the national army. The part 20 of Interim Constitution states talks about determining the appropriate number of the Army, its democratic structuring and inclusivity.  

In 2009, the Ministry of Defense had formed a committee to suggest ways for the democratization of the NA, but the report was never made public.

In compliance to the Nepali law which states that 45 percent of all vacant government positions be reserved for excluded groups, the Army in 2006, amended its Army Act. As per the amendment, out of the 45 percent reserved position within the NA, 20 percent of the seats are reserved for women, 32 percent for Janajati, 28 percent for Madhesi, 15 percent for Dalit and 5 percent for remote regions. But as far as the issue of rightsizing is concerned, there have been discussions in the academic sector but not at the state-level.

The Maoist party, which vehemently raised the issue of resizing the NA during the time of peace process, seems to have abandoned the topic now. As per the Maoist party’s demand, the Nepali Congress and UML too had agreed to mention this issue in the CPA, much to the displeasure of the Army. 

Deepak Prakash Bhatta, a security expert, says there can be discussions on resizing the NA only if the political parties, not individual leaders, officially make the position on it.  “Some people have spoken about it, but what is the position of political parties?” says Bhatta.

Both incumbent and retired NA officials suspect that some “foreign powers” are fuelling the debate.
One retired NA official says the NA does not have any objection to such a debate, but the recent noise about reviewing the size of the national army lacks maturity. “This is a very sensitive and comprehensive issue which requires in-depth study and deliberations,” he says.  

Purna Chandra Silwal, retired major general of the NA, says in a precarious geopolitical scenario marked, among others, by the Ukraine war and increasing Sino-Indian hostilities, countries have become more serious than ever before about their existence as their ballooning defense spending shows. “But, paradoxically, some of our leaders and opinion-makers are calling for downsizing of the national army,” he adds.

Major political parties have so far chosen to steer clear from the debate. UML senior leader Shanker Pokhrel says this is “an ill-timed debate” because we are passing through a political instability, and anarchism is creeping into society. “The size of Nepali Army is not only related to security aspects but also the international peace mission,” says Pokhrel.  

The current debate on the sizing of NA itself is problematic because it is too focused on downsizing it, instead of holding discussions on determining the right size. There could be discussions about the size of the army, experts say, but it can be decided only after assessing the long-term internal and external threats. Of late, beyond providing security, NA is also engaged in big development projects as well. 

Krishna Prasad Bhandari, NA spokesperson, says the Army is aware and informed about the ongoing discussions about the national army.  “The Nepal Army has been effectively and successfully performing the tasks provided by the government and mentioned in the constitution,” he says. 

Defense Minister Purna Bahadur Khadka has also defended the current number of NA in Parliament.  Speaking in the meeting of National Assembly Khadka on Thursday, he said the number of the army is determined on the basis of the country's geographical location, national necessity and current international scenario. He also said it is the government who decides the number of military personnel based on the recommendation of the National Security Council. 

Donald Lu, the US assistant secretary of state for South and Central Asian Affairs, visited Nepal this week to take stock of the progress on the Millennium Challenge Corporation (MCC).

The US embassy in Kathmandu said Lu’s visit was a part of his regular diplomatic engagement in the region. In Kathmandu, he met with various leaders and ministers to discuss the progress on the MCC Compact to date.

The Compact has two components: construction of a transmission line and road maintenance. The transmission line project under the MCC envisions construction of  around 315 km of double circuit high capacity 400 kV transmission lines and three new electricity substations. The transmission line will pass through Kathmandu, Sindhupalchok, Nuwakot, Dhading, Makwanpur, Chitwan, Tanahun, Palpa, Nawalpur, and Parasi districts. 

Similarly, the road maintenance project will focus on the East-West Highway in Dang district. Based on the results of the pilot, MCA-Nepal will further complete the Lamahi to Shivakhola section. At present, the total road segment proposed for maintenance in the East-West Highway is approximately 77 km.

These projects are set to commence in August with a five-year completion deadline or by 2028. The projects will be executed by Millennium Challenge Accounts Nepal (MCA-Nepal).

Lu had played a vital role in getting the MCC endorsed through Nepal’s parliament. Nepal’s political parties were heavily divided on the issue of ratifying the Compact through parliament. Those against the Compact, mostly communist parties, had raised unfounded suspicion that the US was trying to deploy its army in Nepal in order to contain China.

The Compact was ultimately endorsed by Nepal’s parliament with declarative interpretation (which the US has not recognized) amid protests in the streets, as Lu had warned that the US could review its relationship with Nepal if the MCC was discarded. 

China too was against the MCC ratification, and had openly fallen out with the US on the issue. Beijing suspects that the Compact is part of the US Indo-Pacific Strategy to stop China’s growing influence.  

Though Nepal’s parliament has passed the MCC, the US is still not wholly convinced it will move ahead smoothly. This skepticism is not just born out of continuing political opposition to the MCC in Nepal, but also of the technical hurdles at the local level.     

The main hurdle, according to an official at the Ministry of Finance, is land acquisition for the transmission line project. In some areas, people are urging the MCA-Nepal to change the route of the transmission line because it falls right over their homes and farmland, which they are unwilling to let go. The modality of compensation for acquiring land has also not been finalized yet.  

In April, Khadga Bahadur Bisht, executive director of MCA-Nepal, had informed the meeting of the MCA-Nepal board of directors that a technical survey of the electricity transmission line was completed, except on some segments due to social issues. Three months later, the problem remains as it is.

There is a lack of cooperation between MCA-Nepal office and Nepal government officials to resolve the local and technical issues. The task of land acquisition is being undertaken by district administration offices.

Regarding the land acquisition, field verification is going on in seven districts, except in Nuwakot, Sindhupalchok and Kathmandu. With the MCC implementation set to come into force in August, the task is unlikely to be completed on time.

There is also the task of forest census, which too remains incomplete. Forest clearance is one complicated task which needs to be settled in coordination with the Ministry of Forest and Environment and its subordinates. Here too the MCA-Nepal office has been unable to coordinate effectively with the concerned forest offices.

CPN-UML leader Pradeep Gyawali, who is also former foreign minister, says the MCC should be implemented honoring the deadline without any obstructions as it has already been endorsed by the Parliament.

However, both government and MCA-Nepal officials are uncertain about timely completion of the projects. They are brainstorming whether to commence the project in August and gradually complete the remaining tasks or commence the work only after all outstanding problems have been settled. 

Despite the challenges and risks, one official said MCA-Nepal has fixed August end as an entry into force date for the MCC.  

The MCC Nepal Compact is a five-year $500 million grant agreement signed between Nepal government and the MCC in 2017. The Nepal government has agreed to invest an additional $197m in the program, for a total of $697m.

Initially, the project should have come into implementation in 2018 which was delayed by four years due to the controversy surrounding its parliamentary endorsement. 

Mrigendra Bahadur Karki, Executive Director, Center for Nepal and Asian Studies, says the central focus of the US in Nepal at the moment is smooth implementation of the MCC. 

He adds since the MCC was protested by internal and external forces, the US is worried that the same forces would not delay its implementation. 

Currently, there seems to be no significant political opposition to the MCC, but technical issues at the local level are likely to delay the project. In case of a delay, the MCC project cost is likely to increase and may require additional Rs 5bn to complete, say some officials.