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For Prime Minister Pushpa Kamal Dahal, keeping the 10-party coalition intact is a major challenge. As much as it is important for Dahal to keep his key coalition partner Nepali Congress, the largest party in Parliament, happy, it is also crucial that he satisfy the concerns of fringe parties. Past experiences show that Dahal and Congress President Deuba can manage their differences. But the small parties in the government, who are more likely to be ignored in the decision-making process, are the ones who could create trouble for the prime minister. Prime Minister Dahal, whose party, CPN (Maoist Center) came out third in the general elections of November last year, is under immense pressure to deliver. Failure to lead a successful government could see his party slide further behind in the next election. This is a haunting but real prospect, as new forces like the Rastriya Swatantra Party are already threatening the major parties that have hitherto dominated Nepal’s political scene. But in order to deliver, it is not enough for Dahal to just keep the coalition intact. This much is clear from the events of the past few months. Dahal also needs to maintain a good rapport with the main opposition, CPN-UML, particularly its leader KP Sharma Oli. Again, if we consider the past events, Dahal and Oli cannot work together. If anything, Oli and his party will try to obstruct and oppose the decisions of the Dahal government. Let’s regard two cases: transitional justice bill and appointment process of the Supreme Court chief justice. Prime Minister Dahal wants to fast-track the passage of the bill that aims to amend some clauses on the Enforced Disappearances Inquiry, Truth and Reconciliation Commission Act, 2014. The bill has already been tabled in the House of Representative, which has met with widespread criticisms for its shortcomings. National and international human rights bodies have denounced the bill, stating that it could provide space for blanket amnesty on serious human rights violations committed during the 10-year long insurgency. As of Thursday, 26 lawmakers have already registered their amendment proposal on the controversial bill. The prime minister could ignore the concerns of lawmakers from other parties, but not that of the UML, the second largest party in Parliament.  UML Chairman KP Oli has taken a firm position that the bill should be in line with the Supreme Court’s verdict of 2015 and must meet the international standard on transitional justice law. Over the past few weeks, Prime Minister Dahal has held a series of meetings with Oli, but the latter has shown no signs of softening his stance. The UML leader is of the view that the bill should be discussed and revised in the relevant parliamentary committee before its passage, instead of being fast-tracked. Without Oli’s support, Dahal cannot endorse the bill. This means there will be no progress on Nepal’s long overdrawn transitional justice process. Dahal wants to complete the tasks related to transitional justice within the next two years of his premiership, before he steps down as part of the power-sharing deal with his coalition partners. Prime Minister Dahal and Oli also stand divided on the issue related to the appointment of a new chief justice. In the Constitutional Council, which has the mandate of making recommendations for appointments in constitutional bodies, the UML holds the majority. Besides Oli, Speaker Dev Raj Ghimire and National Assembly Chairperson Ganesh Prasad Timalsina, both from the UML, are in the council. So, without support from Oli, Prime Minister Dahal cannot make any appointments in constitutional bodies including the Supreme Court. Oli also enjoys an upper hand over Dahal in both houses of federal parliament, each led by UML candidates. Although the speaker of the House of Representatives and the chairperson of the Upper House are considered neutral posts, they can still work in favor of their respective parties. In fact, two former speakers, Agni Prasad Sapkota and Krishna Bahadur Mahara, have already demonstrated how they can sow partisan division. The relationship between Dahal and Oli is fraught with deep mistrust. They have betrayed each other in the past, and the likelihood of them working together appears very slim. There is no smooth sailing for the prime minister.

As electioneering heats up for the crucial by-election set to take place in Tanahun-1, Bara-2 and Chitwan-2, senior cross-party leaders are pouring into these constituencies to back their candidates. Typically, a by-election in three constituencies is not a national event. But not this one. The April 23 by-election will be a litmus test for the old parties and the new ones. Its results will show the mood of the voters, whether they still support the old  forces, or prefer the new dynamic parties to lead them. In Tanahun and Chitwan constituencies, a three-way competition is expected among the Nepali Congress, the CPN-UML, and the Rastriya Swatantra Party.   In Bara-2 the main contest is between the CK Raut-led Janamat Party and the Janata Samajbadi Party headed by Upendra Yadav, who himself is competing for the seat. The Swatantra Party and Janamat Party emerged as agents of change and alternative to old parties through the general elections held in November last year. Some political analysts say despite some controversies and hiccups, these two parties still hold a significant influence among the voters. Major political parties like the Congress and UML, and Yadav’s Samajbadi Party, a dominant political force in the Madhes region, are aware of the immense popularity gained by the upstart political parties. In Bara-2, where the by-election is being held after Ram Sahay Yadav was elected the Vice President, it is a do or die test for Janata Samajbadi leader Yadav, who lost in the last year’s general elections to Janamat Party’s Raut from Saptari-2. Raut, who aspires to become an influential leader from the Madhes region, is trying to defeat Yadav once again. In Tanahun-1 and Chitwan-2, it is the RSP against the NC and UML candidates. The RSP has fielded economist and former Congress member Swarnim Wagle in Tanahun-1. The party chair, Rabi Lamichhane, himself is re-contesting the seat from Chitwan-2, which he had lost over an invalid citizenship case. For the NC, winning the by-election in Tanahun-1, a seat vacated by its leader Ram Chandra Poudel after being elected the country’s President, is a matter of prestige. It has fielded Govinda Bhattarai, a Tanahun resident, against RSP’s Wagle, who hails from Gorkha. Wagle, who once described himself as a lifelong NC supporter, recently severed ties with the party, noting his immense displeasure with the Congress leadership, particularly the party leader, Sher Bahadur Deuba, and his wife Arzu Rana Deuba. Within days, he joined the RSP and was named the by-election candidate from Tanahun-1. If Wagle wins the by-election, it will be a serious blow to the NC. Political analyst Puranjan Acharya says Wagle’s win could trigger a departure of many NC supporters, especially the young ones. A cursory look at the social media trends already indicates this possibility. Many Congress sympathizers and cadres are supporting Wagle’s candidacy, and criticizing the Congress leadership for pushing him away. Wagle could very well pull off a victory in Tanahun-1, handing an electoral upset to the NC—and a lesson to the party leadership. For a long time, the Congress party has remained a divided house due to the bitter relationship between its two leaders, President Poudel and Govinda Raj Joshi. Joshi still holds a significant sway among Tanahun voters. Come April 23, approximately 7,000 of his supporters are said to vote for Wagle to defeat NC’s Bhattarai. The nationwide craze behind the RSP could also work in favor of Wagle. In the last year’s general elections, scores of youths studying or working abroad had convinced their parents, grandparents and relatives in Nepal to vote for Ghanti (bell), the election symbol of the RSP. The same scenario could play out in the upcoming by-election. Besides, Wagle holds a dazzling CV and is highly regarded both by a section of the intelligentsia as well as common people, making him a formidable candidate. The UML has fielded former Nepal Police chief Sarbendra Khanal in Tanahun-1, and the party is banking on possible vote splitting between Bhattarai and Wagle to win the constituency. But analysts say it’s a long shot, as scores of UML voters are also showing their support to Wagle. For the RSP, winning the by-election in Tanahun-1 and Chitwan-2 will be gaining a significant vote of confidence from the public. Soon after the party won 20 seats in the lower house of federal parliament, it was caught up in one controversy after another. First, its leader Lamichhane was accused and found guilty by the court for presenting invalid citizenship certificate to contest the polls and lost his positions as the Home Minister and the lawmaker. Following the incident, Lamichhane made several controversial remarks at a press meet against the mainstream media, editors and publishers, and announced to recall its ministers from the government led by Prime Minister Pushpa Kamal Dahal. Most recently, the RSP was caught up in another controversy, where its lawmaker Dhaka Ram Shrestha was caught on a recorded telephone conversation, soliciting bribes from businessman Durga Prasai. Analysts say the by-election results of Tanahun-1 and Chitwan-2 will show whether the voters are still behind the RSP and behind its charismatic leader, Lamichhane. The victory will also establish the RSP as a clear contender to the traditional political parties, mainly to the NC, the UML and the CPN (Maoist Party), in the next local and parliamentary elections. For Lamichhane, who is once again contesting the by-election from Chitwan-2, securing a back-t0-back victory is highly likely, despite his reputation and popularity taking some beating due to dual citizenship and passport controversy. As for the NC, which emerged as the largest party in parliament in the last year’s general elections, losing the Tanahun and Chitwan constituencies, despite the backing from the Maoists and the CPN (Unified Socialist) voters, could have a psychological impact on the party’s rank and file. A defeat means the party’s political base is eroding. Congress has mobilized its two general secretaries, Gagan Kumar Thapa and Bishwo Prakash Sharma, to rally the voters behind the party. The duo is joined by a bevy of influential party leaders, and they are all trying hard to win the by-election, particularly in Tanahun-1. To this end, they are trying to portray Wagle as someone who betrayed his former party and as an opportunist who joined the RSP to become a parliamentarian. Wagle remains undeterred. Speaking at an election rally on Monday, he claimed that the ruling coalition has set upon him all the political and state mechanisms to beat him in the by-election. Political analyst Acharya says NC President Deuba has made his mission to stop Wagle’s political rise at all cost. If the party loses the by-election, he says it will send out a big tremor inside the Congress and his leadership will have to take the blame for the consequences.

The new deadline set by Nepal Army (NA) to complete the construction of the Kathmandu-Tarai/Madhes Fast Track Project is just 17 months away. But the project has achieved only 21.81 percent physical progress and 20.49 financial progress in the past five years. The initial deadline of the expressway was Sept 2021, and was extended to Jan 2025 due to a lack of progress. At the current progress rate, the NA is sure to miss the latest deadline again. Tulsi Sitaula, former government secretary, says the deadline cannot be met due to various reasons including the dispute over detailed project report (DPR), and  the Army’s lack of experience in handling the issues such as public procurement and dealing with international consultants. The ongoing economic crisis is also likely to affect the project’s progress, as the government is not in a position to inject sufficient funds, adds Sitaula. Another reason why the fast-track work hasn’t picked up the desired pace is the court cases against the NA on various contract-related issues. According to sources, the Army is seeking another two-year deadline extension for the project. The Ministry of Defense is likely to approve the deadline extension request, provided the NA gives its assurance that it will complete the work. Sources say the Ministry has sought a revised proposal including the project cost from the Army. The government awarded the NA the contract to develop the mega infrastructure project on May 4, 2017.  According to the 69th annual report of the Office of the Auditor General, the project has spent Rs 2.76bn (8.04 percent) of the total expenditure so far on purposes unrelated to the project. Similarly, the project has spent Rs 1.53bn (4.48 percent) of the total expenditure on consultancy services. It's worth noting that the consultant's contract is not based on the project cost or scope, but rather on the project duration. This means that if the project is not completed on time, the consultant will have to be paid additional fees. The OAG has found that the project has paid Rs 52.94m for the services of two consultants, despite already hiring an international consultant for similar services. The OAG has deemed this expense inappropriate and has highlighted it in its report. Stating that frequent changes in key personnel of the project could impact its quality, the OAG has recommended that the project should make necessary arrangements to avoid such changes, except in situations prescribed in the public procurement regulations. Although Section 4 of the EPC (engineering, procurement and construction) contract guidelines requires offices to obtain pre-approval from the concerned ministry before initiating procurement through the EPC model, the fast-track project awarded contracts worth Rs 8.82bn for five packages prepared by consultants under the EPC, lumpsum, and item rate contract methods. The OAG had previously highlighted in its 59th annual report that the project office disqualified 21 bidders and awarded the contract to only one qualified contractor for Package 2 (tunneling works). Rs 6.32bn of the package's total cost of Rs 24.23bn has been spent. The project still needs to acquire 392 ropanis of land for the project's right-of-way, out of the targeted 5,172 ropani that should have been acquired by last year. Additionally, there has been no progress in acquiring an additional 49.3 ropanis for river training works, 49 ropanis for tunnel management and building, and 11 ropanis for the Mahadevtar base camp, as per the OAG report. Furthermore, the report indicates that the project office has not provided information regarding additional costs incurred for consultancy services related to river training works. The project had hired a separate consultant for this work, as noted by the OAG. Despite the fact that the cost of extending electricity lines and installation of transformers is supposed to be covered by the contractor company, the project office has paid Rs 18.27m to the Nepal Electricity Authority. The OAG has advised the project office to recover this amount, but it has not done so yet. The OAG has also noted that the project office has not maintained proper records of the sand and aggregates excavated during construction works, as required by the law. The project office has failed to meet the legal requirement of transplanting 25 saplings for every tree felled by the project. Altogether, 27,370 trees have been felled so far, which means that it needs to transplant 684,250 saplings. However, the NA has only transplanted 614,595 saplings to date. The project involves the construction of 72.5 km roadway, 87 bridges, tunnels, interchanges, toll plazas, and rest areas, among other features. The total estimated cost of the project is Rs 213.95bn, which includes environmental and social costs as well as contingencies. The project office has released Rs 3.07 billion mobilization amount for three packages so far. However, the contractor of Package No. 3 was provided Rs 432.26m under a second installment on a different bank account even before the design work was approved. The project office has been found preparing cost estimation of Packages 1 and 2 even before getting norms for tunneling works approved by the government. The estimated cost of Package 1 was Rs 24.21bn while the contracted amount is Rs 21.51bn. Similarly, the estimated cost of Package 2 was Rs 29.32bn while the contract amount was Rs 28.53bn. The project hasn't prepared the design of a 6.4-kilometer section in Cluster 1 of the Khokana area due to a land acquisition dispute with the local people. The NA is requesting the government to resolve the issues surrounding the Khokana area, but nothing has come of it yet. The mega infrastructure project aims to connect Kathmandu to the southern plains through a six-lane expressway. The project is expected to significantly reduce travel time and boost economic growth in the region. Info for front page and box for second page

1. Details of Financial Progress:

House Speaker Dev Raj Ghimire adjourned Wednesday’s session of Parliament until Monday due to the lack of quorum. Although the Parliament record for the day showed 167 “present attendance”, there were only 61 lawmakers inside the Parliament hall at the time of meeting. The Parliament must have the presence of one-third members (69 lawmakers) to make up the minimum quorum, or else the meeting cannot take place.   This is not the first instance where a Parliament session was canceled due to high absenteeism. It is also not the first case of lawmakers visiting the Parliament only to mark their attendance, so that their remuneration and allowances are not canceled. Many lawmakers make time to attend public events and functions, but when it comes to their main duty, they are often a no-show. Over the past three months, lawmakers were busy with the preparation of working procedures of the House and with the elections of president, prime minister, speaker, deputy speaker, and the prime minister’s vote of confidence. Ideally, the Parliament and its members are supposed to be busy right now, getting on with the core business of lawmaking. There is an urgent need to endorse some crucial bills after thorough screenings by parliamentarians. But there seems to be no sense of urgency on the part of political parties, lawmakers and government. For instance, a bill to amend laws related to prevention of money laundering and promotion of business environment has been registered in Parliament. The bill proposes amending 20 laws related to money laundering. Considering the urgency of matter, the erstwhile government had introduced an ordinance on the same issue, but former President Bidya Devi Bhandari had disapproved it on the grounds of looming elections. Endorsing the bill is crucial because the delay could lead to Nepal being graylisted by the Financial Action Task Force (FATF), a global anti-money laundering watchdog. Getting gray-listed by the FATF means earning Nepal disrepute for not being financially transparent. It could also affect the country's dealings with international financial institutions. But rather than acting quickly to endorse the bill, the lawmakers are skipping parliamentary meetings. Had they any sense of urgency, they should be exerting pressures on the government to endorse the bill at the earliest. Unfortunately, that is not the case. Similarly, the government has also tabled a bill to amend the transitional justice law. The bill has drawn criticisms from the main opposition, CPN-UML, international community and conflict victims. The government wants to fast-track the bill, but opposition parties and rights activists want intensive consultations and revisions on the proposed amendment bill. Parties are likely to forward the bill to the parliamentary committee for further deliberations, but the committees have not been formed yet. However, lawmakers alone cannot be held responsible for the dismal performance of Parliament. After the promulgation of the new constitution in 2015, the government and leaders of major political parties have paralyzed the House proceedings on various occasions. One of them is the state of constant tussle between the prime minister and House Speaker. Former prime minister KP Sharma Oli and then speaker Krishna Bahadur Mahara were often at odds. It was the same between immediate past prime minister Sher Bahadur Deuba and erstwhile speaker Agni Sapkota. Now, in keeping with the culture, incumbent Prime Minister Pushpa Kamal Dahal and Speaker Ghimire are also likely to feud. Ghimire was elected from the opposition, UML, and there is a growing mistrust between him and Dahal. A few days back, UML Chairman KP Sharma Oli said that a conspiracy was afoot to impeach the Speaker Ghimire. Khim Lal Devkota, a member of National Assembly, points out various reasons behind the dismal performance of Parliament. There is always a lack of coordination and communication between executive and legislature, which is important to make parliamentary activities effective and result-oriented, he says. It is the responsibility of the government to provide businesses to parliament, adds Devkota. In his view, all major political parties including the main opposition should be serious about making the Parliament more vibrant. Experts say political parties are making legislative bodies as their power center and making only those laws that serve their personal interests. The transitional justice amendment bill is a case in point, says former Supreme Court justice Balaram KC. The government wants to get it endorsed without intensive deliberations in the House, which, according to KC, is an act of betrayal against the people. The role of Speaker is also equally important for a smooth functioning of Parliament. The speaker, say experts, should take strong actions against those lawmakers who skip the House sessions without strong reasons. It is also the job of the Speaker to talk with the government and political parties to ensure that the regular business of Parliament takes place without obstructions. Former justice KC says successive governments have shown the tendency of bypassing the Parliament and relying on ordinances to pass new bills. This would not happen if we had a strong parliamentary practice, he adds. To discipline the lawmakers, many countries have a provision of preparing a report card of every parliamentarian, which includes the attendance, activities, and speeches of individual parliamentarians. Similar practice is not followed in Nepal. The Parliament Secretariat only keeps the attendance records of the lawmakers. It has been six months since the current parliament was elected, and over this period, it has not accomplished any notable task.

It has been almost eight years since Nepal adopted a new constitution. In this period, the constitution has been amended twice—first in 2016 to address the concerns of Madhes-based parties, and second in 2020 to update the country’s map incorporating the areas disputed with India. The Madhesi and the Janajati communities are still calling for amendments to the charter in order to address their demands, but without strong political backing and representation in federal parliament, their voices are not being heard. It was widely expected that the 2015 constitution would set Nepal on the course of political stability and economic development. But the political climate so far has only but dashed the public hope for a stable, growing nation. People’s frustration against political parties, especially the old, established forces, has reached a tipping point. Politicians and leaders have paralyzed key state institutions such as the judiciary, legislature, and the president’s office. There is a growing tussle between the Office of the President and Office of the Prime Minister and Council of Ministers. Frequent government changes have become a new normal. Nepal has witnessed six governments in seven years. Former chief justice Kalyan Shrestha says all the political dysfunctions and maladies post-2015 are the results of some provisions in the constitution that have cemented heavy political control over state apparatuses. Moreover, he adds, numerous provisions in the constitution including some fundamental rights remain unimplemented. There is a growing demand among some sections of Nepali society and even inside some major political parties for reinstating unitary government system by doing away with federalism. This begs the question: Who is responsible for this situation: the constitution or the political parties? Constitutional expert Bipin Adhikari says while the constitution could be reviewed, we must also consider whether we have a favorable situation for constitution amendment. The experience of last eight years shows that the new constitution has been accepted by wider section of society, adds Adhikari. He personally believes that the problem lies with the political parties and their leaders, rather than the constitution. To date, political parties are not fully committed to some of the key spirits of the constitution, such as federalism, fundamental rights and the issue of inclusion. Adhikari says Nepal’s political parties and their leaders are suffering from a bad case of elitism. Instead of finding faults with the constitution, he adds we must ask why the constitution has not been fully implemented. Political analyst Chandra Dev Bhatta, however, holds an opposite view to Adhikari. He is in favor of reviewing and amending the constitution. Bhatta says we never had problems with the constitution in the past, but only with the political actors. These days we have more problems with the constitution than with the political actors, he adds. That said, Bhatta also strongly believes in changing our attitude. Nepal’s fundamental problem, he says, is lacking the capacity to honor and uphold constitutional behavior. Of course, no constitution is prefect in itself and they can certainly be improved over time, adds Bhatta, but unlike the past constitution, our political parties and leaders have truly upheld the new constitution. Political parties have developed the tendency of explaining and interpreting the constitutional provisions as per their interests and conveniences, says Bhatta. The final arbiter of the law and the constitution is the Supreme Court. But in Nepal, major political parties have reduced the highest court of the land into their playground. Experts are of the view that on the basis of the experiences of the past eight years, there should be an overall review of the constitution, as parties have failed to implement it to the full. The 2015 statute was a document of compromise among traditional parties and the then Maoist rebels. Soon after its promulgation, political parties and the communities based in Madhes staged protests calling for various demands that were unaddressed. They are still clamoring for constitutional amendments to guarantee them greater rights and representation. But constitution amendment is not an easy job. Unless all major parties are on board, there cannot be any amendment to any provision in the constitution. According to article 274 of the constitution, no amendment shall be made to this constitution in manner to be prejudicial to sovereignty, territorial integrity, independence of Nepal and sovereignty vested in the people. Other clauses of the constitution, however, could be amended. For example, a bill to amend or repeal any article of the constitution may be introduced by either house of the federal parliament. Such a bill should be made public within days of its introduction in the concerned house. Some experts, however, say that constitution amendment at this point of time would be tantamount to opening the Pandora’s box, because there are various forces who want to review the constitution on their own terms. If the amendment process is initiated, they say, it would be difficult to meet the demands of various conflicting groups. For instance, royalist forces like the Rastriya Prajatantra Party are pressing for an amendment to reinstate the Hindu state and constitutional monarchy. Likewise, parties like CPN (Maoist Center) are trying to introduce presidential rule and make changes to the existing electoral system. Expert there are too many contradictory demands that could upend the whole system. Here are the views expressed by former chief justice Kalyan Shrestha, former speaker Daman Nath Dhungana and former law minister Nilambar Acharya at a program organized by Tanka Prasad Acharya Memorial Foundation. ‘Centralized mindset will take us nowhere’  Kalyan Shrestha, Former chief justice Federalism was a point of departure for us, but it is unlikely to succeed. Without a creative roadmap, it is unlikely to be sustainable in the long run. The current federal government is more of a ‘centralized’ government rather than a true federal one, as it aims to retain power at the center and is hesitant to devolve power and resources to subnational governments. The tendency to centralize the law-making process and withhold necessary laws from subnational governments is still prevalent. Selling the concept of centralization as federalism will take us nowhere. Furthermore, political appointees hold the majority in our constitutional bodies. This means whatever they say will be the final decision. The work done so far has not aligned with the spirit of the constitution. The 1990 constitution looked good on paper. The new constitution has several provisions from the old one. Unfortunately, due to the centralized mindset of our political leaders, the situation is deteriorating. ‘PM should not have arbitrary decision-making power’  Nilambar Acharya, Former minister It is imperative to review the process of government formation. Perhaps, only the party that secures electoral majority should be allowed to form a government. We need to establish a philosophical basis for this and clarify the provisions in the constitution. It is also crucial to define the rights of the prime minister who has resigned and the prime minister who has not yet received a vote of confidence. Additionally, we should outline the rights of the prime minister after an election has been announced. The current system, which permits arbitrary decision-making from the prime minister, must be rectified. ‘Parties must have courage to amend constitution’  Daman Nath Dhungana, Former speaker The country has experienced radical changes, but the political parties have struggled to effectively implement them. Despite adopting a new constitution, they have not demonstrated the capacity to work in its spirit. There is a lack of a functional apparatus to govern the state. The parties need to have the courage to pursue constitutional amendments. Rather than solely focusing on contesting elections and gaining state power, they should also have a clear plan for governance. We need a broad national consensus.

Nepal currently has diplomatic relations with 178 countries, but maintains residential missions in only 40 of them. The government runs most of these missions from rented properties, for which it spends billions of rupees every year. The costs of maintaining residential embassies outweigh the benefits, say government officials and former diplomats. According to them, Nepali missions are not yielding the desired results, particularly on the economic diplomacy front. There are a couple of reasons for this. An official at the Ministry of Foreign Affairs (MoFA) says failure of successive governments to appoint the right person for the ambassadorial role is the main reason for the poor performance of Nepali foreign missions. Nepal government assigns ambassadorial jobs to both party loyalists and career diplomats. And in the case of the former, there is always a chance of conflict between them and the MoFA. Political appointees are rarely knowledgeable about foreign policy and international relations, and the host countries do not take them seriously. The MoFA official says foreign governments would rather directly deal with the leadership in Kathmandu, instead of reaching out to unqualified ambassadors. Another reason is political instability in Nepal. Frequent government changes have resulted in ambassadors getting recalled from their jobs before they could complete their tenure, adds the official. A lack of coordination between embassies and the government is also affecting Nepali diplomacy. The ministry official says when there is no clear policy guidance regarding foreign relations, embassies and the ministry work according to their own rules and principles. Besides, the status of some ambassadors to powerful countries like India, China and the United States of America get ministerial status, making them senior to even foreign secretary. The MoFA official says such ambassadors do not want to brief about their activities to the department heads, which are led by joint secretaries, because they feel their position is on a part with that of a foreign minister. Some former ambassadors appointed on political quota, however, blame the MoFA for creating obstacles. Bishwambhar Pyakurel, who formerly led the Nepali mission to Sri Lanka, claims the bureaucracy is not serious about any issues. Ambassadors do not even have the authority to evaluate the performances of staff members working under them, he adds. Career diplomats who become ambassadors are also not faring well. They are scared of taking decisions in order not to create a controversy or anger the government, as it could affect their future promotion. The MoFA official says career diplomats who become ambassadors are happy just to perform their routine work. For instance, Nepali migrant workers, mainly in the Persian Gulf countries, continue to face hardship and exploitation, but our embassies there have not done little to address their problems. With the ambassadors either underperforming or reluctant to perform at all, Nepali embassies are only racking up bills while doing little to justify their existence. Let’s consider the expenses of our embassies, which are ever increasing. According to the report of the Auditor General, in the previous fiscal year, the government spent Rs 906m on rent and upkeep of its foreign missions. The government has taken a policy of purchasing land and buildings for its embassies. But so far, only the Riyadh mission has bought a property for the purpose, for which it paid Rs 527.7m. The government has also bought land to construct non-residential buildings in Canberra, Kuala Lumpur, Colombo, Islamabad, and Beijing, but the properties remain vacant to this day. The government released Rs 101.5m to pay leasing fees for Nepali missions in these five cities in the running fiscal year. This cost would have been saved if they had their own buildings. The MoFA had also allocated Rs 700m to build embassy buildings in Beijing and Canberra this fiscal year. However, the funds were transferred elsewhere, and Canberra received only Rs 1m of the allocated sum, which remains unspent. The Office of the Auditor General has instructed the Foreign Ministry to construct embassy buildings on its land to reduce leasing expenses. The Nepali Embassy in Canberra has leased 6,198 square meters of land for 99 years by paying a fee of AUD 1.2m.  According to Clause 3 (A) of the lease contract signed on March 21, 2018, the embassy was required to initiate building works within 18 months of the contract signing and complete them within 36 months. The Australian Capital Authority had given the Nepali Embassy until May 5, 2022, to begin construction works. However, 50 months since the signing of the contract, the embassy has only come up with the drawings of the building. The embassy has notified that the procurement process will begin once resources for construction are ensured. Similarly, two buildings built on 2,867 square meters of land owned by the Nepal government in Bonn remain unused after the embassy was moved to Berlin after the unification of Germany. But the embassy has been paying 8,626 euros annually as security utility fees for this property in Bonn. In the past 21 years, the government has spent more than Rs 18.6m on the maintenance and upkeep of its unused buildings in Bonn. The OAG has suggested in previous reports that the government should manage the property through sale or other means. The embassy notified the Foreign Ministry only recently that it has begun the process of selling the property. The Nepal government also owns three buildings, including a chancery, ambassador's residence and staff quarters, in Washington DC. About 30,000 square feet of land out of the 0.93-acre property that houses the ambassador's residence remains unused for a long time. The OAG has called on the government to make use of the land at the earliest. Since the government has been paying insurance and other fees for assets that are no longer in use, the OAG has advised that the concerned missions can take needful decisions for their proper management. However, there is a need to establish proper work procedures for the management of such assets. Lucky Sherpa, former ambassador to Australia, says bureaucratic hurdles from the MoFA are the main reason why the embassies are unable to take the initiative to manage such properties.  She says ambassadors cannot do anything because the foreign secretary rarely receives their calls. The process of opening embassies is not target-driven. Embassies are opened on the whims of top officials or politicians, not on the basis of necessity and proper evaluation, adds Sherpa. Nepal has bilateral trade with 154 countries, but enjoys a trade surplus with only 33 countries, including Denmark, United States, Algeria, Cambodia, Norway, Romania, Chad, Uruguay, Afghanistan, and Latvia. Most Nepali embassies have not made any progress to bridge the trade deficit. India, United States, Germany, United Kingdom, Canada, Turkey, France, Australia, Japan, and Italy are the top 10 export destinations of Nepal. Nepal’s passport is among the weakest in the world. According to the Henley Passport Index, it ranks on 102nd spot out of 108 countries, below North Korea and Palestinian Territory and one spot above Somalia. Analysts say so long as political instability continues to reign supreme in Nepal, political parties continue to appoint their loyalists to head foreign missions and bureaucracy continues to function with traditional mindset, the country will never prosper and its passport will not get strong. MoFA Annual budget  2022/23: Rs 5.8335bn 2021/22: Rs 6.0507bn 2020/21: Rs 6.5171bn   Nepali missions in numbers Diplomatic relations: 178 Trade relations: 154 Number of embassies: 30 Permanent mission: 3 Consulate general: 7 Honorary consuls: 53 Annual rent fee: 906m Key priority issues 

1. Trade imbalance
2. Passport category
3. Foreign investment
4. Resolving migrant issues
5. Tourism promotion

Preparations are underway for Prime Minister Pushpa Kamal Dahal’s visit to India. Although Dahal is yet to receive a formal invitation from India, his team expects it to arrive any day now and they are preparing accordingly. The prime minister’s trip will likely focus on enhancing the development partnership between Nepal and India. The Nepal-India relationship has witnessed several ups and downs at the highest political level in recent years. Contentious issues such as the Peace and Friendship Treaty of 1950, the Eminent Persons' Group (EPG) report, and border disputes have consistently figured in various levels of bilateral talks. These issues are likely to be raised during Dahal’s visit to India. Despite facing challenges and obstacles, connectivity and development projects between the two countries have made significant progress in the past decade. Officials say Prime Minister Dahal’s India trip could be centered on giving further momentum to these projects. Since the 1950s, the Indian government has been extending financial and technical assistance to Nepal for the implementation of large-scale development infrastructure and connectivity projects. These projects encompass various areas such as education, health, irrigation, and rural infrastructure. The 2022 Annual Report of the Ministry of External Affairs of India states that cross-border connectivity projects, such as rail links, roads, and Integrated Check Posts (ICPs), are progressing well. During Indian Foreign Secretary Vinay Mohan Kwatra's recent visit to Kathmandu, too, the two sides reviewed the projects and expressed satisfaction with the progress made. In recent years, Nepal and India have completed several major flagship projects, including the first-ever cross-border petroleum products pipeline in South Asia—from Motihari in India to Amlekhgunj in Nepal. The project was completed in 2019 and is already operational, facilitating the supply of petroleum products. Further discussions are underway to extend the pipeline to Chitwan in central Nepal, as well as to construct a new pipelines in eastern Nepal. Significant progress has been made in improving cross-border connectivity as well. Two Integrated Check Posts (ICPs), located at Birgunj and Biratnagar, are fully operational, facilitating the movement of approximately two million passengers and cargo traffic annually. Furthermore, additional ICPs are under construction, indicating the commitment to further enhancing cross-border trade and transportation. In the field of power transmission, three cross-border power transmission lines have been constructed, supplying 600 MW of electricity to Nepal, which has contributed to the development of the country's energy infrastructure. Road connectivity projects have also gained momentum, with India's assistance in the construction of 807 km out of the 1,024 km-long East-West Highway in Nepal. As of December 2022, all 14 Tarai road packages, completed under Indian assistance of Rs 5bn, have been handed over to Nepal. Several other roads are also under construction. Progress in the development of cross-border rail networks between Nepal and India has also been encouraging. The railway projects between the two countries include the operationalization of the Jayanagar-Bardibas cross-border section and Jogbani-Nepal customs yard rail section. In June 2022, a Bharat Gaurav train was flagged off, connecting the holy city of Janakpur in Nepal with Ramayana circuit locations in India. The Jayanagar-Kurtha stretch of the Jayanagar-Bardibas broad gauge project was also launched and operationalized in April 2022. There has been notable progress in the construction of a 136-km broad gauge electrified railway line that will connect Kathmandu with Raxaul. The Indian side has already completed the preliminary survey, and the location survey tasks are currently underway. It is worth mentioning that this railway line coincides with China's plan to construct the Kathmandu-Kerung railway line, for which a Chinese team is conducting a feasibility study. Likewise, there has been visible progress in bilateral energy cooperation. In 2022, the two countries signed a joint vision statement on power sector cooperation, outlining key pillars for collaboration. These include joint development of power generation projects in Nepal, cross-border transmission infrastructure, bi-directional power trade, coordinated operation of national grids, and institutional cooperation in sharing the latest operation information, technology, and know-how. Furthermore, hydropower projects being executed by Indian companies are progressing well. Large hydroelectric projects, such as Arun III (900 MW), Lower Arun (679 MW), Arun-4 (490 MW), West Seti and SR-6 (1200 MW), and Upper Karnali (900 MW), are currently being developed by Indian companies. In the past, there were criticisms regarding the sluggish progress of these projects, but they have picked up pace in the recent years. Prime Minister Dahal’s imminent India visit also comes at an exciting new development in Nepal. For the first time in history, Nepal has become energy surplus and even started exporting power to India. India has agreed to import more than 400 MW electricity from Nepal. To this end, Nepal exported power worth Rs 6bn in the summer of 2022. Likewise, there has been significant progress in the reconstruction projects after the 2015 earthquake. India extended $1bn to Nepal as part of its long-term assistance for post-earthquake reconstruction in housing, education, health, and cultural heritage sectors. The reconstruction work of over 130 hospitals/health centers, schools, and 28 cultural heritage sites in Nepal is currently underway. Since 2014, there has been a significant increase in exchange of high-level visits, which has greatly contributed to accelerating development projects. According to India’s Ministry of External Affairs, there have been 15 exchanges at the level of Head of State/Head of Government between Nepal and India since May 2014. Indian Prime Minister Narendra Modi has visited Nepal five times during his tenure, and prime ministers of Nepal have visited India eight times since Modi came to power. Modi was the first Indian prime minister to visit Nepal after 1997. His first trip to Nepal in 2014 and subsequent visits not only revived exchanges of high-level visits, but also acted as an impetus to long-pending development projects. The ties between the two countries did suffer a serious setback in the wake of the undeclared border blockade enforced by India in 2015 and the border curbs that were put in place during the Covid-19 pandemic. But these issues did not stop the bilateral mechanisms between the two countries from holding their routine meetings. Currently, there are more than 40 bilateral mechanisms between Nepal and India. It is important to continue the development partnership between the two countries, irrespective of the political leadership at the top level.

Gagan Kumar Thapa and Swarnim Wagle were on the best of terms until recently. The former considered by many the future of Nepali Congress and the latter a highly regarded economist and a scholar. Together, they formed a rudder that would propel the Nepali Congress, a party riven by factional politics, long lost and strayed from its democratic vision. For Thapa, who hopes to one day lead the Congress, Wagle was an important ally. So much so that Thapa was even willing to hand over his constituency, Kathmandu-5, to Wagle in the general election held in November last year. Over the past few years, Wagle was trying to establish himself as a national-level politician. To this end, he initially maintained good ties with Congress President Sher Bahadur Deuba and his family members. But he later switched his loyalty and joined the Shekhar Koirala camp in the party. It was during this time that Wagle became close with Thapa. In a way, they complemented each other. Both of them carried the ambition and vision to reform Nepali Congress by ending the monopoly of Deuba and his coterie. As a matter of course, ahead of the November polls, Wagle started projecting Thapa as a future prime minister and a statesman. Wagle’s dream of contesting the general election didn’t come true despite Thapa agreeing to surrender Kathmandu-5 constituency to him. Deuba was in favor of granting the election ticket to Nain Singh Mahar and not Wagle. After being denied the election ticket, Wagle began seeking a vital appointment in a key state institution, but that didn’t happen either. He quit the Nepali Congress in a rather abrupt fashion on March 30, and joined the newly formed Rastriya Swatantra Party. Soon after joining the RSP, he was named the party’s by-election candidate for Tanahun-1, the constituency vacated by President Ram Chandra Poudel after his election. Until a few days back, there was a murmur in the political circle that Thapa was poised to become the finance minister in the Maoist-led coalition government, and his trusty ally, Wagle, would become a de facto finance minister. But overnight they have turned into sworn enemies, or at least acting as such. Thapa seems hell-bent on defeating Wagle in the April 23 by-election. Addressing a by-election campaign rally on Monday, Thapa alleged Wagle of showing petty attitude with his decision to quit the party to contest the election from another party. He also criticized his former friend for joining the Nepali Congress after having held many plum jobs outside and securing a good pension scheme.  Thapa’s vitriol against Wagle didn’t go unnoticed. Many people lambasted his remarks on various social media platforms. Kul Chandra Gautam, former senior UN official wrote on Twitter: “Sad to see this uncivil split between Thapa and Wagle. Gagan’s critique of Swarnim is unwarranted and unfair. Swarnim’s critique of Nepali Congress is totally understandable. They may now be in different parties, but wish they continue to collaborate.” The rivalry between Wagle and Thapa has suddenly made the upcoming by-election more interesting, even though the poll results from the three constituencies are not going to impact the government composition or the national politics, for that matter. The by-election is taking place in Bara-2, Tanahun-1 and Chitwan-2. It is set to be a three-way competition between Nepali Congress (coalition), CPN-UML, and RSP. In the November election, the RSP emerged as the fourth largest party, posing a serious challenge to the traditional mainstream parties. And no party will have more to prove in the upcoming by-election than the RSP. Now, let’s talk about the individual constituency and why they matter. In Bara-2, as a common pick of the ruling coalition, Upendra Yadav, also chairman of Janata Samajbadi Forum, is contesting against Purushottam Poudel of the CPN-UML, Shiva Chandra Kusawaha of the Janamat Party, and Ramesh Kharel of the RSP. Winning the by-election is important for Yadav, who lost the November polls to CK Raut in Saptari-2. Raut is rallying his supporters in Bara to defeat Yadav once again. But it is a tough task, as Yadav has the support of Congress and CPN (Maoist Center) behind him. The constituency was vacated after Ram Sahay Yadav was elected the Vice President. In terms of numbers, Yadav’s prospects of winning the elections are high, but doubts linger if the vote transfers will work his way. The outcome of the general election shows that independent candidates are strong in Bara, so it will be premature to predict the winner. But come the voting day on April 23, all eyes are going to be fixed in Tanahun-1, the home constituency vacated by President Poudel, because Wagle will be fighting against the candidates of mainstream parties. President Poudel was elected from the constituency in the general election with 25,313 votes, defeating his closest rival from the UML, Ek Bahadur Rana Magar, who secured 19,925 votes. A rival candidate from the NC, Govinda Raj Joshi, had received 6,878 votes, and Bikash Sigdel of RSP had garnered 6,032. Besides Wagle of the RSP, the other candidates for Tanahun-1 are UML’s Sarbendra Khanal, a former Nepal Police chief, who had lost the general election in Kathmandu, and Govinda Bhattarai of the NC. It seems that there will be a fierce contest between NC’s Bhattarai and RSP’s Wagle in the constituency. Despite the Congress winning the general election, it is too early to call a winner in the constituency because of chronic intra-party rift in Tanahun.  President Poudel and senior Congress leader Joshi, who filed a rival candidacy in the general election, share a bad blood. There is a chance that the Joshi faction might lend tactical support to Wagle to cut the votes of NC’s Bhattarai, a former student leader. The Congress leadership knows that Tanahun-1 will be a crucial battleground, and that’s why the party has tasked its two general secretaries—Thapa and Bishwa Prakash Sharma—to lead the election campaign there. The by-election in Chitwan-2 will also be interesting, as the RSP leader, Rabi Lamichhane, will be re-contesting there, expecting a back-to-back win. Lamichhane had won from the constituency in the general election, securing a whopping 49,265 votes against his closest rival, Nepali Congress’ Umesh Shrestha, who only got 14, 983 votes. But the RSP leader lost his lawmaker status after it was revealed that he had presented an invalid citizenship certificate to contest the polls. Lamichhane not only lost his seat in the House of Representatives but also his post as the home minister in the newly formed government. Lamichhane hopes to secure another landslide win from Chitwan-2 and shut down his detractors. Although a new writ has been filed against him at the Supreme Court for holding dual passports at the same time, his supporters believe that it is a ploy to discredit him once again. Despite several controversies and allegations, Lamichhane remains a formidable candidate.