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Prime Minister KP Sharma Oli’s recent visit to China for the Shanghai Cooperation Organization (SCO) Summit and the Victory Day Parade has drawn significant attention in political and strategic circles.

Following Oli’s meeting with President Xi Jinping, China issued a news release claiming that Nepal supported the Global Security Initiative (GSI), a claim quickly dismissed by Nepali officials. Foreign Secretary Amrit Rai clarified to the media that no such agreement had been reached. 

Criticism also emerged over Oli’s participation in the Victory Day Parade, with some arguing it could upset Japan, Nepal’s long-standing development partner. However, Oli’s decision to raise the Lipulekh issue with Chinese President Xi has been well received at home. UML leaders are already seeking to capitalize on this move, framing it as a matter of “nationalism” ahead of upcoming elections.

At the SCO, Nepal expressed its willingness to become a full member, providing Oli with the opportunity to engage directly with leaders from China, Russia, India, and beyond. During the summit, Oli stated that Nepal supports the Global Governance Initiative (GGI), a new proposal by Xi. On broader security strategies such as the GSI, Nepal has reiterated its consistent position: it will not join any military or strategic alliance.

Attention is now turning to Prime Minister Oli’s upcoming visit to India, likely at the end of this month, though the trip may be delayed. As in Beijing, Oli is expected to raise the Lipulekh issue with Indian Prime Minister Narendra Modi. The timing is significant as the India-China agreement on Lipulekh pass has created a favorable environment for Oli to raise the matter with both neighbors. His handling of this issue in New Delhi will be closely watched at home.

To prevent possible misunderstandings with coalition partner Nepali Congress (NC), Oli included senior NC leader Purna Bahadur Khadka in his China delegation. As a result, NC leaders have remained largely silent on controversies surrounding the GSI and other issues. Over recent months, NC’s criticism of China has softened, reflecting a gradual rapprochement after a period of strained ties between 2015 and 2020.

Meanwhile, CPN (Maoist Center) Chair Pushpa Kamal Dahal reiterated that the border dispute with India should be resolved through diplomatic talks. 

Within Oli’s CPN-UML, preparations are underway for the party’s statute convention starting Friday. Speculation is growing over whether the party will reconsider former President Bidya Devi Bhandari’s membership. While Oli and the leadership appear unwilling to reinstate her, senior leaders like Surendra Pandey and Yubaraj Gyawali have expressed support for her return. 

In Parliament, the Rastriya Prajatantra Party (RPP) and Rastriya Swatantra Party (RSP) have continued their boycott for over 100 days, demanding a high-level panel to probe into visit visa corruption. Although the Maoist Center initially joined their protest, it later compromised with ruling parties, leaving RSP and RPP with limited leverage due to their smaller numbers.

Within the CPN (Maoist Center), senior leader Janardhan Sharma is under pressure after questioning party chairperson Dahal’s leadership. He has also been targeted by a deepfake video alleging he is working at Oli’s behest, a claim he blames on Dahal’s inner circle. Deepfakes are increasingly troubling Nepali politics: RSP Vice-chair Swarnim Wagle has also filed a case at the cyber bureau, saying he too has been victimized.

Party disputes remain unresolved within the RPP, where tensions between president Rajendra Lingden and senior leader Dhawal Shumsher Rana have delayed the party’s central committee meeting. The conflict intensified after Lingden expelled several leaders aligned with Rana.

In legislative developments, the National Assembly has finally endorsed the long-debated Federal Civil Service Bill after years of disagreements between government and opposition. Separately, Nepal’s Immigration Department has announced a new digital tracking system for foreign tourists, beginning Sept 17. Visitors staying in star hotels will be required to register their personal details via a mobile app.

Tourism numbers continue to rebound. In August 2025, Nepal welcomed 88,680 tourists—a 22 percent increase compared to last year. India topped the list with 35,505 visitors, followed by China (7,533), the US (6,068), Sri Lanka (5,956), and Bangladesh (4,262). From January to August 2025, total arrivals reached 736,562.

Another significant government move this week came in the digital sphere. The Cabinet has decided to ban social media platforms that have not registered in Nepal. According to the Ministry of Communications and Information Technology, platforms like Facebook face restrictions for failing to comply with registration requirements. 

The decision follows a Supreme Court writ of mandamus directing the regulation of such platforms. Minister Prithvi Subba Gurung’s secretariat confirmed that the ministry will now enforce the ban. Experts warn the decision could disrupt content creators and businesses, while also undermining Nepal’s broader digital aspirations.

In the financial sector, Nepal’s 10 largest commercial banks have agreed to undergo international audits, with findings to be made public—a long-standing demand of the International Monetary Fund to address bad loan practices. The Nepal Rastra Bank (NRB) will ensure an in-depth inspection of these banks.

The NRB has also introduced stricter rules on the use of CSR funds, requiring banks and financial institutions to channel them exclusively toward poverty alleviation and priority sectors.

In law enforcement, police have busted a human trafficking ring that used to smuggle Nepalis to India to sell their kidneys. The ringleader, Shyam Krishna Bhandari, and his associate have been arrested. Victims were reportedly lured from districts including Sindhupalchok, Kavre, Sindhuli, Nuwakot, and Dhading.

Finally, Nepal has achieved a new milestone in energy exports. According to Energy Minister Deepak Khadka, the country is now exporting over 1,130 MW daily to India and Bangladesh. If this trend continues, annual earnings could exceed Rs 86.38bn.

China on Wednesday held a military parade in central Beijing to mark the 80th anniversary of its victory in World War II, where Nepal’s Prime Minister KP Sharma Oli attended alongside Russian President Vladimir Putin and North Korea’s Kim Jong-un.

The parade showcased hundreds of advanced weapons and 10,000 troops, underscoring China’s growing military might. Since becoming president, Xi Jinping has taken major steps to modernize the People’s Liberation Army, the world’s largest standing army. The event drew 26 heads of state and government, high-level representatives from various countries, and leaders of international and regional organizations, with Russia, North Korea, and Pakistan prominently represented.

According to Xinhua, this was the first military parade since China embarked on its “new journey” of modernization under Xi. Beijing has set 2035 as its target year to essentially complete modernization. The parade was followed by the Shanghai Cooperation Organization (SCO) summit and Xi’s bilateral talks with Russia, North Korea, and other invitees.

China’s visible support for Russia and its partners is expected to complicate possible negotiations between Washington, Moscow, and Kyiv to end the war in Ukraine. From the SCO summit to the victory parade, Beijing succeeded in bringing together countries whose relations with the US are already strained, many of whom were targets of Donald Trump’s tariff wars. Observers say this signals the weakening of the US-led order and the rise of a China-centered alternative.

Reacting to the presence of Putin and Kim in Beijing, Trump wrote on Truth Social: “Please give my warmest regards to Vladimir Putin and Kim Jong-Un as you conspire against the United States of America.” On Aug 15, Trump and Putin had met in Alaska to discuss ending the Russia-Ukraine war, but no progress has been made since. In the same meeting, Trump also expressed interest in meeting Kim again, recalling their earlier encounters during his previous term.

China’s challenge to the US-led international system has become sharper since Trump began his second term as president. Soon after returning to the White House, Trump cut large portions of US aid to poor countries in health, education, and agriculture. Many in the Global South, facing resource gaps, have turned to China for assistance. While Beijing has not explicitly pledged to fill the void, it has gradually stepped in, drawing these countries closer.

The Trump administration believes it can handle Russia, China, and others individually, abandoning the coalition-based approach of former president Joe Biden. In practice, this has weakened US alliances. Trump has threatened to withhold security guarantees and imposed heavy tariffs even on close partners, pushing some to seek alternatives in Beijing. India, for example, once a key counterweight to China in the Indo-Pacific, was hit with a 50 percent tariff. As a result, India-US relations have nosedived, and New Delhi is now cautiously expanding trade ties with Beijing after easing border tensions.

Meanwhile, China, which is embroiled in tariff disputes with Washington since Trump’s first term, has been deepening outreach to neighboring states and Africa. Alongside its Belt and Road Initiative (BRI), it has rolled out new frameworks such as the Global Security Initiative, Global Civilizational Initiative, Global Development Initiative, and now the proposed Global Governance Initiative. These are presented as alternatives to the US-led order, seeking broader international support.

At the SCO summit, both China and Russia openly challenged the US-led order. In his address, Xi declared that the world had entered a “new period of turbulence and transformation,” adding that global governance stood at a crossroads. “History tells us that in difficult times, we must uphold peaceful coexistence, strengthen confidence in win-win cooperation, and advance in line with the trend of history,” Xi said, introducing his Global Governance Initiative as a step toward a more equitable world system and a “shared future for humanity.” Russia, for its part, has long been advocating for a new order to rival the existing one.

For Nepal, Oli’s participation in both the SCO summit and the military parade reflects deepening ties with China. During his earlier tenure, he signed a series of strategic agreements with Beijing, including a BRI framework. His latest visit will likely strengthen perceptions of him as a pro-China leader in New Delhi and Western capitals, raising questions about Nepal’s ability to maintain balanced relations with all major powers.

Domestically, Oli will face pressure to justify his presence at China’s victory parade while still upholding Nepal’s policy of neutrality and non-alignment. He took a careful step this time by including senior Nepali Congress leaders and ministers in his delegation. At the same time, his upcoming visit to India will test his ability to project balance and assure critics that Nepal is not tilting toward any single power.

Prime Minister KP Sharma Oli is all set to visit China this week to attend the Shanghai Cooperation Organization (SCO) summit, marking an important step in Nepal’s high-level diplomatic engagement with its two powerful neighbors—India and China.

This visit comes at a delicate juncture. Concerns in Kathmandu are growing over a renewed India-China agreement on trade through the disputed Lipulekh Pass. Against this backdrop, the SCO summit provides Oli not just a platform to engage with regional powers but also an opportunity to assert Nepal’s interests amid rising geopolitical complexities. Alongside attending the summit’s side events, Oli is scheduled to meet Chinese President Xi Jinping and Indian Prime Minister Narendra Modi, which will be his second and third meetings with them respectively since assuming office for the third time in July 2024.

Oli’s foreign outreach has been consistent. In December last year, he visited China to finalize a framework agreement on the Belt and Road Initiative (BRI), one of Beijing’s top priorities in its engagement with Nepal. Similarly, his talks with Modi on the sidelines of the UN General Assembly and the recent BIMSTEC meeting in Thailand highlight the frequency of high-level interactions. Yet, this week’s meetings are under particular scrutiny, as concerns over Lipulekh have resurfaced. On Aug 19,  India and China agreed to resume trade through the territory that Nepal claims as its own.

While Beijing has maintained a largely reserved stance, with Foreign Minister Wang Yi merely assuring that the India-China deal was not “targeted at any third country”, Nepal has been more vocal. Government spokesperson Prithvi Subba Gurung confirmed that Kathmandu will raise the issue directly with both Xi and Modi. Meanwhile, Chinese think tanks argue that the dispute should be settled bilaterally between Nepal and India.

The timing of this trip also underscores a shift in Oli’s priorities—from domestic politics to foreign affairs. After China, he is expected to travel to India next month and later attend the United Nations General Assembly in New York in mid-September. Adding to this momentum, Vietnam’s Vice-president visited Nepal this week, exploring new avenues of cooperation in trade, education, and tourism, a sign that Nepal is quietly broadening its international engagements beyond its immediate neighborhood.

Domestically, Oli continues to stand on firm political ground. His main coalition partner, the Nepali Congress (NC), has remained supportive, allowing him to sideline opposition voices such as the Rastriya Swatantra Party (RSP). NC General Secretary Gagan Kumar Thapa, however, has urged Oli to refrain from repeatedly claiming he will eventually hand over power to NC President Sher Bahadur Deuba—a gesture seen by many as unnecessary flattery.

Within his own party, Oli maintains an even tighter grip. The CPN-UML is preparing for a statute convention that could abolish both the 70-year age limit and the two-term leadership cap, moves widely viewed as paving the way for Oli’s indefinite leadership. At the same time, former President Bidya Devi Bhandari has re-emerged, opening a new office and holding political meetings. While Oli has downplayed her return to active politics, senior UML leaders like Ishwar Pokhrel appear supportive, whereas others such as Surendra Pandey and Yubaraj Gyawali remain cautious.

Interestingly, the Lipulekh controversy—once a dominant political issue—has lost much of its noise. Beyond the CPN (Maoist Center), RSP, and a few fringe left parties, most mainstream actors including NC and UML have chosen silence. This restraint is a stark contrast to earlier years when nationalist rhetoric dominated political discourse. Oli too has avoided inflammatory remarks, perhaps to preserve diplomatic decorum ahead of his meetings in China and India.

At the same time, the Maoist Center is preparing a nationwide campaign to strengthen its base ahead of local and national elections, though Chairperson Pushpa Kamal Dahal’s attempts to topple the government appear ineffective. His tensions with senior leader Janardhan Sharma also persist.

Meanwhile, developments within Parliament continue. Ishwari Neupane of the NC has been elected chair of the State Affairs and Good Governance Committee, following the resignation of Ram Hari Khatiwada over his alleged involvement in document tampering related to cooling-off period provision in the Federal Civil Service Bill.

Outside Parliament, public discontent remains visible. Teachers have returned to the streets demanding better job security, pensions, and reforms in the education bill. The passage of the bill has been delayed due to disputes between NC and UML. 

Adding to these domestic challenges, sugarcane farmers have reignited their agitation over delayed subsidies and unpaid dues from mills. Beginning Aug 24, farmers from the Tarai staged a sit-in at Maitighar Mandala in Kathmandu, demanding full payment of a long-promised Rs 70 per quintal subsidy—half of which was recently slashed to Rs 35 due to budget shortages. They are also pushing for fairer valuation, removal of VAT, and inclusion in price-setting decisions.

Beyond politics and protests, policy issues continue to surface. After last year’s rhino census was postponed due to lack of funds, Nepal will this year conduct both rhino and tiger counts with support from the Department of National Parks and Wildlife Conservation. On the agricultural front, paddy planting remains incomplete even as August draws to a close. Of the 1,376,466 hectares suitable for cultivation, 1,306,293 hectares (about 94 percent) have been planted, leaving 70,176 hectares still fallow.

Public health concerns are also mounting. The National Public Health Laboratory has confirmed cholera cases in Birgunj, with eight of ten tested samples returning positive. The Birgunj Metropolitan Health Division reported that 171 patients suffering from cholera and diarrhea have been treated and discharged, though results from two pending samples are awaited.

Finally, in a culturally significant ruling, the Supreme Court has declared that naked Hindu ascetics, known as Naga sadhus, are not obliged to wear clothes when visiting temples. The court affirmed that their centuries-old tradition of nudity is not obscenity, a decision warmly welcomed by the ash-smeared, dreadlocked devotees of Lord Shiva.

Prime Minister KP Sharma Oli is travelling to China to attend the Shanghai Cooperation Organization (SCO) Summit, an intergovernmental regional body founded in 2001 in Shanghai. Nepal, currently a dialogue partner, will participate in the summit scheduled for Aug 31–Sept 1 in Tianjin, China.

On the sidelines, Oli is expected to hold bilateral meetings with SCO leaders, including Chinese President Xi Jinping and Indian Prime Minister Narendra Modi. This year’s SCO summit brings together Modi, Xi, and Russian President Vladimir Putin at a time when US-India ties have soured over tariffs imposed by US President Donald Trump. Western countries will be closely watching as three major non-Western powers meet to discuss bilateral, regional, and global issues.

For Oli, however, the Lipulekh dispute is likely to dominate his agenda. India and China recently agreed to resume trade through the Lipulekh pass, a territory disputed between Nepal and India, placing Oli under pressure to raise the issue with both leaders. Although Nepal is reported to have sent diplomatic notes to New Delhi and Beijing expressing its displeasure, the government has not made any official statement, and Oli himself has remained silent on the matter.

Beyond the dispute, Nepal is lobbying to upgrade its status from dialogue partner to full SCO membership. At a time when both SAARC and BIMSTEC are becoming ineffective, SCO could be a new regional platform to advance its voices in the global arena. Government sources suggest the summit may decide on granting membership to Nepal and other applicants. Full membership would allow Nepal to deepen cooperation in trade, transit, energy, agriculture, investment, security, and cultural exchanges with SCO members. 

Nepal became a dialogue partner in March 2016 after signing an MoU with the SCO Secretariat, nearly a decade after applying for the status in 2007. According to the Ministry of Foreign Affairs, the MoU defines scope of Nepal’s engagement with SCO in the field of trade, transit and investment, energy, agriculture, small and medium business, security issues, and legal and custom affairs, among others. Since 2016, Nepal has participated in multiple SCO meetings, including a briefing for dialogue partners in April this year attended by Nepal’s embassy representatives.

The Tianjin summit, expected to be the largest in SCO’s history, will host leaders from over 20 countries and 10 international organizations. According to Xinhua, the summit will issue declarations marking the 80th anniversary of the UN and the victory in the World Anti-Fascist War, and adopt outcome documents on security, economic cooperation, and cultural exchange.

The SCO traces its roots to the 1996 “Shanghai Five” mechanism, when China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan sought to resolve border security issues after the Cold War. Over the past two decades, trade among SCO members has grown nearly 100-fold, with their share of global trade rising from 5.4 percent in 2001 to 17.5 percent in 2020.

This year’s attendees include Russian President Putin, Belarusian President Alexander Lukashenko, Indian Prime Minister Modi, Iranian President Masoud Peseshkian, Kazakh President Kassym-Jomart Tokayev, Kyrgyz President Sadyr Japarov, Pakistani Prime Minister Shahbaz Sharif, Tajik President Emomali Rahmon, Uzbek President Shavkat Mirziyoyev, and Mongolian President Ukhnaagiin Khurelsukh.

Also attending are Azerbaijan’s President Ilham Aliyev, Armenian Prime Minister Nikol Pashinyan, Cambodian Prime Minister Hun Manet, Maldivian President Mohamed Muizzou, Nepali Prime Minister KP Sharma Oli, Turkish President Recep Tayyip Erdogan, Egyptian Prime Minister Mostafa Madbouly, Turkmen President Serdar Berdymuhamedov, Indonesian President Prabowo Subianto, Lao President Thongloun Sisoulith, Malaysian Prime Minister Anwar Ibrahim, and Vietnamese Prime Minister Pham Minh Chinh.

Currently, the SCO has 10 full members—Belarus, India, Iran, Kazakhstan, Kyrgyzstan, China, Pakistan, Russia, Tajikistan, and Uzbekistan. Afghanistan and Mongolia hold observer status, while 14 countries, including Nepal, are dialogue partners.

According to the Ministry of Foreign Affairs, Oli will also take part in the commemoration of the 80th anniversary of the victory of the Chinese People’s war on resistance against Japanese aggression and world anti-fascist war. PM Oli will address the SCO plus Summit in Tianjin on 1 September. Oli will also meet Chinese Prime Minister Han Zheng and vice president on September 2. Nepali Congress leader Purna Bahadur Khadka and some ministers are accompanying PM Oli. 

It has been nearly six decades since the UN General Assembly adopted the International Covenant on Civil and Political Rights popularly known as ICCPR. Article 19 of ICCPR states: “Everyone shall have the right to freedom of expression; this right shall include freedom to seek, receive and impart information and ideas of all kinds, regardless of frontiers, either orally, in writing or in print, in form of art, or through any other media of his choice.”

In Nepal’s case, the 1990 constitution, for the first time, recognized citizens’ right to demand information held by public agencies on matters of public importance. Actually, Nepal was ahead of other South Asian countries when it came to providing constitutional guarantee to Right to Information. Now, other South Asian countries are making a huge progress on RTI but Nepal is lagging behind. In Nepal, progressive constitutional provision remained largely unimplemented in the absence of a supportive law. Successive governments after 1990 did not pay any attention to formulate such legislation due to a lack of awareness about its importance for the effective functioning of the democracy.

The 2015 constitution further strengthened this right, stating that every citizen shall have the right to demand and receive information on any matter of personal and public interest, with exception of information legally designated as confidential. To support these constitutional guarantees, the Right to Information Act was enacted on 21 July 21 followed by the National Information Commission in 2009. Nepal now has both legal and institutional frameworks to protect people’s right to information. Yet, in practice, progress has been limited.

Government and non-governmental agencies, particularly the National Information Commission, have been active in raising awareness about the importance of RTI for democracy. Numerous training and seminars have been conducted, mainly targeting government officials. While these efforts have raised some awareness, they are often repetitive and ineffective. Nonetheless, journalists and activists have increasingly used RTI as a tool to expose corruption, which is a positive development.

The tendency to seek information from government bodies has grown, but it remains largely confined to activists and has yet to spread widely among ordinary citizens. Serious challenges continue to hinder effective implementation of the law. The most fundamental issue is the persistent failure to instill in political leaders and government officials that people have a right, not a privilege, to access information of public importance.  Political leaders rarely encourage transparency; instead, they often side with bureaucrats in suppressing information. In many cases, leaders have even instructed agencies to withhold information rather than disclose it.

There still is a mindset among the politicians and bureaucracy that granting or denying access to information is at their discretion. In reality, the law has clearly stated what type of information may be withheld. This includes information that jeopardizes sovereignty, integrity, national security, public peace and stability, or that interferes with criminal investigation, inquiry and prosecution, or sensitive economic, trade and monetary matters. Beyond these exceptions, government agencies are obligated to provide information without restrictions. Instead of adhering to the law, many government agencies impose unnecessary conditions with the deliberate intent of suppressing information. Politicians and officials alike fear that if full disclosure were made, their corruption and irregularities would be exposed.

As per the law, every public office should appoint an information officer. While such officers do exist in government offices, they are rarely empowered. Most lack access to the information they are meant to provide, leaving people empty-handed when they make requests. On paper, government agencies appear to comply with proactive disclosure requirements by publishing reports every three months. In reality, these documents do not reveal anything about actual activities. They are often little more than recycled introductions and lists of duties and responsibilities; reprinted again and again to create the illusion of transparency.

The National Information Commission cannot remain satisfied with this surface-level compliance. Its focus must go beyond repetitive training seasons for government officials. Instead, it should actively monitor the information that government agencies are making public and investigate misleading practices and demand that agencies change their current approach to proactive disclosure. The priority in earlier years was to ensure that agencies appointed information officers and began publishing regular reports. That phase has passed. Now, the challenge is to push for meaningful disclosure of substantive information. The government offices should stop reprinting empty profiles again and again, taking both the public and the Commission for granted.

Another vital component is that people are not aware about the importance of their rights and responsibilities of the government agencies. While publicity campaigns have informed people that an RTI law exists, very few people understand its details and how to use it effectively. Knowledge remains confined to a small circle of political leaders, activists and professionals working in the field. Even students do not have comprehensive knowledge about RTI even though RTI has been incorporated in the school and university curricula. Students know about the RTI only from a narrow examination perspective, with little understanding of its practical application.

The National Information Commission, which is tasked with ensuring implementation of this law, should change its working style. Going beyond its routine seminar and lectures, it should identify bottlenecks and directly confront agencies that are misleading the public by publishing background information while concealing what truly matters. As a journalist, I often visit the websites of government agencies to read their proactive disclosure documents to find new information about works accomplished by them. But they always disappoint me. The format provided by the National Information Commission for the proactive disclosure, which is focused on background and general information rather than the substantive information, itself is problematic. Similarly, it should explain why government agencies are not empowering the information officers to provide the information. Similarly, it should find out why two decades of awareness campaigns have failed to build genuine public understanding. It should study new ways to disseminate the information in the ever-changing information ecosystem.

In conclusion, politicians and government agencies have yet to internalize that the right to information is a cornerstone of democracy. Now, we have to move on to phase two of the implementation of RTI—one that ensures not just the existence of laws and institutions but their effective use as well. Most importantly, people must be able to seek information without fear.

At present, many hesitate to approach officials for information, worried that they might be targeted if they do so. With corruption at unprecedented levels, especially at the local level where political leaders and bureaucrats are often complicit, the culture of opacity still persists. Breaking this cycle will require stronger enforcement, fearless oversight and a genuine political commitment.

Ahead of Prime Minister KP Sharma Oli’s expected visit to New Delhi, the long-standing border dispute between Nepal and India has resurfaced. The controversy follows the recent India-China agreement to resume trade through the Lipulek pass, a territory disputed between Nepal and India. In 2020, Nepal amended its constitution to incorporate Kalapani, Lipulekh, and Limiyadhura within its official map. The government has formally objected to the India-China agreement, while India maintains that border trade through Lipulekh has been ongoing since 1954.

This development puts pressure on Prime Minister Oli, as political parties are urging him to raise the issue during his upcoming India visit. Leaders from the ruling Nepali Congress have already made public statements pressing PM Oli to act. Although both sides have previously agreed that boundary issues should be resolved through diplomatic talks, little progress has been made, and the dispute remains one of the most complex in bilateral relations. For now, China has not responded to Nepal’s objection. 

Meanwhile, Nepali Ambassador to China Krishna Prasad Oli met with Liu Jinson, director-general of the Department of Asian Affairs of Chinese Foreign Ministry. It is unclear whether two sides discussed this issue. The Chinese readout states that both sides had friendly and in-depth exchanges of views on China-Nepal relations and cooperation projects.  Interestingly, Oli will also travel to China later this month to attend the SCO meeting as an observer. Lawmakers have raised this issue in the Parliament, asking the government to take up this issue with New Delhi and Beijing. 

Meanwhile, India-China relations appear to be warming after both countries signed a series of agreements this week, a notable shift since the Galwan Valley clash in 2020. Western nations, particularly the US, are watching these regional dynamics closely, especially as US-China and India-U.S ties remain strained over trade and tariffs.

Indian Foreign Secretary Vikram Misri visited Nepal recently to extend an official invitation to Prime Minister Oli for his India visit. During his stay, Misri met a wide range of political leaders and discussed bilateral issues. While it is now confirmed that Oli has accepted the invitation, the two governments have yet to finalize the date. 

Turning to domestic politics, the Rastriya Swatantra Party (RSP) and Rastriya Prajatantra Party (RPP) have been boycotting Parliament, demanding a probe into the recent visa scam. However, the tables may be turning. 

The ruling coalition is preparing to impeach Deputy Speaker Indira Rana Magar over her alleged role in writing a letter to the American Embassy recommending visas. Observers see this move as a pressure tactic against the RSP, forcing the party to soften its stance. If the RSP refuses to compromise, its deputy speaker may face impeachment. A section of the Nepali Congress, led by Shekhar Koirala and Gagan Thapa, has criticized the ruling coalition’s move, calling it an abuse of the parliamentary majority.

Meanwhile, former President Bidya Devi Bhandari has refused to step back from active politics. She continues to insist that her party membership, held for forty years, cannot be revoked. Recently, she visited the party office in Biratnagar and met with supporters despite a directive banning such activity. She has now opened an office in Kathmandu to run her political work more systematically. Prime Minister Oli, however, has remained silent on her actions. Notably, in the party’s recent Central Committee meeting, leaders Surendra Pandey and Yubaraj Gyawali voiced their dissent against the decision to strip Bhandari of her membership, criticizing the leadership for avoiding the issue in official party documents.

On another front, teachers are once again on the streets after the government failed to fulfill its promises. The ruling coalition had pledged to pass the Education Bill to address their demands, but the legislation has stalled. With protests growing, the government faces increasing pressure to act quickly.

In the opposition camp, CPN (Maoist Center) Chairman Pushpa Kamal Dahal continues to project himself as central to national politics. Speaking at a recent program, he claimed that even while in opposition he has shouldered the “sole responsibility” of national politics, warning that the country’s situation could deteriorate if he were to withdraw from that role.

In legal developments, the Supreme Court has issued a mandamus order to proceed with an investigation against Janata Samajbadi Party Chairman Upendra Yadav for his alleged involvement in the 2007 Gaur massacre. In that clash, 27 cadres of the then CPN (Maoist) were killed in violence with members of the Madhesi Janadhikar Forum Nepal. The ruling comes just weeks after Yadav exited the government, and he has since been sharply critical of the ruling coalition.

On the international stage, Nepal took an important step by ratifying the WTO Agreement on Fisheries Subsidies. On Aug 18, WTO Director-General Ngozi Okonjo-Iweala received Nepal’s instrument of acceptance from Ambassador Ram Prasad Subedi. Only three more ratifications are needed for the agreement to take effect. Okonjo-Iweala praised Nepal’s leadership, calling its move significant for both landlocked and least-developed countries.

In public health, the World Health Organization confirmed that Nepal has eliminated rubella as a public health problem. The achievement reflects years of immunization campaigns and strengthened disease surveillance. While rubella is usually mild in children, it can cause severe complications in pregnancy, making this milestone particularly important.

In technology, Communication and Information Technology Minister Prithvi Subba Gurung announced that 5G services will be launched in Kathmandu and Pokhara by January 2026. He added that the government is working to improve internet quality nationwide under the Digital Nepal initiative.

Finally, the Nepali Army and China’s People’s Liberation Army will hold the fifth edition of the Sagarmatha Friendship joint military exercise in Nepal from Sept 6. The 10-day exercise will focus on counter-terrorism, combat tactics, and disaster management, underscoring deepening military ties between the two neighbors.

India and China have emphasized the importance of maintaining peace and tranquility in the border areas as a foundation for strengthening their overall bilateral relationship. A statement issued after the 24th round of the Special Representatives’ Dialogue on the Boundary Question said that the two countries agreed to establish an expert group under the working mechanism for consultation and coordination on border issues. This group will explore “early harvest” measures in boundary delimitation in the disputed areas.

They also agreed to form a working group to improve border management and maintain stability along the frontier. Both sides will use existing diplomatic and military mechanisms to carry forward the process of border management and discuss steps toward de-escalation, starting with principles and modalities.

These agreements underscore efforts to normalize relations that had been severely strained since the Galwan Valley clash in 2020. If the peace-building measures move forward as planned, India-China ties could see significant improvement, creating new dynamics in the Indo-Pacific region.

 India and China decided to reopen border trade through three designated trading points, Lipulekh Pass, Shipki La Pass, and Nathu La Pass.   

Issuing a press statement, a spokesperson at Nepal’s Ministry of Foreign Affairs said that the constitution of Nepal has already incorporated Nepal’s official map, which clearly establishes that Limpuyadhura, Lipulekh and Kalapani, located to the east of the Mahakali River, are integral parts of Nepal. The Nepal government has objected to any activities in the area, reminding both countries that the Kalapani region is an integral part of Nepal.

Similarly, India has said that its position on the matter is consistent and clear.  Border trade between India and China through Lipulekh pass commenced in 1954 and has been going on for decades. This trade had been disrupted in recent years due to Covid and other developments, and both sides have now agreed to resume it, India said in a statement.  As regards territorial claims, our position remains that such claims are neither justified nor based on historical facts and evidence. Any unilateral artificial enlargement of territorial claims is untenable, the statement issued by India reads.

In 2015, during Indian Prime Minister Narendra Modi’s visit to China, two sides had agreed to hold negotiation on augmenting the list of traded commodities, and expand border trade Nathu La, Qiangla/Lipu-Lekh Pass and Shipki La. At that time, Nepal had protested the India-China agreement sending a protest letter to both countries.
Indian Prime Minister Narendra Modi is visiting China after six years to attend the Shanghai Cooperation Organization (SCO) summit in Tianjin. India and China also discussed a wide range of issues linked to the BRICS Summit. BRICS nations are considering the creation of a common currency, a proposal that has drawn criticism from US President Donald Trump. India and China agreed to support each other in hosting major diplomatic events: India will host the 2026 BRICS Summit, while China will host in 2027. This provides new opportunities for bilateral and regional engagement.

The two sides also agreed to resume direct flight connectivity between the Chinese mainland and India, suspended during the Covid-19 pandemic and not restarted due to strained ties. They will also finalize an updated air service agreement. The Kailash Manasarovar Yatra has already resumed, and beginning next year, the scale of Indian pilgrimages is expected to increase.

In addition, both sides pledged to take concrete measures to facilitate trade and investment flows, jointly maintain peace in the border areas through friendly consultations, and uphold multilateralism. They agreed to enhance coordination on major international and regional issues, maintain a rules-based multilateral trading system with the WTO at its core, and promote a multipolar world that safeguards the interests of developing countries, according to the statement.

After the Doklam crisis, Modi and Chinese President Xi Jinping held two informal summits—the first in Wuhan in April 2018, and the second in Chennai in Oct 2019—which significantly helped improve ties. In 2018, China had proposed a “two plus one” model, under which India and China would consult or cooperate on development projects in South Asian countries. That idea, however, faded amid worsening bilateral ties.

Chinese Foreign Minister Wang Yi noted that since the beginning of this year, bilateral relations have moved onto a path of steady development and the boundary situation has continued to stabilize. He added that China attaches great importance to Prime Minister Modi’s visit to attend the SCO Tianjin Summit and looks forward to India’s active contribution to its success.

Following the completion of the United States’ foreign aid review under the Donald Trump administration, the Millennium Challenge Corporation (MCC) Nepal Compact has resumed work with “renewed momentum and shared commitment from both sides.”

This week, MCA Nepal signed two major contracts to advance its electricity transmission line projects. Deputy Vice-president of MCC John Wingle, who is currently visiting Nepal, has been in talks with government officials to address technical challenges, primarily related to land acquisition and forest clearance. These issues have slowed progress on transmission construction. Despite significant cuts to US foreign assistance, the Trump administration decided to continue MCC projects in Nepal, framing MCC support not as aid, but as an ‘investment to promote business growth and stability worldwide.’

In signing these contracts, Wingle reaffirmed the US commitment to shared priorities and Nepal’s development goals. “We are honored to work alongside our Nepali counterparts to improve the availability and reliability of electricity in Nepal and enhance regional power trade and integration.” From 2018 to 2022, MCC projects deeply polarized Nepali society, facing both strong support and open opposition, notably from China. Under the agreement, MCC projects must be completed within five years, but two years have already passed. Delays from the American side have raised the likelihood of deadline extensions.

In domestic politics, the Election Commission has decided that Ranjita Shrestha will remain chairperson of the Nagarik Unmukti Party, despite claims from rival leaders that she had been removed. The Commission said the rival faction failed to follow proper procedures to change the leadership. The party, founded by Resham Chaudhary, has been in turmoil over internal disputes. It has announced plans to withdraw support for the government but has yet to formally notify officials due to the ongoing feud.

Similarly, tensions within the Rastriya Prajatantra Party (RPP) escalated this week. On Aug 13, a clash broke out in Kathmandu between supporters of party chair Rajendra Lingden and those of his rival, Dhawal Shumsher Rana. The Rana faction has been openly criticizing Lingden ahead of the party’s upcoming general convention and is reportedly creating parallel structures nationwide, deepening internal divisions. Earlier this year, the RPP organized protests in Kathmandu and other districts calling for the restoration of monarchy.

The CPN (Unified Socialist) also faced internal strife after former Prime Minister Jhala Nath Khanal declared that the party’s split was a mistake and urged Chairman Madhav Kumar Nepal to step down. Following discussions, both leaders have agreed to minimize their differences and refrain from public criticism in line with party statutes.

Meanwhile, Rastriya Swatantra Party (RSP) Chairman Rabi Lamichhane’s attempt to secure release from judicial custody failed after the court denied bail. In his absence, the party remains embroiled in controversy and continues to obstruct Parliament over the visit visa scam. Lamichhane has requested to be transferred to Kathmandu, but the government has not acted despite a court clearance.

Inside the Nepali Congress (NC), efforts are underway to unseat Sher Bahadur Deuba as parliamentary party leader, led by Shekhar Koirala and Gagan Kumar Thapa. However, they lack the sufficient number of lawmakers supporting the proposition. This week, Prime Minister KP Sharma Oli said a senior NC leader privately confirmed the shortfall and reiterated his belief that the current coalition will continue until the 2027 national elections.

The NC has, however, resolved a dispute in Bagmati Province. Chief Minister Indra Bahadur Baniya secured a confidence vote after Deuba persuaded Bahadur Singh Lama to support him, reportedly promising ministerial positions to Lama’s allies.

Former President Bidya Devi Bhandari has continued low-profile political activities despite her party rescinding her membership. Reports suggest she is preparing to open a contact office to formalize her engagements. For years, she has used the Madan Bhandari Foundation as a platform, which prompted Prime Minister Oli to criticize its activities this week. Many leaders once close to Bhandari are now distancing themselves, fearing disciplinary action.

The CPN-UML is preparing for its statute convention, where key outcomes are already expected — no 70-year age limit and no two-term leadership cap. Next year’s leadership selection convention is anticipated to endorse Oli’s continuation. Party leaders have compared Oli’s leadership ambitions to those of India’s Narendra Modi and China’s Xi Jinping.

In the CPN (Maoist Center), Chairperson Pushpa Kamal Dahal indicated no imminent change in government, saying there were no plans to form or join a new coalition. Prime Minister Oli suggested Dahal made the statement after failing to alter the current alliance.

Beyond party politics, Ramhari Khatiwada, chair of the State Affairs and Good Governance Committee of Parliament, resigned this week, stating he had always served as an honest representative. He told the House session on Tuesday that he returned his official vehicle and benefits the day an error in the Civil Service Bill’s “cooling-off period” provision came to light.

Prominent Madhesi leader Anil Kumar Jha left the Loktantrik Samajbadi Party led by Mahanta Thakur and revived the Nepal Sadbhawana Party. In a separate development, the Nepal government endorsed the country’s first National Artificial Intelligence Policy (2025). The US, India and China have expressed interest in supporting Nepal’s AI initiatives, though governance frameworks are still being developed.

In the Madhes Province, monsoon rains have finally arrived, ending a prolonged drought and accelerating paddy transplantation. According to the Ministry of Agriculture and Livestock Development, planting has been completed on 77 percent of paddy fields in eight districts and could reach 80 percent this year. Officials warn, however, that delayed planting may reduce productivity.

Nepal has also waived climbing fees for 97 lesser-known mountains, ranging from 5,870 to 7,132 meters, located in Karnali and Sudurpaschim provinces. The move aims to attract climbers to new destinations, boost local economies and diversify Nepal’s mountaineering offerings.