Submit your Article

Two-thirds of the House of Representatives members now support the agreement between the Nepali Congress (NC) and the CPN-UML to form a national unity government, though the specifics of the agreement remain undisclosed. Prime Minister Pushpa Kamal Dahal’s major coalition partners, the CPN-UML and other smaller parties, have withdrawn their support, leaving his government in the minority.

This situation puts pressure on Dahal to resign, which is being pushed by his own party and other political factions. However, Dahal has decided to seek a vote of confidence on July 12. According to cross-party leaders, Dahal is offering the premiership to NC President Sher Bahadur Deuba to disrupt the NC-UML agreement. He has indicated that the Maoists are willing to support Deuba for a full term until the next elections in 2027. This offer was made the day after Deuba and UML leader Oli signed their agreement, but Deuba dismissed it.

Despite Deuba’s rejection, Dahal continues to reach out to NC leaders. Two days ago, he invited senior NC leader Shekhar Koirala to his residence for discussions. Koirala attended the meeting with the consent of Deuba. Sources say Koirala told Dahal that reversing the current situation is almost impossible. Even senior leaders within Dahal’s own CPN (Maoist Center) are advising him to resign, but Dahal insists there is still room for political maneuvering. After the NC-UML agreement, the Rastriya Swatantra Party decided to leave the government, but Dahal asked them to stay until the confidence vote.

There is some dissatisfaction within NC and UML ranks regarding the opaque agreement between Oli and Deuba, but no leader has openly criticized it. Both parties have unanimously endorsed the agreement. NC leaders believe Dahal’s efforts to form an alliance with UML are unlikely to succeed, despite his attempts. Some ambiguous provisions in the agreement might be exploited to prevent Oli from becoming prime minister, but it is almost certain that Oli will ascend to the position under Article 76(2) of the Constitution, which mandates a coalition government since no single party has a majority under Article 76(1).

Dahal and his allied constitutional experts argue that if Dahal’s government, formed under Article 76(2), fails to secure a vote of confidence, the President should initiate government formation under Article 76(3). This would mean appointing the parliamentary party leader of the largest party, likely Deuba. Neutral constitutional experts, however, assert that the government formation process should start under Article 76(2) again after July 12. If the government is formed under either Article 76(2) or 76(3), it is likely to face legal challenges, much like the 2021 Supreme Court verdict on Oli's dissolution of the House before its term ended. The verdict emphasized that all provisions of Article 76 should be tested to form a government.

The unexpected agreement between NC and UML has left Dahal, who had maintained power by striking a balance between NC and UML, in shock. He was confident that the rival NC and UML would not join forces. Additionally, Maoist leaders believed external forces would prevent Oli from coming to power. Dahal had been frequently changing coalition partners and was recently preparing to align with NC leaders again in the guise of forming a national unity government.

NC and UML were growing weary of Dahal's tactics, and there had been long-standing support within both parties for a coalition. The deteriorating economic conditions, frequent government changes, growing communal tensions and problematic constitutional provisions compelled the first and second largest parties to unite to address the country's challenges. The rise of new political parties also gave impetus to this unconventional alliance.

In this context, Dahal’s attempts to reverse the situation are unlikely to succeed. NC leaders state that Deuba is not willing to accept Dahal’s offer of the premiership. After nearly a decade, NC and UML are joining forces again, reminiscent of their successful collaboration in 2014 to deliver the Constitution in 2015. Now, they aim to form a strong government to resolve the current problems facing the country.

Dear readers,

This week, the political landscape was dominated by a crucial agreement between the Nepali Congress (NC) and CPN-UML. These two parties have pledged to ensure much-needed political stability and to amend the 2015 Constitution to address certain “flawed provisions.” We covered this agreement from multiple angles, including a long-form article titled “The Story Behind the Formation of a New Coalition,” which explains how and why the two parties came together. We appreciate our readers’ enthusiastic response to this story. Additionally, we published a commentary titled “Can the NC-UML Alliance Bring Stability?” which questions the longevity of the to be formed government, given the parties’ past difficulties in working together.

The full text of the agreement signed by NC leader Sher Bahadur Deuba and CPN-UML leader KP Sharma Oli has not yet been made public. With the UML pulling out its support, the Pushpa Kamal Dahal government has been relegated to the minority, but he is refusing to step down. Dahal may use constitutional provisions that allow him to face parliament within 30 days. 

Meanwhile, there are widespread concerns about the contents of the proposed constitutional amendments by NC and UML, particularly among Madhes-based parties and other groups advocating for identity politics. There are also questions about which external forces may be influencing these political developments. Speculations abound, but no definitive answers are available. Rumors suggest that Dahal’s refusal to resign might be influenced by external advice, allowing time for preparations to continue the current coalition with Deuba as prime minister. Attempts to find clues in Indian and Chinese media were inconclusive.

The agreement between Deuba and Oli has been endorsed by both parties, but it has caused some dissatisfaction as well. NC General Secretary Gagan Kumar Thapa was initially opposed but has since accepted the agreement. Similarly, there are reservations within UML, but both Deuba and Oli have a strong grip on their parties, making significant disruptions unlikely.

In another development, the Rastriya Swatantra Party (RSP), which emerged from the 2022 national election, is facing an internal crisis. Party Chairman Rabi Lamichhane and General Secretary Mukul Dhakal are at odds, with Lamichhane expelling Dhakal for allegedly violating party discipline. Dhakal’s symbolic protest at a party meeting, where he taped his mouth to give a message that there is no freedom of expression in the party, highlights the issue of intra-party democracy, a common issue in all political parties of Nepal.

Now onto some positives. Despite these political challenges, there has been progress in concluding the transitional justice process. The NC, UML, and the Maoist Center have formed a cross-party mechanism to address remaining contentious issues of the constitution. This team consisting of Ramedh Lekhak from NC, Mahesh Bartaula from UML, and Janardhan Sharma from the Maoist party has already started its work. The transitional justice process, initiated on the basis of the Comprehensive Peace Agreement, 2006, remains incomplete, but there are plans to endorse an amendment bill in the ongoing Parliament. However, new political developments could delay this process further.

China’s Belt and Road Initiative (BRI) continued to draw attention this week. Congress leaders reiterated their position against taking loans under the BRI, which does not offer grant provisions. Additionally, Parliament has formed panels to investigate alleged corruption in the construction of Pokhara and Bhairahawa International Airports. Meanwhile, the Nepal government has published a concept note on the use of Artificial Intelligence (AI) and needs to accelerate efforts to regulate AI, a topic that still lacks widespread understanding in Nepal.

This week, the infamous fake Bhutanese refugee scandal once again made national headlines with the arrest of Bechain Jha and Pratik Thapa, the son of former home minister Ram Bahadur Thapa. This marks a significant step in the investigation involving former ministers, their relatives and senior government officials. Cooperative scandals also made headlines this week, with police arresting many cooperative owners based on public complaints. A probe panel has been set up to investigate these cases. Home Minister Lamichhane has assured to investigate all past high-profile corruption cases. But the latest political alliance between NC and UML means Lamichhane’s days as home minister are numbered.

This week, CPN (Unified Socialist) led by former prime minister Madhav Kumar Nepal held its generation convention. The convention unanimously elected Nepal as party chairman and Ghana Shyam Bhushal as general secretary. The same set of leaders have returned as party office-bearers. Bhushal’s attempt to displace Nepal has turned futile. The NC-UML agreement at the center has started to impact the provincial government. For instance, UML has withdrawn the support to the Sudurpaschim government. 

I will be back with more updates next week. Wishing you all a happy weekend!

The Nepali Congress (NC) and CPN-UML have signed an agreement to amend the constitution adopted in 2015, aiming to address the nation's current crises. Achieving these ambitious goals requires substantial unity, maturity, and understanding between the parties. Leaders from both NC and UML assert that the parties have committed to cooperation at least until the next elections in 2027.

However, the critical question remains: Can these two parties maintain harmony in government? This concern arises from their historical track record. For example, in 2018, the UML and Maoist Center merged to form a new party and government, promising political stability and development. Yet, internal conflicts among top leaders—KP Sharma Oli and Pushpa Kamal Dahal—led to the collapse of both the government and the party, plunging the country into renewed instability.  Similarly, NC and UML failed to collaborate effectively after the 2015 constitution amendment.

The current agreement is the result of at least three months of back-channel negotiations between UML Chairperson Oli and NC President Sher Bahadur Deuba, along with key facilitators. The agreement was kept secret until Monday. Oli and Deuba initially favored an additional month for thorough preparations, but a leak of the agreement necessitated prompt decisions, hence their cautious approach to forming the government.

The primary task of the new coalition government will be the critical and complex constitution amendment. This requires consensus among the major parties that supported the 2015 constitution drafting process. Consequently, NC and UML are focusing on forming a national unity government. A leader involved in the negotiations stated: “The two parties plan to amend several provisions in phases, starting with changes to the electoral system, followed by other issues.”

The NC-UML alliance also aims to counter challenges from emerging parties like the Rastriya Swatantra Party and independent candidates such as Kathmandu's Mayor Balendra Shah. Although NC and UML are principal competitors, they view these new parties as a common threat to their voter bases. 

To address these challenges, the new NC-UML coalition must tackle corruption, ensure good governance, create jobs, and initiate plans for economic recovery. Failure to address these issues will likely provoke a backlash against the coalition government. Following the agreement, both parties have expedited the process of forming a new government, with formal endorsements from their respective parties, and are now waiting for Prime Minister Dahal’s resignation. 

In the absence of a single-party majority, the government formation process will proceed under Article 76(2) of the constitution, which allows for a coalition government. NC and UML have urged Dahal to resign to facilitate the formation of a national unity government. Although they have signed a document focusing on government formation and constitutional amendments, it has not yet been made public. On Wednesday, NC endorsed the agreements, although party leaders have not yet reviewed the document.

NC has also urged Prime Minister Dahal to resign promptly. The party argues that since more than two-thirds of Parliament members oppose him, Dahal should step down on moral and political grounds. However, Dahal cites the constitutional provision granting him 30 days to seek a vote of confidence after a coalition member withdraws support. According to the agreement between NC and UML, Oli will be appointed as prime minister under Article 76(2) of the constitution. Given the agreement to form a national unity government, NC insists it is imperative for Dahal to step aside.

To achieve their objectives, NC and UML must garner broader support from other parties. By Wednesday, the Rastriya Prajatantra Party and the Mahantha Thakur-led Loktantrik Samajbadi Party had pledged their support for the NC-UML coalition. The coalition's base is expected to expand with additional parties joining the alliance.

Key contents of the agreement between NC and UML

• Promoting national interest
• Taming corruption to maintain good governance
• Maintaining political stability
• Amendment the constitution after a thorough review
• Strengthening economy
• Rotational leadership between Oli and Deuba 

UML withdraws support to government

CPN-UML has officially withdrawn its support to the government, effectively rendering the Dahal-led government into a minority. UML leader Mahesh Bartaula said: “We gave Prime Minister Dahal the opportunity to pave the way for the formation of a national government, but he didn’t do so. Hence we have decided to withdraw the support.” With the UML, the major coalition partner in the Dahal government, pulling out its support, Prime Minister Dahal now has two options: Resign on moral grounds or to take a vote of confidence. Dahal has maintained that he will go for a floor test in Parliament.

The Nepali Congress and CPN-UML, the first and second largest parties in Parliament, have agreed to form a national unity government. This coalition aims to amend the constitution adopted in 2015. 

According to the agreement, UML chair KP Sharma Oli will lead the government initially to push for constitutional amendments and then hand over power to NC leader Sher Bahadur Deuba to conduct the 2027 elections. Cross-party leaders acknowledge that amending key provisions of the constitution will be challenging. The NC-UML alliance anticipates strong opposition from the CPN (Maoist Center), Madhes-based parties, and other groups that support federalism, secularism, and identity-based federalism.

The new alliance needs to muster a two-thirds majority in Parliament for any constitutional amendment which seems feasible. The tentative agreement between NC and UML includes changes to the current electoral system, which many believe is one of the main causes of political instability and frequent government changes.

The two parties are of the view that the current mixed system of first-past-the-post and proportional representation makes it difficult to achieve a single-party majority. While leaders of the two major parties say that frequent coalition changes since the 2022 election highlight this issue, the electoral system is not solely to blame for instability. The new government also plans to remove the provision of secularism from the constitution, leaving the space blank. Additionally, NC and UML have agreed to revisit the current three-tier federal structure, considering it a significant burden onto the state. 

Despite their push for a national unity government, it is unlikely to materialize fully, as the Maoist party and the Rastriya Swatantra Party have decided not to join the future Oli-led government. However, the NC-UML coalition expects to achieve two-thirds support in Parliament with the help of fringe parties. NC and UML are reaching out to fringe parties in order to increase the strength of the government. 

It remains to be seen whether the fringe parties would wholly buy into the propositions put forward by NC and UML. Former prime minister Madhav Kumar Nepal’s party, CPN (Unified Socialist), criticized the latest coalition, likening it to tyranny. 

Notably, the leadership of both NC and UML have not yet held intra-party consultations about the content of the constitutional amendments. Shankar Pokharel, UML general secretary of the NC-UML coalition, emphasized their primary agenda is constitutional amendment and called on all parties to join the national unity government.

The CPN (Maoist Center) has expressed strong opposition to changing the electoral system, viewing it as a regressive step. The Rastriya Prajatantra Party, however, views the agreement between NC and UML positively, believing that the current constitution cannot address the country’s problems.

Background of NC-UML coalition 

In 2015, during the constitution-making process, NC and UML formed a coalition government that successfully delivered the constitution. Initially, NC was supposed to support UML for the coalition government, but it backtracked on its commitment, straining the relationship between the two parties. This tension peaked when UML chair Oli dissolved Parliament in 2020.

Over the past two years, NC leader Deuba was reluctant to engage with Oli, fearing it might affect NC’s relationship with the Maoist Center. When the Maoists sided with UML in March, NC leaders including Shekhar Koirala began reaching out to UML, but results were slow. There were voices within both parties advocating for a coalition to ensure government stability, though some were against it due to the competitive nature of the parties and concerns about weakening the opposition.

At the same time, Deputy Prime Minister and Minister for Home Affairs Rabi Lamichhane was digging the files of some NC leaders accused in various corruption cases. Lately, with the surfacing of various corruption scandals, it was natural for the ranks of NC-UML to be fearful. As more scandals like the Giribandhu Tea Estate began to unravel, the situation became increasingly uncertain. Lamichhane had told Parliament on Monday that preparations were underway to form a powerful commission to investigate 25 corruption scandals.

Talks between NC and UML progressed three months ago  through a facilitator when Oli was in Jhapa for a week-long visit.  But the contents of the meetings were kept highly secret. On Saturday, Deuba and Oli held a candid and open discussion at Balkot, Oli’s residence. On Monday night, two top leaders signed in a document of agreement which remains top secret. Before the Balkot meeting, two secret meetings happened in Kathmandu. 

Despite initial distrust, several rounds of talks led Oli and Deuba to agree that the country faced a crisis due to constitutional flaws and the Dahal government’s mishandling of the situation. Oli was particularly frustrated with the Dahal-led government’s monopoly on decision-making, especially regarding the budget. As a result, UML withdrew its support from the government, requiring the prime minister to take a vote of confidence within 30 days. The formation of a new Oli-led government now depends on Prime Minister Dahal’s actions. Actually, Oli was in favor of keeping the agreement in secret with a plan to complete the entire process within a month but it was leaked in the media, that is why there was slow progress on Tuesday. 

Was Dahal kept in the dark?

Increased meetings between Oli and Dahal had raised concerns in Baluwatar. The prime minister was briefed by the Home Minister about these informal meetings. 

A recent meeting in Balkot prompted Prime Minister Dahal to invite Oli for talks, where Dahal asked Oli if he was forming a government with NC. Oli dismissed the reports, focusing on left unity until the general elections. However, after NC and UML agreed to form a new government, Dahal invited Oli again, urging transparency about the agreement with NC. 

Let’s briefly talk about the coalition of politics mainly after 2022. In the 2022 national elections, Dahal’s CPN (Maoist Center) emerged as the third-largest party with 32 seats. Despite an initial proposal from UML to form a coalition government, NC claimed the leadership and did not support the Maoists, despite an electoral alliance. 

Eventually, UML supported Dahal for the premiership, but he switched alliances multiple times between NC and UML. Dahal believed he could remain in power by playing between the first and second largest parties and was confident that external forces would not allow Oli to become prime minister.

Meanwhile, the leaders of both major parties were tired of the ‘opportunism’ and ‘turncoat’ character shown by Dahal, the third power in the parliament. Lately, Prime Minister Dahal had even started publicly speaking about the ‘magic number’. He began expressing the sentiment that he could remain prime minister for the entire five years by playing between UML and Congress.

Dahal’s expressions certainly unsettled Oli, eager to climb the chair of power, and Deuba, who wanted to become prime minister once again, sooner or later. Dahal’s statements violated the ‘gentlemen’s agreement’ of rotation with Oli. Oli had not taken Dahal from the alliance with NC to let him be prime minister alone for five years.

Had he understood the situation, Dahal could have found it easier to ally with NC. Even in an alliance with NC, Dahal would have had to give up the prime minister’s position to Deuba after two and a half years. Possibly, Dahal chose the difficult and survival path post-election? However, even after collaborating with UML, the ongoing dialogue with NC did not create an environment of trust. Meanwhile, Dahal also signaled a change in strategy. He began demanding that Oli allow him to run the entire period with the condition of unifying the party until the next election and stepping down from active politics to become the president. Oli clearly did not like this proposal.

In a political environment where betrayal has become a competition, Oli took the initiative this time. He went to Baluwatar, whispered sweet assurances in Dahal’s ear, and gave form to the new relationship. Dahal’s practice of betrayal with the magical number has become a strong fear of turning into a political culture, of which today’s players of the betrayal game could also become victims someday.

Future course

It seems likely that Oli will become prime minister. Dahal might attempt to break the agreement by offering the prime ministership position to Deuba, but this is unlikely to succeed. The constitutional amendment process will be challenging, potentially unleashing tensions. It remains to be seen how NC and UML will convince all stakeholders to support the amendments.

The UML has requested Prime Minister Dahal to resign by Wednesday. A leader revealed that the UML Secretariat meeting on Tuesday decided to ask Prime Minister Dahal to step down. 

This would pave the way for the formation of a new government under Article 76 (2) of the Constitution, according to the agreement between the UML and the Congress.

The UML has also invited other parties to join in forming a national consensus government led by Oli. According to sources, some parties including CPN (Maoist Center) could suffer a split in the run-up to the constitution amendment process.

Sher Bahadur Deuba and KP Sharma Oli, leaders of the first and second largest parties in the House of Representatives (HoR), had their first private meeting in more than two years at an undisclosed location three weeks ago. The two leaders had another meeting at Balkot, Oli’s residence, on Saturday.  

While meetings among top leaders of different parties should not be a big deal, the meetings between Deuba and Oli have created a stir both domestically and internationally. Both leaders have maintained strict secrecy about the contents of their discussion.

These meetings have likely caused significant unease in Baluwatar, the prime minister’s official residence, as well. This is why Prime Minister Pushpa Kamal Dahal called Oli early Sunday morning and scheduled a meeting in the afternoon. In the meeting, Dahal and Oli discussed the critical political situation of the country.

Before March 4, when Dahal broke away from Deuba’s Nepali Congress and joined forces with the Oli-led CPN-UML, Deuba repeatedly declined Oli’s requests for a meeting, fearing it might upset Dahal. However, after the breakdown in coalition, Deuba was willing to engage with Oli to form an alliance against Dahal, who leads the CPN (Maoist Center). Since then, a faction of the NC, including President Deuba, has been working to dismantle the current coalition in favor of a partnership between the first and second largest parties. The UML, however, is divided on this issue. Nonetheless, there have been increased talks between the two sides in recent weeks. Following his meeting with Oli, Deuba has called a meeting of the party’s office bearers for Monday.

According to NC Chief Secretary Krishna Prasad Poudel, the meeting will delve into the contemporary issues. Multiple persons privy to this development told ApEx that there are many issues that NC and UML are discussing in order to resolve the problems that country is facing. There are reports that UML Chairperson Oli is unhappy with the immature approach being adopted by Prime Minister Dahal and his deputy and Minister for Home Affairs Rabi Lamichhane. 

One UML leader said Oli is of the view that instead of focusing on service delivery and addressing the economic crisis that country is facing, both Dahal and Lamichhane are engaged in political stunts. There are also concerns that some ministers in the Dahal government are reportedly using corruption allegations as a political weapon to retaliate against opponents. 

The UML leader said Oli has advised Prime Minister Dahal against following the ‘Pakistani model’ of politics, where parties in power often use corruption charges to jail political opponents.

The issues extend beyond the government. The country’s economic situation is dire, there is growing pessimism among the population, and youth emigration is alarmingly high. Geopolitical tensions have further impacted the domestic political situation, and religious tensions are rising in some parts of the country. Additionally, the current constitution, adopted a decade ago, has several flaws that need addressing to ensure political stability.

Both NC and UML leaders argue that it is time to review and amend the constitution. Their current negotiations focus not on forming a government but on addressing the political situation. There is a growing realization that national unity among major parties is indispensable to ensure political stability and to inspire hope among citizens. The UML is advocating for a national government including the NC, UML, and the Maoist party. If the Maoist party is unwilling, some leaders say, the NC and UML could form a government capable of amending the constitution.

To amend the constitution, parties may agree to form an expert panel, with Parliament initiating political changes later. NC and UML particularly want to change the current mixed First-Past-the-Post (FPTP) and Proportional Representation (PR) electoral system, which they believe is the primary cause of political instability in Nepal.

Within the NC, senior leader Shekhar Koirala has been leading talks with the UML and other leaders. They believe that as long as the current electoral system remains, a single-party majority government is almost impossible. Provincial governments have become unstable, with related cases reaching the Supreme Court. Along with the electoral system, parties might also discuss changes to the secularism provision of the constitution.

While immediate changes are unlikely, the ongoing negotiations between the NC and UML could yield substantial results in the coming weeks. Both parties believe that without addressing these issues before the next election, maintaining political stability over the next 10-15 years will be impossible, which would harm the country’s progress and stability.

There’s no progress in status quo: Oli

CPN-UML Chair KP Sharma Oli has said that the country cannot move ahead in its current state. Speaking at a program organized in Kathmandu on Sunday, he mentioned that no one should insist that there is progress in status quo.

The UML leader emphasized the need for entrepreneurship and professionalism to modernize agriculture and create job opportunities. To rise above poverty, he said the country should increase its agricultural output.

“We need to increase production through modernization and the use of technology, but government policies have not been able to address this. We need a solid policy for this to happen,” said Oli.

He also expressed concern that villages were becoming deserted as the produce from the hills could no longer sustain livelihoods. He mentioned that the biggest challenge for Nepal currently is to bring the population below the absolute poverty line to a state where they can have enough to eat.

Oli also said that he has advised Prime Minister Pushpa Kamal Dahal not to get entangled in minor appointments and to move forward considering the bleak circumstances of the country and its citizens.

Dear Readers,

This week has seen significant developments on both the domestic and international fronts that deserve your attention. 

Nepal and China hosted a foreign-secretary level meeting in Kathmandu to discuss bilateral issues. Although no major breakthroughs were achieved, Chinese Vice Foreign Minister Sun Weidong’s visit marked a significant diplomatic engagement. During his stay, he met with Nepal’s top leaders, including President Ram Chandra Paudel.

There were speculations that Nepal and China might sign a Belt and Road Initiative (BRI) implementation plan during this visit. However, this did not materialize. It is possible that progress could be made during Chinese Foreign Minister Wang Yi’s visit to Nepal, which is expected to take place very soon. China was keen on finalizing the agreement during Prime Minister Pushpa Kamal Dahal’s visit to Nepal last year. But Dahal was not interested.

Speaking in the Parliament, Prime Minister Dahal outlined Nepal’s position on BRI, which almost all major parties agree with. He said Nepal prefers grants over loans and, if loans are necessary, they should be concessional with interest rates not exceeding 1.5 percent. He also stated that Nepal seeks loans from China on terms similar to those from the World Bank and the Asian Development Bank. This sentiment mirrors the position of former Prime Minister Sher Bahadur Deuba during his discussion with Chinese Foreign Minister Wang Yi in 2022. To date, CPN-UML Chairperson and Prime Minister KP Sharma Oli has not publicly detailed his views on the BRI.

We have an in-depth analysis of Prime Minister Dahal’s parliamentary address under the heading ‘PM Faces Tough Questions in Parliament’. For more details, please visit our website.  A delegation led by CPN-UML leader Bishnu Rimal visited Beijing this week—latest in the series of Nepali leaders visiting China. China’s influence in Kathmandu has increased considerably in recent times. Our feature titled ‘China’s Growing Clout in Kathmandu’ explores how China’s engagement with Nepal extends beyond the BRI.

During his parliamentary session, Prime Minister Dahal also addressed questions about issues related to India and the Russia-Ukraine war, among other topics. Deputy Prime Minister and Foreign Affairs Minister Narayan Kaji Shrestha attended the Asia Cooperation Dialogue in Iran, where he reaffirmed Nepal’s strong commitment to regional cooperation and multilateralism, a core foreign policy priority since the Panchayat era.

Last week, Bangladeshi Prime Minister Sheikh Hasina paid an official visit to India, although she had been to New Delhi a few days ago to attend Indian Prime Minister Narendra Modi’s inauguration. Along with bilateral discussions, the two leaders addressed sub-regional and regional issues, including power trade between Nepal, India and Bangladesh. Our detailed coverage of these topics is available online under the headline ‘A Landmark in Sub-Regional Energy Cooperation’. 

After the foreign secretary-level meeting with China, Nepal is now preparing for a similar foreign-secretary-level meeting with India. These annual meetings review the full spectrum of bilateral relations.

On the domestic front, political dynamics continue to be a topic of discussion. Speculation about the stability of the current government persists, with reports indicating ongoing talks between the Nepali Congress (NC) and the UML to explore potential new government formations. Our sister publication, Annapurna Post, recently published pieces advocating for the formation of a national consensus government.

Former President Bidya Devi Bhandari returned to the political spotlight amid rumors of her renewing her UML membership. However, in a recent interview, Bhandari clarified that she has not applied for membership and that the UML has not approached her. We have analyzed this development under the heading ‘Is Bhandari Planning a Return to UML?’, concluding that while her return to active politics is possible, it is not imminent.

The government has recommended ambassadors for eight countries, with the UML selecting former bureaucrats for its quota.

Meanwhile, the Rastriya Swatantra Party (RSP) remains in the political limelight. Its General Secretary Mukul Dhakal has come up with a report describing the party as being in ‘serious illness’ and in need of a ‘major surgery’ to maintain its status as a national party. This report, which is said to be based on feedback from over 3,000 cadres across 38 districts, has given rise to significant debate within the party. Dhakal, a vocal critic of the current government and an adversary of RSP President Rabi Lamichhane, insists that RSP ministers must justify their stay in the government. There is a section in the RSP which believes the lust for power could affect its very base.

A parliamentary panel investigating the financial status of around 29 cooperatives has expedited its work. Media reports suggest that the panel is preparing to question Home Minister Rabi Lamichhane regarding his alleged involvement in the misappropriation of cooperative funds.

I will be back with more updates next week. Wishing you all a happy weekend!