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The political document presented by Gagan Kumar Thapa at the Nepali Congress Special General Convention proposes a far-reaching transformation of the country’s political landscape and national politics. It reviews the prevailing political situation and introduces new ideas to address existing challenges. The document is likely to trigger a nationwide debate on several key issues.

View on the GenZ movement

The document has taken ownership of the Sept 8–9 GenZ movement. It states: “The youth-led movement has brought Nepali politics to a distinct and challenging turning point. From the perspective of our party, the political situation before and after the GenZ movement is entirely different.” The rebellion is described as an outburst of public frustration against repeatedly failed leadership, the erosion of credibility in public institutions, and systemic problems such as misgovernance and corruption.

The document further states: “We were the largest party in the parliament that was dissolved by this movement, and we were also a stakeholder in the deposed government. When the rebellion erupted addressing public grievances, we must acknowledge the reality—while repeatedly assuring the general public—that, in one way or another, we were involved in these issues and failed to intervene in time to prevent these anomalies.” According to the document, the GenZ rebellion should be understood as a movement for fundamental transformation, demanding economic development, meaningful opportunities for youth, good governance, and government accountability.

At its core, the document argues, the GenZ rebellion was about change: changes in policies, methods and practices, thinking and mindset, and certain leadership roles. As the largest party in Parliament and part of the government targeted by the movement, the need for internal reform within the Nepali Congress became evident.

The document notes: “Recognizing this, party members at all levels raised their voices for transformation. As calls for change grew stronger at the grassroots level, there was concern at the center that we had reached a point where decisive action had become difficult.” Previously, following the GenZ movement, the party leadership had not fully taken ownership of the uprising.

The document reaffirms the party’s commitment to political reform, good governance, and youth participation in the wake of the GenZ movement, which it describes as a historic political awakening. It expresses deep sorrow over the tragic incidents during the protests and pays tribute to those who lost their lives. Thapa has pledged that acts of repression and violence during the protests, along with serious human rights violations, will be independently and impartially investigated. A government commission is currently conducting an inquiry.

The document emphasizes that truth and justice must be established and legal action taken against those responsible. Recognizing the political awakening of the youth as a vital societal force, it commits to institutionalizing meaningful youth participation at all levels of party organization and state governance. “The call for fundamental transformation expressed by the youth is the living political capital of our society,” the document states, adding that policy-level and structural arrangements will be implemented to ensure decisive youth representation. The NC establishment and other parties, particularly the CPN-UML, do not agree with Thapa’s position on the GenZ movement.

Good governance and anti-corruption

The document highlights that the core demands of the rebellion are closely linked to corruption control, transparency, and good governance. It calls for a multiparty national dialogue to address these demands and institutionalize reforms reflecting citizens’ aspirations. The party pledges to:

• Engage all stakeholders to build consensus on good governance without violating constitutional principles
• Lead multiparty dialogue to create a shared national understanding and ensure result-oriented reforms
• Strengthen the independence of constitutional bodies, regulatory authorities, and public institutions
• Depoliticize universities, public agencies, and service delivery organizations while ensuring merit-based functioning and inclusive representation
• Simplify administrative procedures, strengthen institutional capacity, and enforce financial discipline
• Promote transparency, accountability, and citizen-responsive governance

Reclaiming NC’s leadership

The document emphasizes reclaiming the Nepali Congress’s leadership in national politics. At critical moments in history, it states, the party has taken decisive decisions and forged a distinct identity. At its founding, the party voiced public aspirations for freedom, civic supremacy, human rights, liberation from the Rana regime, and democracy. In 1990, restoring people’s rights and establishing a multiparty system were its core objectives. Following the 2006 movement, the party played a decisive role in resolving issues of democracy, republicanism, federalism, and inclusiveness through a democratic constitution. The document acknowledges all major political documents since 1950, including the recent GenZ movement.

Politics grounded in principles

Ahead of upcoming elections, the document reiterates its commitment to politics based on core values: integrity, democracy, and public service. It stresses that principles will take precedence over power and rejects pre-election alliances that compromise its ideals. Over the past three decades, the party has endured setbacks, exile, and violent challenges while upholding its principles. Even when electoral outcomes were manipulated, it accepted results without compromising integrity.

The party acknowledges recent challenges in maintaining its commitment in a polarized and populist political climate but reaffirms that it will never compromise democratic values, national integrity, sovereignty, or the rule of law.

Reform of state mechanisms

The document acknowledges long-standing criticism of state institutions over the past three decades, particularly excessive political influence that has weakened their functioning. It calls for an overhaul of state mechanisms and proposes reforms, including to the Commission for the Investigation of Abuse of Authority (CIAA).

Corruption is identified as the root cause of Nepal’s political, administrative, and economic challenges. The party pledges to strengthen the rule of law, ensure accountability, and reinforce anti-corruption mechanisms through measures such as:

• Ensuring independence of constitutional bodies, including the CIAA and the Auditor General
• Appointing officials based on competence, integrity, and proportional representation
• Mandating asset declarations by ministers, parliamentarians, and senior officials
• Protecting state institutions, universities, and public offices from partisan interference

Improving public service delivery

The party proposes reforms to make public service delivery citizen-centered, transparent, and result-oriented. These include fixed service timelines, accountability for delays, reduced red tape, and expanded e-governance.

Rejecting office-centered administrative thinking, the document emphasizes citizen-focused services. Integrated service centers will replace fragmented systems, allowing citizens to access multiple services—such as registration, licensing, taxation, social security, and health—through single physical or digital platforms. Digital connectivity will be expanded to enable home-based service delivery.

Public servants’ competence and integrity are highlighted as essential. Salaries will reflect market value, and training will focus on efficiency, communication, and modern administrative practices. The number of ministries at federal and provincial levels will be reviewed and rationalized, and an umbrella law will strengthen federalism and clarify intergovernmental authority.

Democratic reforms within political parties

The document acknowledges persistent problems such as weak intra-party democracy and leadership stagnation. It argues that democracy requires continuous participation, accountability, and inclusiveness, not just periodic elections. Proposed measures include:

• Electing all leaders—from ward level to central leadership—through democratic processes
• Conducting timely and transparent internal elections in all party-affiliated bodies
• Ensuring representation of women, Madhesis, minorities, persons with disabilities, youth, and marginalized communities
• Institutionalizing internal democracy through competitive elections and gender-balanced candidacies
• Introducing digital, transparent candidate evaluation systems based on competence and integrity

The document also proposes tenure limits for executive positions and a one-time proportional representation rule to broaden leadership opportunities.

Reform of the electoral system

The document supports reforms to make Nepal’s electoral system more inclusive, stable, and accountable. It proposes reviewing constitutional provisions, introducing reserved constituencies and “Single Rotation Reserved Constituencies,” guaranteeing voting rights for Nepalis abroad, and institutionalizing “Right to Reject (No Vote).” Primary elections, state funding based on vote weight, and strict financial accountability are also proposed.

Limiting the term of the Prime Minister

Reflecting public sentiment, especially among youth, the document proposes a two-term limit for the Prime Minister. Currently, neither party statutes nor the Constitution impose such limits. The Nepali Congress pledges to lead efforts to incorporate this provision, noting that the same leaders have dominated the premiership since 1990.

Political influence on constitutional bodies and public institutions

The document criticizes excessive politicization of constitutional bodies and public institutions, which it says has undermined credibility and institutional integrity. It proposes policy- and law-based appointments, open applications, public oversight, and transparent selection processes.

A “cooling-off period” is proposed to prevent immediate post-retirement appointments to constitutional bodies. Legal protections will also be introduced to shield officials from political pressure and penalize partisan interference.

Foreign policy

On foreign policy, Thapa reaffirms commitment to national interest, sovereignty, territorial integrity, and balanced diplomacy. Nepal will strengthen ties with India and China based on equality and mutual benefit while diversifying global partnerships to support development and economic growth.

The national economy posted a modest year-on-year expansion in the first three months of fiscal year 2025/26, even as quarter-on-quarter indicators point to a contraction, according to the National Accounts Estimates released by the Nepal Statistics Office (NSO).

Based on seasonally unadjusted data—figures that are not corrected for seasonal patterns such as festivals or harvest cycles, the Gross Domestic Product (GDP) at basic prices grew by 3.02 percent in the first quarter of 2025/26 compared to the same period of the previous fiscal year. 

The year-on-year growth, however, remained relatively subdued due to contraction in several production-related activities, including food grain crops, forestry products, life insurance services, and domestically produced construction materials. Despite these pressures, growth in electricity generation and distribution, financial activities, livestock production, fruits and vegetables, trade services, and tourism inflows helped keep overall GDP growth in positive territory.

According to the NSO, estimates of seasonally unadjusted quarterly GDP are first produced on the basis of indicators related to various economic activities. Estimates of seasonally adjusted quarterly GDP are then prepared using the X-12 ARIMA method introduced by the International Monetary Fund (IMF). Quarterly growth rates are calculated based on these estimates, according to the NSO, it added.

According to the estimates, all 18 industrial classifications recorded positive growth on a year-on-year basis during the quarter. This indicates a broad-based but moderate recovery when compared with the first quarter of 2024/25.

In contrast, seasonally adjusted data show that the economy contracted by 1.68 percent in the first quarter of 2025/26 compared to the fourth quarter of 2024/25. According to the NSO, this contraction reflects negative growth in 13 out of 18 industrial sectors, which outweighed modest expansion in the remaining sectors.

Among sectoral performances on a year-on-year basis based on seasonally unadjusted data, the electricity and gas sector recorded the highest growth at 14.91 percent, supported by increased power generation and distribution. This was followed by financial and insurance activities, which grew by 7.07 percent, and professional, scientific and technical services, which expanded by 5.52 percent.

The agriculture, forestry and fisheries sector—the single largest contributor to the economy—posted a growth rate of 1.36 percent. Although paddy production declined during the period, modest increases in livestock, vegetable, and fruit production helped keep overall agricultural value added in positive territory.

Wholesale and retail trade; repair of motor vehicles & motorcycles, the second-largest sector, was estimated to have grown by 3.89 percent year-on-year, driven by growth in domestic production of tradable goods as well as higher imports. On the lower end of the spectrum, water supply, sewerage and waste management activities recorded the weakest growth at 1.11 percent, followed closely by human health and social work activities at 1.19 percent.

Seasonally adjusted quarter-on-quarter data present a more challenging picture. During the review period, only five sectors registered positive growth, while the remaining 13 sectors experienced contraction. The electricity and gas sector again stood out with a 4.95 percent growth compared to the previous quarter.

The agriculture, forestry and fisheries sector, however, contracted by 1.65 percent . Mining and quarrying saw the sharpest decline at 10.05 percent, followed by public administration, defense and compulsory social security-related activities, which shrank by 5.95 percent.

The NSO said the negative quarter-on-quarter performance largely explains the overall contraction in seasonally adjusted GDP during the first quarter, even though year-on-year indicators remain positive.

The Election Commission has formally recognized the working committee of the Nepali Congress led by Gagan Thapa.

A meeting of the Commission held on Friday granted official recognition to the Thapa-led committee, including authorization to use the party’s four-star flag and its election symbol, the tree.

With this decision, Thapa has officially become the President of the Nepali Congress.

Recently, a Special General Convention was held at Bhrikutimandap under the leadership of then General Secretaries Gagan Kumar Thapa and Bishwo Prakash Sharma.

The convention elected a new working committee under the headship of Thapa. 

Ahead of the crucial March 5 elections, Nepal’s largest political party, the Nepali Congress (NC), has plunged into a deep internal crisis following a formal split. The rupture has thrown the electoral process into uncertainty and exposed a widening generational divide within the party. Two rival factions—one led by party president Sher Bahadur Deuba and the other by General Secretary Gagan Kumar Thapa—are now locked in a legal and constitutional battle for legitimacy. Gagan Thapa is 49 years old, while the current party president, Sher Bahadur Deuba, is nearing 80.

The establishment faction has expelled  Thapa and Bishwa Prakash Sharma, accusing them of organizing a special convention in violation of the party statute. In response, the Thapa-led faction has claimed overwhelming support within the party, asserting that it commands the backing of nearly 67 percent of the General Convention representatives. The faction has already elected a new Central Working Committee (CWC) through the convention and submitted its updated documentation to the Election Commission (EC), seeking official recognition.

The immediate authority to decide the party’s legitimacy lies with the Election Commission, which will examine the submitted documents and consult both factions. However, any party dissatisfied with the EC’s decision is almost certain to challenge it at the Supreme Court (SC), making the judiciary the ultimate arbiter. This legal uncertainty has placed the party—and the broader electoral process—in a precarious position.

At the heart of the split lies a generational conflict sharpened by the GenZ–led youth movement of Sept 8–9. Young leaders had demanded swift leadership change, greater internal democracy, and ownership of the reform agenda raised by youth activists. Instead of accommodating these demands, senior leaders who are above 70 years consolidated control, rejecting calls for a special convention despite provisions in the party statute. The refusal ultimately triggered the breakaway led by Thapa, symbolizing a broader struggle between reformist youth leaders and the party’s old guard.

The timing of the split is very meaningful. Candidate nominations under the Proportional Representation (PR) system have already been finalized and cannot be altered unless the entire electoral process is cancelled. Meanwhile, the deadline for nominations under the First-Past-the-Post (FPTP) system is just six days away, leaving the NC with only a narrow window to resolve its internal dispute and finalize candidates. Given the legal and constitutional complexities involved, it appears highly unlikely that the matter can be settled within the next four to five days.

If the dispute remains unresolved, both factions are expected to proceed independently, each claiming to be the legitimate Nepali Congress. This raises serious questions: Which faction will the EC recognize for electoral purposes? Can the EC and the government proceed with elections without the participation of the country’s largest party? Or will the election calendar have to be revised?

The EC is constrained by time. With less than 50 days remaining before the scheduled polls, extending deadlines or granting additional time may not be feasible. While elections could theoretically be postponed to April or May, such a move could invite constitutional challenges, as the current government is mandated to hold elections within six months of its formation.

If elections proceed as scheduled amid this chaos, the Nepali Congress is likely to suffer significant electoral damage.