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The Rastriya Swatantra Party (RSP), a young party that surged to prominence in 2022 by campaigning on anti‑corruption and good governance, is going through a turmoil after the Sept 8–9 GenZ protests. In the immediate aftermath of the Sept 8 protest, RSP leaders publicly endorsed the movement and affirmed full solidarity with youth demands. 

Then on Sept 9, the party distanced itself from the violence, emphasizing its participation in peaceful demonstrations and promising to cooperate with investigations. These public messages reaffirmed RSP’s anti‑establishment brand. But even as it claimed the mantle of youth’s voice, the party’s internal cohesion frayed badly.

The RSP’s top leadership was already in flux when the protests hit. Its chair, Rabi Lamichhane, is in police custody and the party’s vice‑chairman, DP Aryal, is the acting head. Lamichhane’s long‑running legal troubles persisted into 2025. He was in Nakkhu prison when the GenZ unrest erupted, and a dramatic (but ultimately unsuccessful) bid by supporters to free him became a major controversy. 

The RSP Secretariat publicly acknowledged reports that Lamichhane was released during the riots using falsified documents, and it referred the matter to the party’s disciplinary commission for investigation. 

In a Secretariat meeting, Aryal urged party figures to avoid “unverified statements” that create confusion, and stressed the need to present a “single voice” to the public. Senior party leader and vice‑chairman, Swarnim Wagle, echoed calls for discipline and announced that an extended party conclave in late October would address “leadership transition, political strategy and organizational reform” ahead of the national polls. Some RSP leaders have privately argued that Lamichhane cannot lead the party into election, given his legal limbo, although no formal resignation from him had occurred to date.

High‑profile resignations in the party also reveal internal fractures. The most significant was Sumana Shrestha, a former education minister and joint general secretary of RSP. On Sept 14, she publicly quit the party, condemning “a culture of impunity” among the leadership and denouncing a party hierarchy that places itself above the country. 

Shrestha had already been a vocal critic of the party’s leadership style. Her departure crystallized perceptions that RSP’s young leadership was prone to internal conflict. Some RSP officials responded by expressing regret and vowing an internal review to strengthen the party. In short, RSP’s leadership rift has been one of the starkest post‑protest developments: a core of co‑leaders has had to maintain order in the absence of Lamichhane, even as some like Shrestha have fallen out.

The general convention of RSP is another talking point. The party is yet to decide whether to convene its first convention before the March 2026 polls. It, however, has called for an extended meeting for Nov 7 and 8 in Chitwan to finalize the things related to general convention, party leadership and ideology.

RSP Secretariat member, Santosh Pariyar, has proposed an early general convention along with a complete restructuring of the party—not just on political, ideological, and strategic grounds, but also on the basis of key national issues—at the party’s Central Committee meeting.

As the first option, he proposed that the party’s first general convention, originally scheduled for February next year, be moved to December this year. The RSP’s first general convention is currently planned for 19-21 Feb 2026 in Chitwan. It was initially scheduled for April 2025 but was postponed at the last moment.

For that, Pariyar suggested dissolving all existing committees. He proposed converting the current central committee into a general convention organizing committee. He further stated that the central committee formed after the convention should not only reorganize the party’s structure but also redefine its ideology, vision, working direction, and political issues.

If that is not possible, Pariyar has presented an alternative: calling an extended meeting to reorganize its structures. 

He told ApEx that the extended meeting would primarily focus on rebuilding the organization. Through it, he said the existing central secretariat and central committee could be reshuffled. Additionally, Pariyar pointed out that the RSP is suffering from ideological confusion, and therefore, restructuring is also needed on that basis.

“Let’s rebuild the party’s ideology too. We still have much to synthesize and clarify. We are still confused about where we stand on certain matters. Therefore, we must also reorganize our ideas from a theoretical perspective,” he said. “It is also time to reassess our agendas, the issues we raised earlier, how far we have taken them, and the new issues we failed to raise. The recent GenZ movement has brought up issues we once championed. Perhaps we should now take them up more strongly, redefine our political agenda, and broaden our scope.” The restructured committee, according to Pariyar, could then prepare for the March 2026 elections.

Ideologically, the RSP’s response to the GenZ uprising has been to double down on its core platforms. Its leaders have explicitly linked the protests to the failures of the old regime and have advanced policies addressing GenZ concerns. 

However, RSP’s attempts to capitalize on the GenZ movement have been controversial. On the second day of the protest, the party backed a supporters’ jailbreak for Lamichhane, which critics said undermined the protest’s non‑partisan ethos. The perception that RSP tried to hijack the protest for partisan gain has tarnished its image among some youth. In response, the party has intensified its official messaging that aims to reaffirm its goal of upholding protest demands like justice and free expression. But not many youths seem to be buying it.

The Nepal government has been providing a large amount of economic concessions annually through tax exemptions. The Ministry of Finance has stated that approximately Rs 2.5trn are provided in tax exemptions per year.

Tax exemptions are given in various ways. These include exemptions provided by the relevant laws, the Income Tax Act, the Value Added Tax Schedule, and the annual Economic Act. In particular, there is a practice of providing tax exemptions on value added tax and customs duties in grant or loan agreements under bilateral or multilateral foreign aid.

As mentioned in the 62nd Annual Report of the Auditor General, 2025, Section 18 of the Economic Act, 2023 provides for the Government of Nepal to reduce, increase, or partially or completely exempt from revenue the rates of fees, charges, duties, or taxes imposed by the prevailing law. Similarly, Section 14 and Section 15 of Schedule 1 of the Economic Act, 2023 provide for full or partial exemption of customs duties. According to the Customs Department's data system, it appears that Rs 79.87bn was exempted from customs revenue in 2023/24.

According to the details received from the Ministry of Finance, customs duty and value added tax of Rs 4.87bn were exempted from importing goods under the SAFTA facility. In addition, as per Section 18 (2) of the Finance Act, 2023, the Ministry of Finance has granted revenue exemption of Rs 20bn on import value of Rs 34bn to various ministries, departments, local levels, and corporations, including Rs 6bn, in the last four years. Similarly, as per Section 18 (3), it appears that revenue exemption of Rs 7bn has been granted on goods and goods worth Rs 43bn, subject to the terms of the project development agreement, for projects implemented with foreign loans or grants.

Pointing out that the Ministry of Finance has not kept updated records of the items and amounts exempted from revenue on materials and equipment imported into the facility, the Accountant General has suggested, “The exemption should be granted only if the master list is approved by the relevant project before inviting bids and whether the goods and goods imported into the facility were used in the same project or not. There should also be monitoring and since the scope of revenue exemptions is increasing, its impact should be analyzed and the integrated data of revenue exemptions should be presented to the parliament to promote transparency.”

In addition to the exemptions, the Ministry of Finance and its subordinate bodies have yet to recover Rs 435.22bn in revenue and principal and interest on loans that exceed the limit. Out of this, the revenue arrears are Rs 254.4bn, of which Rs 123.80bn (48.73 percent) have been filed for judicial review by taxpayers, so a large portion of the arrears are under consideration by judicial bodies. The government has been saying that the principal and interest on loans and investments made by public corporations, committees, boards, cooperatives and local levels that exceed the limit is Rs 181.18bn. The Accountant General has been saying that the amounts that exceed the limit, principal and amount, and revenue arrears should be recovered through legal procedures. Stakeholders say that due to non-payment of revenue, apart from the exemptions given by the government, the country is also facing an uncomfortable situation due to additional budget expansion in the education and health sectors.

The government has been giving tax exemptions to target groups as an incentive. According to Pandey, spokesperson for the Ministry of Finance, the main reason for giving tax exemptions is the provision given by the law and the constitution. “The purpose of this is to encourage any industry or business. In addition, incentives are also provided to certain classes and groups. Some exemptions are provided for tricycles and motorcycles used by people with disabilities,” he said. “This system of giving tax exemptions is not to benefit any specific person but is based on the law. Schedules have been placed in the Value Added Tax Act. Which classify taxable, non-taxable and zero-taxable transactions.”

Former Revenue Secretary of the Ministry of Finance, Ram Sharan Pudasaini, suggests that the annual tax exemptions have been misused to some extent and that it has increased inequality, suggesting that tax refunds and budget grants should be used instead. “The government is providing annual tax exemptions worth nearly two and a half trillion rupees through laws and various economic acts. This amount of tax exemption is excessive and there is no control and monitoring over it, which may have led to increased misuse,” he said.

Pudasaini also raised questions about the effectiveness of the tax exemptions currently being given. He commented that there is no analysis, audit or monitoring of whether the justification and purpose of the tax exemptions have been fulfilled and whether the benefits have reached the target group or not. Pudasaini noted that the current technology of granting tax exemptions by decision of the Ministry of Finance or the Council of Ministers is not right and suggests that tax exemptions should be given only in a very limited, targeted, short-term manner and especially in connection with investment and job creation. 

The government currently does not have an account of the amount of exemptions given by the schedule of the Value Added Tax Act on daily consumer goods, such as pulses, rice and green vegetables.

Stakeholders have been saying that the state is losing a large amount of revenue annually through tax exemptions. External donor agencies such as the World Bank and the International Monetary Fund (IMF) have also shown concerns regarding the large amount of tax exemptions. 

An IMF study has suggested reconsidering the system of tax exemptions given in Nepal on a large scale, says Tanka Prasad Pandey, spokesperson for the Ministry of Finance. 

“There are many such long lists of tax exemptions. In the past, there was no exact calculation of how much the government was giving such exemptions. However, the IMF has studied this issue and mentioned detailed details in its report. The study suggests reconsidering the system of tax exemptions given in Nepal on a large scale,” he said.

Even without the GenZ protests, a leadership shake-up within the Nepali Congress (NC) was inevitable. Owing to the two-term limit in the party’s statute, President Sher Bahadur Deuba is ineligible to seek another term. Like CPN-UML Chair KP Sharma Oli, Deuba showed no interest in amending the statute for his leadership continuity.

The protests, however, have accelerated the leadership transition inside the NC. In the first Central Working Committee meeting held after the GenZ demonstrations, Deuba announced his decision to step down from active party politics and named Vice-president Purna Bahadur Khadka as the acting party president. While Deuba may continue to wield influence until the general convention, he is unlikely to return to party leadership. Facing mounting pressure to resign after the protests, Deuba urged party leaders to convene the general convention as soon as possible. 

Having led the NC for nearly a decade (2015–2025), many believe the party has grown weaker under Deuba’s leadership. His cautious, consensus-driven politics often prioritized coalition management over party reform. He also neglected organizational strengthening, leaving many sister organizations and departments headless and inactive.

The NC suffered a humiliating defeat in the 2017 national elections, only to regain prominence in 2022 through an electoral alliance with the CPN (Maoist Center). 

Now with Deuba’s exit, the Central Working Committee has begun discussions on convening the party’s general convention. A group of leaders has submitted signatures from 53 percent of convention representatives demanding an early convention to elect new leadership. Debates are ongoing over whether to hold a regular or special convention, but either way, the timing is apt since the current leadership’s term is about to expire.

The key question now is: who will succeed Deuba? Several contenders are already preparing for the leadership race. General Secretary Gagan Kumar Thapa has publicly declared his candidacy, while senior leader Shekhar Koirala has confirmed he will also run. Within the Deuba camp, speculation is rife that acting president Khadka could contest, though it is unclear whether senior leaders from the faction will unite behind him. Other veterans, including Prakash Man Singh, Bimalendra Nidhi, and Shashank Koirala, are also said to be weighing their options.

The party is now divided over whether to organize a regular or special general convention. Leaders close to Deuba argue that a special convention would rely on old delegates and fail to capture the sentiments of GenZ. They insist that a regular convention would allow more young members to participate.

“We need to involve new members as well. The young generation (GenZ) should be given active membership, and the renewal process for old members must be finished too,” said NC Spokesperson Prakash Sharan Mahat. “We also need to conclude the convention process starting from the ward level. Because of that, some colleagues believe that there won’t be enough time to hold it in Mangsir (November–December).”

According to the Active Membership Management Committee, 81 percent of active memberships have been renewed as of mid-October, though data entry is still ongoing. So far, 60 districts have completed the renewal process.

Senior leader Shekhar Koirala, however, has called for the regular general convention to be held in Mangsir (November–December). “If other political parties have already begun preparations to hold their conventions in Mangsir, why can’t we do the same? If we truly want to make the Nepali Congress a party of new direction and new possibilities, we must hold our 15th general convention in Mangsir 2082 (November–December 2025),”  he said at the party’s Central Committee meeting. “I am confident that the General Secretary will bring forward a schedule for it, and I want to make it clear that I will extend my full support to that plan.” Koirala added that the NC must hold its regular general convention on time, as there is keen interest in the future direction of the Nepali Congress.

Koirala’s statement may have struck a chord among younger party members, who see the upcoming convention as an opportunity to redefine what the NC stands for in future and to win back relevance among the youth population. The challenge, however, lies in balancing the party’s traditional power structures with the growing demand for generational change.

The coming months will be crucial. The way the country’s oldest democratic party handles its leadership transition will not only determine its internal cohesion but also its role in shaping Nepal’s political future.

Following the GenZ movement, CPN (Maoist Center) has embarked on an unusually rapid internal overhaul. Pushpa Kamal Dahal remains in charge, but under immense pressure he has proposed, and begun implementing a full restructuring of the party. In late September, the Maoist Center’s top bodies were dissolved. Through an emergency meeting, the party agreed to disband its Central Committee and all subsidiary committees, and convened a special general convention before the year’s end. 

Under Dahal’s plan, the Central Committee and lower party organs were converted into a “convention organizing committee”, chaired by Dahal himself, to hold an early general convention (anticipated in November–December). In effect, Maoist Centre is resetting its leadership structure. All party committees at the national, provincial and local levels have been dissolved, with a transitional secretariat (composed of existing office‑bearers) managing day-to-day affairs until new leaders are elected. 

In Dahal’s own words “the party cannot function in the old fashion”. He has called for “new procedures”, urging leaders to transform their lifestyles and cultural behaviors. Maoist insiders say the convention will include direct elections for every post (including chairperson) and fundamentally reconstitute the party for the upcoming elections.

Dahal’s proposals explicitly target generational change. He has insisted that younger leaders and marginalized groups take a far larger role. At recent party meetings he has called for maximizing the participation of GenZ youths, women, Dalits and other under‑represented groups in all layers of party structure, including the Central Committee. 

The official party line is that the Maoists have long championed the core GenZ agendas, such as a directly elected executive, a fully proportional electoral system, and an inclusive democracy, and that only by uniting Maoist veterans with the GenZ movement can those demands be met. 

Agni Sapkota, the party spokesperson, has announced that all office‑bearers’ property details will be made public and a special commission will probe leaders’ assets, signaling a new anti‑corruption posture in line with GenZ demands.

Crucially, the Maoist Center has also created or tacitly embraced youth-led caucuses within the party. In mid-October, young Maoist activists announced a new “GenZ Red Force” (or “Red Task Force”) to press the party toward its stated goals. This group, led by Smriti Timalsina, a central member of the All Nepal National Independent Students’ Union (Revolutionary), has appointed coordinators in dozens of districts to expand the party’s grassroots reach and restructure the organization. 

The task force has vowed to “protect the party from leaders who have tried to dominate it for years” by rooting out corruption and promoting new leaders. It has called for investigation into all Maoist leaders’ assets (starting with those currently in power), and even suggesting that top leaders like Dahal serve only one more term before stepping down. 

In effect, young Maoist cadres are policing their own party, aligning with GenZ’s sentiments. As one analyst notes, the Maoists have “pledged to include GenZ members in all committees,” and their new commissions (on party finances, internal discipline, etc.) appear as much about placating youth outrage as about real reform.

However, Vice-chair of All Nepal National Independent Students’ Union (Revolutionary) Biraj Thapa says that GenZ Red Force is an unofficial group and it has no credibility within the party. “They have neither consulted with party leaders nor with the student wing of the party,” he told ApEx.

On policy, the Maoist Centre is likewise repositioning to mirror youth grievances. Dahal has publicly echoed GenZ demands: he repeatedly highlighted the need for a directly elected president and a proportional electoral system as answers to the crisis. In recent rallies, he urged Maoists and GenZ activists to “contest the elections together” so that the protesters’ goals can be achieved. 

The party is effectively trying to invert its image: long seen as a gerontocracy, it now champions youth empowerment and transparency—even if many doubt the sincerity of these moves.

On communication, Maoist leaders have tried to show solidarity with the young protesters. Dahal issued statements supporting the GenZ protests while cautioning against violence, and he has repeatedly framed the Maoist Center as the only major party with a genuine record of progressive reform. The party’s official mouthpiece and youth organizations have used social and mainstream media to court young voters. 

Post‑GenZ reforms in the Maoist Center have been seen as more profound and systemic than other parties. No top leader (including Dahal) was immediately forced out, but the entire party apparatus has been set to be renewed. However, the general convention of the party has always seen the election of Dahal as the party chair. However, the party cadets now talk openly about “new leadership” and rectifying past errors. 

ANNISU (Revolutionary) Vice-chair Thapa says this is the high time to listen to the youth voices in the party and cash in on the momentum of the GenZ movement. “This movement has marked time to restructure the party wing and sister organizations,” he said.

Meanwhile, the Maoist Center, along with the CPN (Unified Socialist) and six other parties, has signed an agreement on party unification. The chairpersons of these parties signed the agreement after reaching a consensus on an 18-point proposal.