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Press Council former Chairman Bal Krishna Basnet has criticized the government's decision to withhold advertisements on media, arguing that the move is a direct attack on press freedom and democratic norms. 

Issuing a statement on Thursday, he described the decision as  a financial blockade that could severely hamper the country’s media sector. 

He said that the Prime Minister may have been misbriefed or influenced  by a vested interest group, saying that the Prime Minister's Office should not have issued such a directive. 

This decision will erode  the rights to publication and information guaranteed by democracy and the Constitution.

“The information and advertisements that the federal, provincial, and local levels can provide to newspapers, radio, TV, and online portals should be made transparent and systematic,” he stated, stressing that  stronger steps should be taken to stop corruption within the advertising sector. 

If this decision is implemented, nearly 800 newspapers and hundreds of community radio stations across the country could be forced to shut down, he warned. 

He urged the government to immediately roll back the decision to safeguard the media's role in the country. 

CPN-UML Vice Chairperson Bishnu Prasad Paudel has officially disavowed recent statements made by lawmaker Ram Bahadur Thapa in the House of Representatives, labeling them as a departure from the party’s core principles. 

In a stern response, Paudel clarified that the views expressed by Thapa, who currently serves as the party's parliamentary leader, are "contrary to the established policies and norms" of the CPN-UML.

Addressing the controversy, Paudel announced that the party's Central Secretariat would convene tomorrow to conduct a "serious discussion" regarding the breach of party discipline. The Vice Chairperson expressed his expectation that the leadership would reach a definitive and appropriate decision during the meeting to address the friction. 

This internal rift comes at a sensitive time for the party, as it navigates its role in the opposition following the 2026 general elections.

Nepal stands at a moment that feels different from its many past political transitions. This time, the shift is not just about who governs, but about how governance is expected to work. Citizens are no longer satisfied with rhetoric or symbolic change. They are demanding results. That shift, subtle but powerful, may define whether this moment becomes a turning point or just another missed opportunity.

The recent reform narrative reflects deeper structural pressures. Years of uneven economic performance, governance fatigue, and institutional drift have converged into a public demand for accountability and delivery. As highlighted in recent analysis, the political transition underway is less about electoral arithmetic and more about a renegotiation of the social contract between the state and its citizens. At the heart of this reset lies a simple but difficult question: can Nepal move from a system that manages problems to one that solves them?

The illusion of stability

On paper, Nepal’s macroeconomic indicators do not signal a crisis. Growth has hovered around four to five percent, remittance inflows remain strong, and the banking system appears liquid. But beneath this surface lies a fragile structure.

Remittances now account for over one-fifth of GDP. While they sustain consumption and support foreign exchange reserves, they also mask deeper weaknesses in domestic productivity. An economy that relies heavily on exporting labor cannot indefinitely postpone the need to generate jobs at home. At the same time, Nepal’s trade deficit remains persistently high, reflecting a structural inability to produce competitively at scale. Industrial output is limited, and agriculture continues to employ a majority of the workforce while contributing a declining share of GDP. This mismatch is not just an economic issue; it is a governance failure rooted in policy inertia and weak execution.

The credit misallocation problem

Perhaps the most telling indicator of structural imbalance is where money flows within the economy. A significant portion of bank credit continues to be directed toward real estate and trade rather than productive sectors like agriculture and manufacturing.

This is not accidental. It reflects a system where lending decisions are driven more by collateral security than by economic value creation. Land, often overvalued administratively, provides safety for lenders but diverts capital away from sectors that generate employment and long-term growth. This pattern creates a cycle. Productive sectors remain underfunded, growth remains subdued, and the financial system continues to favor low-risk, low-impact lending. Breaking this cycle requires deliberate regulatory intervention.

Here, institutions like Nepal Rastra Bank have a critical role. Policy tools such as differentiated risk weights, targeted refinance schemes, and credit guarantees can help redirect capital. But these tools must be applied consistently and with clear intent. Half measures will only reinforce existing distortions.

The execution gap

Even where resources are available, Nepal struggles to use them effectively. Capital expenditure consistently falls short of allocations, with a persistent gap between budgeted and actual spending. This is not merely a technical issue. It reflects deeper institutional weaknesses. Project preparation is often inadequate. Procurement processes are slow and complex. Subnational governments, despite increased fiscal autonomy, lack the technical capacity to implement projects efficiently.

The result is a paradox. Funds remain unused while infrastructure gaps persist. Development slows not because of lack of resources, but for want of capacity to deploy them. Addressing this requires more than procedural reform. It calls for investment in institutional capacity, particularly at the local level. Without that, fiscal federalism risks becoming a system of decentralised inefficiency rather than decentralised development.

Digital progress, structural limits

Nepal’s digital payments ecosystem has grown rapidly. Mobile banking users have surged, and QR-based transactions are now common in urban areas. This is often cited as evidence of financial innovation. But payments alone do not constitute a financial system. The deeper promise of fintech lies in expanding access to credit, enabling data-driven lending, and integrating financial services into everyday economic activity.

That transition has yet to happen.

Open banking frameworks, alternative credit scoring models, and digital identity systems remain underdeveloped. Without these, the digital ecosystem risks becoming a thin layer of convenience rather than a driver of structural change. The next phase of reform must therefore move beyond payments. It must focus on building a data-driven financial architecture that supports small businesses, farmers, and first-time borrowers.

Governance and trust

Ultimately, economic reform cannot be separated from governance. Trust is the invisible infrastructure that underpins development. Where trust is low, transaction costs rise, investment slows, and policy effectiveness diminishes.

Nepal’s trust deficit is well-documented. Corruption, inconsistent enforcement, and weak accountability have eroded confidence in institutions. Rebuilding that trust requires more than high-profile actions. It demands consistency, transparency, and fairness in everyday governance.

This includes strengthening oversight in vulnerable sectors such as cooperatives, where recent failures have exposed serious regulatory gaps. It also requires credible mechanisms for accountability that are insulated from political influence. Trust is not restored through declarations. It is earned through predictable and impartial action over time.

The risk of partial reform

The current reform momentum is encouraging. But history offers a cautionary note. Many countries have initiated reforms only to see them stall or reverse due to political pressures, institutional resistance, or lack of follow-through.

Nepal faces similar risks.

Coalition dynamics can dilute policy direction. Bureaucratic inertia can slow implementation. External shocks, particularly in remittance flows, can strain macroeconomic stability. To navigate these risks, reforms must be anchored in strong institutions and supported by broad-based consensus. They must also be sequenced carefully. Attempting too much at once can overwhelm capacity, while delaying critical reforms can erode momentum.

From opportunity to outcome

Nepal’s current moment is rare. Political change, demographic pressure, and technological possibility have aligned in a way that creates genuine opportunity.

But opportunity alone is not enough.

The real test lies in execution. Can policies be implemented effectively? Can institutions be strengthened to sustain reform beyond political cycles? Can technology be integrated in a way that expands opportunity rather than deepening inequality? These are not abstract questions. They will determine whether Nepal moves toward a more productive, inclusive, and resilient economy, or continues along a path of incremental change and recurring frustration.

The shift in public expectations is already clear. Citizens are no longer willing to accept governance that manages decline. They expect governance that delivers progress.

Meeting that expectation is the true measure of this reset.

The first session of the House of Representatives following the March 5 elections commenced on Thursday at the Federal Parliament Building in Singhadurbar. The session was summoned by President Ramchandra Paudel on the recommendation of the Council of Ministers, in accordance with the Constitution of Nepal. The meeting was presided over by the senior-most member of the House, Arjun Narsingha KC.

Despite the formal opening, the session was immediately disrupted by protests from the CPN-UML. As soon as proceedings began, UML lawmaker Guru Baral rose to obstruct the House, prompting the Speaker to grant him time to speak. The opposition expressed strong objections to the recent arrests of CPN-UML Chairperson and former prime minister KP Sharma Oli, as well as Nepali Congress leader and former home minister Ramesh Lekhak.

Baral alleged that both leaders had been detained by misusing Sections 181 and 182 of the Civil Code, calling it a matter of “grave concern.” He claimed that protests were taking place nationwide and accused the government of suppressing them, demanding their immediate release.

In a powerful address to the first session, Rastriya Swatantra Party (RSP) Chairperson Rabi Lamichhane asserted that his party carries a historic mandate to transform the country’s administrative core, Singhadurbar, rather than simply occupying it. Lamichhane emphasized that the RSP has already begun the process of reform and pledged that his party would repay the voters’ trust through responsible governance.

He issued a rare challenge to the opposition, inviting them to maintain a strict, 24-hour watch over his party’s actions to ensure total accountability. He reminded his fellow lawmakers that while their physical seats in Parliament have changed, their moral obligation to answer the public’s questions remains the same. He warned that failing this “massive mandate” would leave them permanently stigmatized by history. 

Regarding the arrests of Oli and Lekhak, Lamichhane firmly rejected claims of political vendetta. Citing the GenZ protests of September last year, he asserted that the first right to justice belongs to the mothers of martyrs and urged the opposition to respect the rule of law rather than blaming “foreign interference” for their political setbacks.

In a notable moment, Lamichhane issued a public apology from the parliamentary rostrum to the Dalit community for centuries of systemic injustice, describing it as “organized crime.” He pledged that no citizen would face discrimination based on caste under the current leadership and committed to ending political retaliation through the misuse of laws and ordinances.

He also assured a fair parliamentary environment, stating that dissenting voices would not be silenced and that a majority would not be used to harass the opposition. He reiterated his commitment to transparent governance and a foreign policy guided by national interest, while assuring investors of a secure and predictable environment.

Main opposition Nepali Congress lawmaker Bhishma Raj Angdembe extended his best wishes to Prime Minister Balendra Shah for completing a full five-year term, noting that no prime minister in the past 75 years has done so. At the same time, he cautioned against unconstitutional practices.

While expressing support for national progress, Angdembe rejected claims that the past 35 years had yielded no achievements, urging the government to acknowledge past progress while addressing remaining challenges. He also questioned the government’s transparency regarding the GenZ protests, asking whether the investigative commission’s report would be made public.

Raising concerns about the Gauri Bahadur Karki Commission, Angdembe accused it of bias, saying it focused on state suppression on Sept 8 but did not adequately investigate the arson and destruction of key government buildings, including Singhadurbar, on Sept 9. He stressed the need for a comprehensive and impartial investigation into both incidents.

Meanwhile, CPN-UML Parliamentary Party leader Ram Bahadur Thapa delivered a scathing critique of the current political transition, alleging that the GenZ movement on Sept 8 and 9 was an unannounced ‘Color Revolution’ orchestrated by the RSP. While formally congratulating Prime Minister Shah on his historic appointment and the RSP on the success in the March 5 election, Thapa claimed that this ‘magical victory’ was bolstered by decisive internal support from the Nepali Army, the bureaucracy, the Sushila Karki cabinet, the Barbara Foundation, and various NGOs. He further alleged that external ‘invisible powers’ used AI, algorithms, and Goebbels-style propaganda to frame champions of democracy as villains and murderers while elevating those seeking to ‘burn the country’ to the status of heroes.

In a series of pointed questions directed at the state, the UML leader demanded to know the true objectives behind the arson attacks on key state institutions like Singhadurbar, Shital Niwas, Baluwatar, and the Supreme Court, as well as the mysterious appearance of armed groups during the protests. He fiercely condemned the ‘illegal arrest’ of Oli and Lekhak, labeling it a conspiracy to dismantle established political leadership through a ‘cycle of state terror’ and ‘media trial’.

While acknowledging the temporary defeat of the traditional parties, Thapa warned that the CPN-UML would use its full strength in Parliament to demand answers, concluding that this loss is only a temporary setback and that a defeated army always possesses the potential to turn the tide toward victory.

Nepali Communist Party (NCP) Vice-chair and lawmaker Barshaman Pun delivered a reflective speech, admitting that his party failed to capitalize on the historic mandates it received in the past. Drawing a parallel between the current rise of the RSP and the success of the then-CPN (Maoist) in the 2008 elections, Pun acknowledged that the Maoists held a similar level of overwhelming public trust but were unable to utilize it effectively for the country’s benefit. 

He noted that the 2017 electoral alliance and subsequent party unity were also opportunities that the leadership “did not know how to handle” or sustain. Offering a word of caution to the newly dominant RSP, Pun urged them to learn from these past mistakes to ensure that this mandate translates into meaningful progress for the nation, promising that the NCP would provide the necessary cooperation to move the country forward.

Harka Sampang, chair of the Shram Sanskriti Party, launched a poignant critique of the perceived ‘internal discrimination’ within the parliament itself. Responding to earlier remarks by RSP Chair Lamichhane regarding systemic inequality, Sampang argued that a double standard exists where major ruling parties are allotted 30 to 40 minutes to speak while smaller parties are restricted to just a few minutes, asserting that all lawmakers are equally elected by the people and deserve an equal platform.

Beyond parliamentary conduct, Sampang took a hardline nationalist stance by demanding the immediate cancellation of the “unequal and treasonous” MCC compact, which he claimed undermines Nepal’s non-aligned foreign policy and serves a hidden military strategic purpose.

Outlining his party’s expectations for the new government, he urged Prime Minister Shah to adopt a policy of ‘management over displacement’ regarding landless squatters, calling for an end to the use of dozers against citizens’ homes and demanding the distribution of land ownership certificates instead. He also cautioned the government against making hasty, unstudied decisions on sensitive social issues, specifically urging a reconsideration of recent moves involving elderly allowances, student organizations, and bridge course regulations. 

Sampang advised the administration to consult thoroughly with the opposition and all stakeholders before implementing major changes, warning that failing to do so would lead to a cycle of making decisions only to be forced into embarrassing retreats later.

Rastriya Prajatantra Party (RPP) leader Gyanendra Shahi offered support for constitutional amendments to abolish the provincial system, arguing that it imposes a heavy financial burden. He also reiterated his party’s position in favor of restoring a constitutional monarchy, while cautioning the government against ignoring public sentiment.

Independent lawmaker Mahabir Pun described himself as a non-partisan figure committed to reform. He said he entered politics following the GenZ movement and briefly served as education minister, during which he initiated reform measures in the education sector. Pun said he had handed over draft reforms to the prime minister’s team and pledged to continue working for systemic change from within Parliament.

In the 275-member House of Representatives, the RSP holds 182 seats, followed by 38 seats for the Nepali Congress, 25 for the UML, 17 for the NCP, seven for the Shram Sanskriti Party, five for the RPP, and one independent member.

The meeting was adjourned and will reconvene on Sunday.