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Nepal’s interim government is operating amid a deep national crisis. Public trust in the state is weak. Institutions are working at cross purposes. Citizens, especially the youth, are demanding change on the streets, while political factions and external actors closely watch for any weakness to push their own agendas. The government’s mandate is limited but crucial: conduct national elections within six months, of which one month has already passed. This cannot be achieved through short-term political arrangements or by simply reacting to every crisis. The state must fix its weak institutional foundations. Fortunately, the Constitution offers a clear instrument for this task: the National Security Council (NSC). This is one of the government’s most strategic, but most underused, institutions.

Nepal’s instability is not happening in isolation. Youth groups are demanding structural change, while political parties that lost power after the dissolution of the lower chamber of the bicameral parliament (the House of Representatives) see this as a chance to make a comeback. At the same time, supporters of a return to the erstwhile royalist order are becoming more vocal, presenting themselves as an alternative political force. External actors are also watching the situation closely. 

A weak and distracted Nepal suits the strategic interests of some regional and global powers. The longer state institutions remain uncoordinated, the more space internal and external actors will find to influence national affairs. The current situation, latent inter-agency rivalries, uncoordinated responses, and widespread public anger reflect a deep crisis of coordination and command. If this gap remains, it could become very difficult to control later.

The NSC, established under Article 266 of the Constitution, was created precisely for such a situation. It is meant to serve as the strategic brain of national security, bringing together the Prime Minister and the Ministers of Defense, Home, Finance, and Foreign Affairs. However, successive governments have allowed the NSC to remain a ceremonial body, meeting rarely and acting even less. This interim government can change that. Reactivating the NSC requires no new law or constitutional amendment, only political will. The NSC offers a neutral platform to depoliticize security discussions, the authority to bring all security agencies under a common plan, and a legally sound way for an interim government to address security challenges.

Reviving the NSC should not mean only holding closed meetings. It should become a real center for coordination, planning and communication. The government can give it three immediate tasks. First, the NSC should issue a clear public directive explaining which agency does what during a crisis. This simple step will reduce confusion and close the gaps that opportunistic actors currently exploit. Second, intelligence and security agencies must be required to share information and work on the basis of a common threat assessment as fragmented works allow destabilizing elements to take advantage of blind spots. Third, the NSC should hold regular briefings to inform citizens about the security situation and present a common narrative. This is not about revealing sensitive information; it is about preventing rumours, misinformation and disinformation from filling the gap. While the NSC membership is constitutionally fixed, its processes can be more inclusive. It should consult representatives from the private sector, civil society, scholars, technology experts and youth groups as these stakeholders bring perspectives from the ground that government officials often miss.

Given limited time and high risks, the government’s approach must be focused and realistic. In the first phase, the government should activate the NSC by holding a serious, substantive meeting and publicly declaring it as the central coordinating body. This will signal both to the public and to external observers that there is a clear hand on the wheel. It should also launch an independent inquiry by forming a time-bound, judge-led commission to investigate recent protest violence. Showing accountability will strengthen public confidence and deny critics their strongest arguments. Alongside this, the government should establish a crisis communication desk to serve as a single, trusted source for verified information. When rumors spread about “foreign hands” or hidden agendas, citizens should know exactly where to get the truth.

In the second phase, the NSC’s policy directives must be translated into operational orders across all security agencies. In sensitive districts, local security committees made up of officials, police and community leaders should be set up to identify grievances early and prevent external exploitation.

The interim government’s success will not be measured only by whether the streets become quieter for a short period. Its real success will be judged by whether it leaves behind a more coherent, trusted and functional state than it inherited — one that is less vulnerable to internal manipulation and external pressure. The NSC can and should be the central instrument to achieve this. By reactivating the NSC and using it strategically, the government can provide clarity, restore coordination, and close the gaps that currently invite instability.

The author is a self-practicing social analyst. Through her independent study of Nepali society, she provides a unique perspective on societal norms

By embedding practical awareness, strong security, and digital trust in the investor “ecosystem”, Nepal can nurture a generation of empowered citizens. Digitization expands inclusion but also increases potential risks in the absence of adequate financial education. There are many examples in Nepal itself of how many investors have lost their investments due to information insecurity.

Lack of access to financial services is a major factor in this—they lack the ability to distinguish real opportunities from digital fraud. As the “Global Investor Week (Oct 6-12) 2025” begins, it is appropriate to consider the risks and opportunities facing Nepal’s growing young investor class.

Today, conversations about money flourish not at bank counters or in the offices of traders but on smartphones, reels and trading apps. The rapid digitization of financial services has made investing and saving more accessible than ever, creating a new class of first-time investors, many of whom are young and ambitious.

Yet, with these opportunities has come a surge in scams, misinformation and misplaced trust, which threaten to undermine the trust that underpins financial inclusion. The rise of financial influencers, or “finfluencers,” is perhaps the most visible sign of this new era.

They package complex financial concepts into 60-second videos, attracting millions. While some offer trusted insights, others engage in biased propaganda disguised as sound advice, often pushing risky products for undisclosed commissions.

For budding investors, this ecosystem is both a gateway and a minefield. Some proceed cautiously through systematic investment plans or fixed deposits, while others pursue quick gains through high-risk equities or speculative assets. Financial engagement carries both empowerment and risk. A lack of confidence or adequate financial education can discourage participation in formal markets, leaving them dependent on informal and exploitative options.

Financial literacy is essential for the general public as it helps them to choose banking services and make the right decisions. Along with financial literacy, there is also a need to increase digital transactions.

While most people acquire the knowledge necessary to develop a sensible financial plan, many errors will inevitably lead to irreversible adverse financial consequences. In order to survive and compete effectively in today’s environment, the youth, who constitute 70 percent of the population and 100 percent of Nepal’s future, feel strongly compelled to write and teach.

The world is getting smaller due to an increasingly integrated and globalized economy. In many industries, we are expected to compete against the best from around the world. Knowledge is truly a valuable asset. Without all the facts, sound decisions cannot be made, resulting in countless mistakes. Clarity is second only to accuracy for financial writers and editors.

Therefore, Nepali media reporters have been resolute in their efforts in recent years to make the content of their newspapers and its internet companion editions as accessible as possible to a wide range of readers.

Financial news presentation

It has been observed that despite the newspapers’ efforts, many people continue to find the terms, concepts and presentation of detailed financial news difficult—especially if they are relatively new to the world of business and finance. 

The capital market is more important now than ever. The increasing interdependence of the world’s countries—for which the acronym is globalization—has limited the ability of individual governments to act independently. In recent years, the importance of financial education has increased as a result of the development of financial markets and demographic, economic and policy changes.

Financial markets are becoming more sophisticated and new products are constantly being offered. Consumers now have greater access to a variety of credit and savings instruments provided by a variety of entities, from online banks and brokerage firms to community-based groups.

As a result of changes in pension arrangements, an increasing number of workers will take on more responsibility for saving for their retirement. With increasing life expectancy, individuals will need to ensure that they have enough money to last longer so that they can spend it during retirement.

Financial education

As a major topic in financial education, the definition of financial education should be deliberately kept broad. By using a broad definition of financial education that includes elements of information, instruction, and advice, the identification, description, and analysis of financial education programs is as inclusive and comprehensive as possible.

Financial education is the process by which financial consumers/investors improve their understanding of financial products and concepts and, through information, guidance and/or objective advice, develop the skills and confidence to be more aware of financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being. Instruction involves providing consumers with facts, data, and specialized knowledge to make them aware of financial opportunities, choices, and outcomes.

What is investment?

There is also some pride in being a capitalist. Your savings result in wealth creation. In a world without equity and bond investors, without the railways being built purely for profit, the pharmaceutical industry would be much smaller and Silicon Valley would still be producing fruit.

New technologies or products can be created. Books and movies can be written. A greater level of education can be obtained, leading to careers in fields such as corporate management, financial advisory, law, health care, sales, etc. Having a diversified portfolio of stocks, bonds, real estate, and other securities can significantly increase an investor’s returns and actually reduce risk.

But high-yield investments such as stocks, bonds, and real estate involve a greater level of risk, which can lead to lower investment returns and increased potential for losses.

In Nepal, SEBON and NEPSE have invested some time and resources in educating investors and expanding financial literacy, and the culture of stock investment has grown to the desired extent. 

Importance of financial education

The complexity of financial products means that consumers are now faced with a wide variety of financial instruments that offer a range of options in terms of fees, interest rates, maturities, etc. The quality of some of these financial instruments, such as life insurance policies, is difficult to assess because they are purchased occasionally and there is often a significant time lag between purchase and use.

The deregulation of financial markets and the reduction in costs brought about by the development of information technology and telecommunications have led to an increase in the number of new products tailored to meet very specific market needs.

The internet has also significantly increased both the amount of investment information and the availability of credit products and these products. A review of financial literacy surveys in 12 countries by international agencies concluded that financial understanding among consumers is low.

Financial literacy levels are lower for certain groups, such as the less educated, minorities, and those at the lower end of the income distribution.

Financial education can benefit consumers of all ages and income levels. For young adults just starting their working lives, it can provide basic tools for budgeting and saving so that spending and debt can be kept under control.

Financial education can help families gain the discipline to save for their home and/or their children’s education. It can help older workers ensure they have enough savings for a comfortable retirement by providing them with the information and skills to make wise investment choices with both their pension plans and any personal savings plans. Overall, financially educated consumers are in a better position to protect themselves and report potential abuses by financial intermediaries to authorities. In this way, they will facilitate supervisory activity and theoretically allow for a lower level of regulatory intervention.

As a result, the regulatory burden on firms will be reduced. 

The most commonly used method of providing financial education is through publications. These publications take various forms, including brochures, magazines, booklets, guidance papers, newsletters, annual reports, direct mail documents, letters, and disclosure documents. Another frequently used method is the internet, in the form of websites, web portals, and other online services.

Nepal is facing a unique convergence of political, social, and environmental challenges, leaving a profound impact on the collective mental health of its population. This year’s World Mental Health Day theme, “Access to Services: Mental Health in Catastrophes and Emergencies,” could not be more relevant. The nation has witnessed historic youth mobilization through the GenZ revolution, alongside unprecedented floods and landslides that have caused widespread loss of life, displacement, and disruption. Both events illustrate the urgent need for robust, accessible, and integrated mental health services for all Nepalis.

The burden of suicide in Nepal

Mental health challenges in Nepal have long been a public health concern. According to Nepal Police statistics, in the last fiscal year 2024/25 alone, 7,055 people lost their lives to suicide, averaging roughly 20 deaths per day. On a population scale, this translates to approximately 24 deaths per 100,000 people due to suicide in a single year.

The National Mental Health Survey 2020 further highlights that 6.5 percent of adults and 3.9 percent of adolescents reported having suicidal thoughts, indicating widespread psychological distress across age groups. Suicide is particularly significant among women of reproductive age (15–49 years), where it is identified as the leading cause of death. These alarming statistics underscore the importance of addressing mental health not as an ancillary issue but as a core public health priority.

Nepal has recognized mental health as a fundamental human right. Article 35 of the Constitution guarantees basic health services as a fundamental right, ensuring that all citizens can access health care, including emergency services, without cost. The Public Health Service Act 2075, Section 3, and the Public Health Service Regulations 2077, Rule 3, explicitly include mental health services as part of basic health care, guaranteeing citizens the right to free access. Moreover, the Muluki Criminal Code 2074, Section 185, prohibits encouraging suicide, reinforcing a legal framework to protect vulnerable individuals.

In line with the Sustainable Development Goals, Nepal aims to reduce suicide mortality from 16.5 per 100,000 population to 4.7 per 100,000 by 2030. Achieving this target requires both systemic reforms and community-level interventions that combine prevention, treatment, and psychosocial support.

Political upheaval and mental health: The GenZ revolution

The GenZ revolution represents one of the most significant social movements in Nepal’s recent history. Youth activists, primarily aged 15 to 29, organized protests, awareness campaigns, and digital advocacy to demand accountability, transparency, and systemic change. While the movement energized public discourse and created a sense of agency among young people, it also generated significant psychological strain.

Prolonged participation in protests, exposure to conflict and police action, disrupted daily routines, and the pressure of balancing academic and professional responsibilities created a high-risk environment for stress, anxiety, depression, and trauma. Constant exposure to political tension through social media amplified mental health risks, leading to emotional exhaustion and increased vulnerability to long-term psychological effects.

The experiences of these young activists highlight a broader lesson: political emergencies function as psychological catastrophes. Individuals engaged in social movements often experience emotional distress comparable to those affected by natural disasters. Recognizing and responding to such mental health needs is essential for building a resilient society.

Natural disasters: Floods and landslides

Nepal’s geographic and climatic conditions have made it prone to natural disasters. In early Oct 2025, continuous heavy rainfall caused severe floods and landslides across the country. The affected areas included Ilam, Rautahat, Khotang, and parts of Kathmandu Valley. Over fifty lives were lost, and hundreds of families were displaced, highlighting the devastating human and psychological toll of environmental emergencies.

In Ilam, entire villages were swept away by mudslides. Rautahat and Khotang experienced flash floods that destroyed homes, farmlands, and critical infrastructure. In Kathmandu, waterlogged roads, blocked highways, and submerged bridges severely disrupted mobility and access to essential services. Major highways, including Araniko, BP, and Kanti, were cut off for several days, isolating communities and delaying emergency relief.

These events produced not only immediate physical damage but also long-lasting psychological distress. Families faced the loss of homes and livelihoods, children were separated from schools and routines, and communities experienced uncertainty and fear. Displacement to temporary shelters and constant exposure to danger created conditions conducive to anxiety, post-traumatic stress, depression, and suicidal ideation. The floods served as a stark reminder that natural disasters have profound emotional and mental health implications alongside physical devastation.

Intersecting crises and compounded risks

The intersection of political upheaval and environmental disasters has intensified mental health challenges in Nepal. Youth already experiencing stress from activism were simultaneously facing additional pressures from floods, landslides, and displacement. Disrupted education, interrupted employment, and cumulative stressors have created conditions conducive to long-term psychological disorders.

Emergencies of any kind disrupt daily life, create uncertainty, and reduce access to coping mechanisms. In Nepal, these compounded crises demonstrate how political, social, and environmental factors converge to exacerbate mental health vulnerabilities.

Challenges in mental health service access

Nepal’s mental health infrastructure faces significant limitations. There are fewer than 200 psychiatrists nationwide, and most are concentrated in urban areas, leaving rural and disaster-affected populations underserved. Psychologists, psychiatric nurses, and trained counselors are limited, and community-based psychosocial support programs are often inconsistent due to insufficient resources, staff shortages, and limited integration into emergency response systems.

Stigma further limits service utilization. Despite legal provisions and constitutional guarantees, many individuals avoid seeking help due to fear of social judgment or misunderstanding about mental health. In disaster situations, when access is most critical, these structural and social barriers can leave vulnerable populations without support.

Strategies to strengthen mental health resilience

Addressing Nepal’s mental health challenges requires a holistic and integrated approach across multiple levels. Expanding community-based services is essential, with schools, health posts, and community centers providing accessible mental health support, particularly in rural and disaster-prone areas. Frontline workers, including teachers, health professionals, and volunteers, should be trained in psychological first aid, trauma recognition, and referral systems to ensure timely and appropriate support. Mental health services must also be fully integrated into disaster response plans, guaranteeing that counseling, psychosocial support, and safe spaces are available alongside essential provisions such as food, shelter, and medical care. The use of digital platforms and tele-counseling can further extend reach, connecting isolated communities during floods, landslides, and other emergencies.

At the policy level, the government must prioritize mental health within disaster management frameworks and allocate adequate resources for sustainable, nationwide service delivery. Finally, public awareness campaigns are critical to reduce stigma, educate communities, and promote early intervention, ensuring that individuals seek help promptly and receive the support they need.

Conclusion: Building a resilient Nepal

Nepal in 2025 illustrates the intricate connections between political, social, and environmental crises and mental health outcomes. The experiences of youth during the GenZ revolution, combined with the trauma of floods and landslides, as well as persistent challenges related to suicide, emphasize the urgent need for comprehensive, accessible mental health care.
Mental health is not a secondary concern. It is a fundamental right, a public health priority, and a societal responsibility. 

Strengthening mental health systems, integrating services into disaster response, and ensuring universal access are essential steps toward protecting lives, empowering youth, and building a resilient society.

On this World Mental Health Day, Nepal has an opportunity to act decisively to safeguard mental well-being, honor constitutional and legal rights, and ensure that the mental health of all citizens is treated with the urgency and respect it deserves.

The GenZ uprising of Sept 8-9 has reignited debate over the relevance of Nepal’s federal governance system. Calls are growing to dismantle the provincial structure and empower local levels further. At the same time, a parallel public sentiment questions whether seeking alternatives to federalism is premature. Political and social representatives emerging after the movement have openly presented divergent perspectives on the issue.

Nepal formally adopted a federal system with the 2015 Constitution, which came into full implementation in 2018. While federalism had been sporadically discussed in earlier debates, the Madhes movement and other ethnic-regional agitations following the 2007 Interim Constitution were pivotal in institutionalizing it. Political parties of that era accepted federalism under pressure to pacify unrest and restore stability. It is therefore indisputable that federalism in Nepal was not a spontaneously embraced principle but a system established through struggle.

Against this backdrop, dissatisfaction with the provincial setup, considered the “soul” of federalism, has emerged as a pressing subject for analysis. Why has public support for provinces eroded so rapidly? This question lies at the heart of the ongoing national debate: Why are the provinces neglected?

An ambiguous role

Nepal’s Constitution clearly delineates powers and responsibilities among the federal, provincial and local levels, including both shared and exclusive authorities. Despite these clear provisions and subsequent functional reports further clarifying them, the federal government has failed to sufficiently empower the provinces.

The Constitution restricts provinces from enacting laws that contradict federal legislation. Yet, because the federal parliament has delayed passing or amending necessary laws, provinces were left in a prolonged legal vacuum. Consequently, they began drafting their own legislation. For instance, the Federal Civil Service Act is still pending, whereas provinces have already enacted their civil and local service laws, creating legal inconsistencies that have reached the Constitutional Bench.

Fiscal federalism has similarly suffered. Major taxes and large infrastructure projects remain under federal control, preventing provinces from achieving financial self-reliance and making them dependent on federal grants. This situation has raised questions about the federal government’s genuine commitment to federalism. Administrative disruptions, particularly in personnel adjustment, have compounded the problem. Forced adjustment often met with resistance undermined the provinces’ ability to implement federalism effectively. The failure to stabilize the administrative backbone weakened the system’s overall efficacy.

Provinces’ weaknesses

In the initial phase, provincial governments appeared relatively agile and committed. Small seven-member cabinets functioned despite limited staff and legal gaps. Over time, some of these challenges got resolved, but then the provinces began replicating the federal government’s problematic practices.

Unnecessary expansion of ministries, oversized cabinets, bloated advisory bodies and costly administrative setups increased recurrent expenditures without producing tangible improvements in citizens’ lives. Provincial legislators frequently engaged in party splits and political maneuvering to secure positions and power—further eroding public trust. Corruption and uncontrolled benefits by political personalities amplified public criticism.

Government change in the Center also affected provincial stability. Governments were formed or dissolved at the federal leadership’s signal, weakening provincial autonomy. As a result, provincial administrations—the intended embodiments of federalism, began operating under external influence, failing to establish themselves as credible institutions in the public eye.

Judiciary’s ineffective role

Scholars have long expected the judiciary to guide provinces to become stronger and more capable through clear constitutional interpretation. Judicial decisions significantly shape federal practices, yet courts have failed to safeguard provincial autonomy adequately.

Most of the cases accusing the federal government of unnecessary interference or lack of facilitation have remained unresolved. Decisions, when issued, lack uniformity. For example, cases filed by the Madhesh Province Government over the Sagarnath forest project or staff adjustments have remained unresolved for seven years. Supreme Court rulings on the Gandaki Province government formation have given rise to significant legal disagreements. Differing court orders on writs filed by transferred civil servants further entrenched uncertainty for provincial governments and employees.

Such inconsistencies have reinforced the perception that centralized thinking dominates the judiciary. The courts’ failure to act as constitutional guardians of provincial stability is a major factor impacting public confidence in the federal system.

Irresponsible media

Mainstream media could have played a pivotal role in consolidating federalism. Instead, driven by TRP (Target Rating Point) competition, sensationalism often eclipsed informed reporting.

Positive provincial initiatives such as investments in social sectors, improvements in human development indicators and tourism promotion have received limited attention. In contrast, stories on cabinet reshuffles, ministerial lifestyles and petty scandals got amplified, fostering negative perceptions of the provincial structure.

While corruption has existed historically, media reports often exaggerated its prevalence only after the formation of provincial governments. Pro-federal voices were relegated to minor columns, while anti-federal perspectives dominated front pages. This biased information flow heightened public dissatisfaction and distrust toward provincial governments.

Influence multiplied

In today’s digital age, social media amplifies public discourse alongside traditional media. Activists and influencers compete for followers and views, often overlooking positive provincial initiatives. Single mistakes are sensationalized, analyzed from multiple angles and sometimes mixed with fabricated claims.

This flood of misinformation and malinformation leaves citizens unable to discern fact from fiction. Provincial governance is inherently the most challenging layer of the federal system for public comprehension. While it takes time to demonstrate necessity and effectiveness, various interest groups have exploited this period to magnify weaknesses and advance their agendas. Misleading campaigns have significantly contributed to public neglect of provinces.

Conclusion

Federalism forms the backbone of Nepal’s constitutional, political, and administrative framework. It was introduced not merely for administrative convenience but to ensure inclusive governance that accommodates Nepal’s diverse social, cultural and regional realities. Today’s imperative is not to dismantle provinces but to reform them—creating lean, efficient and results-oriented provincial structures. Through improved, citizen-centric federal practices, provincial governments can regain public confidence and become foundational pillars in building a tolerant society and a prosperous Nepal.