ApEx Newsletter (Oct 8): Oli, NC, Election, and Geopolitics
KP Sharma Oli has made it clear that he is not planning to step down as party chair in the near future. This comes despite calls from the public and party leaders to hand over the leadership to the new generation.
In a Zoom meeting with the party’s district presidents, the head of CPN-UML said that what happened on September 8–9 was a conspiracy against him, his party, and ultimately the country. “Though I am kicked out of power, I am continuously working for the party and country,” said Oli.
Even the top leaders of the party want to see Oli continue as leader. Within the UML, leader Mahesh Basnet has been vocal against the government and the Zen-Z protestors. Other top leaders—except General Secretary Shankar Pokhrel, who frequently expresses his opinion on Facebook—have remained silent.
Meanwhile, the Nepali Congress is preparing to hold a series of meetings in the coming weeks. Party President Sher Bahadur Deuba, who has yet to appear in public after being attacked by protestors on September 9, has called a meeting of the party’s senior leaders to discuss the agenda for the Central Working Committee, which will convene soon. The CWC meeting is likely to clarify the party’s position on elections and the restoration of democracy.
Deuba is also expected to appoint Purna Bahadur Khadka as acting party president in response to the Zen-Z protests. Party General Secretaries Gagan Kumar Thapa and Bishwa Prakash Sharma have initiated a signature campaign demanding a special general convention of the party. However, this move is being opposed by second-tier leaders aligned with Deuba, who are attempting to block Thapa’s rise to party leadership.
Amid fears of another wave of Zen-Z protests and possible clashes with youth organizations of major political parties, the Ministry of Home Affairs has issued an appeal for dialogue and negotiation. It has urged protestors to express their agendas through civil, dignified, and peaceful means.
Meanwhile, media reports suggest that the chiefs of security agencies and the Home Minister have differing opinions on how to proceed against those involved in the killing of 19 students on September 8 and the vandalism and arson the next day. A group of Zen-Z protestors is demanding the arrest of Oli and his Home Minister Ramesh Lekhak.
According to reports, Home Minister Aryal and Prime Minister Karki are in favor of arresting the leaders, while the heads of the security agencies believe that such action could further inflame tensions. It remains unclear whether the government will leave this matter to the probe committee or take direct action.
There are still fears that potential street protests could turn violent, especially as the morale of the security forces has declined. During the September 8–9 protests, the Nepali Police were a primary target—protestors looted their weapons and vandalized offices. Media reports indicate growing misunderstandings between the Home Minister and security officials on how to handle the situation. Tensions could rise further if clashes erupt between Zen-Z groups and youth wings of political parties.
In a new development, the Election Commission (EC) is preparing to hold consultations with major political parties regarding the upcoming elections. This is expected to create a more favorable environment for conducting the elections. Earlier, the EC had faced criticism for preparing unilaterally without consulting the parties. The EC will hold talks with political leaders on October 16.
Separately, Prime Minister Sushila Karki has assured the EC that the government is ready to provide logistical support to conduct the elections. Two major parties—Nepali Congress and CPN-UML—are quietly preparing to file a case in the Supreme Court demanding the restoration of the dissolved Parliament. In the current fragile political climate, a possible court-ordered restoration of Parliament cannot be ruled out. If the case moves forward, it could impact the election environment.
Prime Minister Sushila Karki has briefed Nepali ambassadors abroad on the foreign policy priorities of her government. She instructed the ambassadors to coordinate with relevant organizations to ensure the success of the elections. “We will inform you separately and soon if we need to request special technical support from a friendly country,” said Karki.
She also mentioned that homework is underway on whether Nepali citizens temporarily living abroad can vote in the upcoming elections. In her policy paper, Karki discussed the current geopolitical situation and Nepal’s economic diplomacy. Unlike previous prime ministers, she did not emphasize that the new government’s priority is immediate neighbors India and China.
UN Resident Coordinator Hanaa Singer Hamdy met with PM Karki to reaffirm the United Nations’ strong partnership with Nepal. According to the UN Nepal office, the discussions highlighted shared priorities: credible and inclusive elections in 2026, advancing transitional justice, promoting good governance, tackling misinformation, and sustaining progress toward graduation from Least Developed Country (LDC) status. “The UN remains committed to supporting Nepal’s democratic journey and the aspirations of its people for peace, justice, and prosperity,” the office said.
In sum, it appears the government is focused on holding elections on time.
Kamal Dev Bhattarai
Editor
Germany to provide 41 million euros grant to Nepal
Nepal and Germany today signed a technical and financial cooperation agreement on 41 million euros in grant.
German Ambassador to Nepal Udo Volz and Joint Secretary and the head of the Foreign Aid Coordination Division at the Ministry of Finance Dhani Ram Sharma signed the agreement on behalf of their respective governments, reads a statement issued by the German Embassy in Kathmandu.
The agreement builds upon the commitments made during the government-to-government negotiations held in Berlin on September 4-5, 2024, in accordance with international law.
The agreement encompasses several projects in the areas of energy, sustainable economic development and health, according to the statement.
One is the Power Distribution Strengthening Program (PoDiSP)which aims to enhance electricity distribution and consumption in and around the cities of Pokhara, Butwal, and Bharatpur.
An additional 20 million euros has been allocated for this initiative to a previously granted 10 million euros.
The agreement also includes an additional 12 million euros to strengthen the GRAPE (Green Resilient Agricultural-centeredPrivate Sector Economic Development) project. Another notable project is the Strengthening of Quality Infrastructure for the Health System, with a budget of 1.5 million euros.
The projects will be implemented by the German Implementing Agencies – Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), GMBH, Kreditanstalt für Wiederaufbau (KfW), and Physikalisch- Technische Bundesanstalt (PTB).
During the agreement signing ceremony, German Ambassador Udo Volz expressed his appreciation of the longstanding German-Nepal Development Cooperation. “With these new commitments, we further deepen our cooperation with the country and the people of Nepal in the areas of Energy, Sustainable Economic Development and Health,” the ambassador said.
Joint Secretary Sharma stated that the agreements reflect the strength of Nepal-German relations and demonstrate the shared commitment to inclusive and sustainable development. "We are deeply grateful for Germany’s continued support in key sectors that matter most to the people of Nepal," he noted, the statement further reads.
The agreement signing ceremony was held at the Ministry of Finance at Singha Durbar.
Representatives from GIZ, KfW and PTB, and from relevant Nepali line ministries were also present on the occasion.
EC invites political parties to hold discussions on upcoming HoR elections
The Election Commission (EC) has invited political parties to a meeting for discussions on October 16 regarding the House of Representatives (HoR) elections scheduled for March 5, 2026.
According to Election Commissioner Dr Janaki Kumari Tuladhar, the Commission has formally written to the Nepali Congress (NC), CPN-UML, CPN (Maoist Center), Rastriya Swatantra Party, and Rastriya Prajatantra Party, among others, summoning them for the discussions. Political parties that were represented in the dissolved HoR and those that won at least one ward member in the previous local elections have been invited to the meeting.
Although the Election Commission published the election schedule on October 6, it states that it is for internal planning purposes.
The final schedule for election-related activities will be determined after consultations with the political parties.
Ministry collecting details of loss in agriculture and livestock
The Ministry of Agriculture and Livestock Development has begun collecting details of loss and damage caused to the agriculture and livestock sector across the country due to the recent heavy rainfall.
The Ministry has instructed its subordinate offices to collect preliminary details of loss from all seven provinces and submit them to the ministry.
Information Officer at the Ministry, Mahananda Joshi shared that the details about the agriculture goods, quantity, loss of livestock, status of damage in sheds and the situation of the affected farmers would be gathered.
The agriculture offices in all provinces under the ministry would collect details in coordination with and cooperation from concerned local governments.
As informed, concerned farmers would be provided with relief and facilities after assessment of contributions made by farmers based on the data of floods-triggered loss and damage in the agriculture sector.
It will help the ministry to chart out a comprehensive plan and implement the evidence-based measures for risk mitigation in coming days, Joshi shared.



