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Prime Minister Sushila Karki has called on the private sector to rise with determination from the adverse situation and expressed the government's commitment to fully support them.

In a discussion with the representatives of the private sector held at the Office of the Prime Minister and Council of Ministers in Singha Durbar today, PM Karki stated that both the state and the private sector are facing a common challenge, citing significant damage to business establishments and industries during the recent Gen-Z protests.

"There has been such destruction. This has not only affected the private sector, but has also impacted the state. It is unfortunate that the private sector, which has provided employment, is being attacked," Prime Minister Karki said, adding that the government is committed to strengthening the rule of law and urged the private sector not to be disheartened. 

She said, "Do not be distressed at this time, we are with you. It is a positive aspect that the private sector is ready to support the state even when it is devastated."

In the discussion, Prime Minister Karki expressed a clear commitment that the government will operate within its legal jurisdiction.

"We will work within the rights we have. We will not operate outside the law. The state will take initiatives to provide relief for the affected industrial and commercial establishments," PM Karki said addressing the private sector. "Show the spirit to rise from the ashes; the state will assist. The private sector must also help to boost the morale of the security personnel."

Prime Minister Karki pointed out the possibility of controlling imports and raising taxes if necessary to promote internal production. However, she clarified that there will be no immediate policy for tax increases, stating, "Now is not the time to impose taxes. There will be an effort to evaluate the losses and provide relief."

The annual report of the Public Service Commission (PSC) has been submitted to President Ram Chandra Paudel today. 

The PSC Chairman Madhav Prasad Regmi presented the PSC Annual Report for Fiscal Year 2024/25 to the President in accordance with the Constitution of Nepal amidst a ceremony organized at the Office of the President.

President Ram Chandra Paudel has authenticated the bill to amend Nepal Citizenship Act, 2063 today. 

President Paudel authenticated the bill passed by both houses of the Federal Parliament in accordance with the Constitution, reads a press release issued by Spokesperson of the Office of the President, Pradeep Kumar Koirala.

Nepal’s first and second largest parties in the recently dissolved House of Representatives — the Nepali Congress and CPN-UML — are expected to put forward at least three conditions before agreeing to participate in the elections, which are tentatively scheduled for March 5, if everything goes as planned.

In their initial reactions, these parties have not opposed the elections. After spending ten days under Nepal Army protection, top leaders of major political parties have started returning to their rented apartments, as their personal residences were selectively burned down by protestors. Many leaders are still in hiding due to ongoing threats and an environment of insecurity.

According to cross-party leaders, the first major condition for participating in the election is full-proof security. Parties argue that elections cannot be held in an atmosphere of terror, reminiscent of the 2008 Constituent Assembly elections. They have expressed doubts over the possibility of free and fair elections, especially as the morale of the security forces is reportedly low following widespread attacks on political offices across the country.

Secondly, major political parties have acknowledged the demands of the Zen-Z protestors but are calling for a thorough investigation into what they describe as targeted attacks on select political leaders and the destruction of vital state institutions such as the Parliament, Judiciary, and Singha Durbar. Although the Sushila Karki-led government has pledged to form a high-level investigation committee, no concrete progress has been made so far. A senior UML leader, speaking on condition of anonymity, stressed the need for a transparent investigation and prosecution of those involved in the violence and property destruction. The Nepali Congress has also demanded an investigation into the September 9 attacks, including the assault on its Party President Sher Bahadur Deuba.

However, these demands are expected to face resistance from Zen-Z protestors, making it a challenging balancing act for Prime Minister Sushila Karki. She cannot afford to sideline either the protestors or the political parties if elections are to proceed smoothly. Society remains divided between two extremes — some believe the new government should completely ignore political parties, while certain party leaders continue to downplay the significance of the Zen-Z protests. Finding a reconciliatory path between these opposing views poses a serious challenge for the government.

Moreover, the major political parties — CPN-UML, CPN (Maoist Center), and Nepali Congress — have already declared the dissolution of Parliament unconstitutional. They are likely to file cases in the Supreme Court to determine its legality. These parties may decide to participate in the elections only after a verdict is issued. Past experience suggests that the Supreme Court can take several months to deliver rulings on constitutional matters, and internal disagreements among justices could further delay the process. In 2020 and 2021, the Supreme Court had invalidated the dissolution of Parliament by then Prime Minister KP Sharma Oli, although the context now is markedly different.

As of now, political parties have yet to resume their usual activities. Nepali Congress President Sher Bahadur Deuba is undergoing treatment in an army barrack after being seriously injured in an attack on him and his spouse, Arzu Rana Deuba. CPN-UML Chairman KP Sharma Oli has returned to a rented residence in Bhaktapur and issued a statement on Constitution Day. The Nepali Congress has held its first meeting of top leaders to discuss current issues. Meanwhile, CPN (Maoist Center) Chairman Pushpa Kamal Dahal has publicly supported the Zen-Z protestors’ demand for a directly elected president.

The Karki-led government has only just begun its work, forming a four-member cabinet so far. Prime Minister Karki is facing challenges in expanding the cabinet. President Ram Chandra Poudel had advised her to include representatives from major political parties, but Karki rejected the suggestion, arguing that appointing discredited political leaders could send the wrong message and provoke further protests. This decision, however, may make governance more difficult, as political parties could oppose every move she makes. The possibility of political parties taking to the streets once the situation stabilizes cannot be ruled out. Additionally, tensions between the President and the Prime Minister may escalate. President Poudel has already publicly stated that he will not endorse any ordinances except those related to elections, signaling potential friction between the two offices.