Editorial: Oli’s path forward

Prime Minister KP Sharma Oli faces a complex situation of challenges and opportunities as he begins his fourth stint as the Prime Minister. His ability to become Prime Minister with the support of one of those forces is his political victory. Oli’s most significant advantage in his fourth term lies in parliamentary politics as he enjoys a near two-thirds majority in the lower house. This offers him an opportunity to break the political deadlock that has hampered Nepal's progress and to address pressing national issues.

He also has formidable challenges to tackle. Foremost among these is the need to revitalize an economy battered by global headwinds and domestic instability. Oli must come up with programs and policies that stimulate growth, boost investor confidence, attract investment and create jobs, while also managing inflation and fiscal pressures. Another critical task is completing the transitional justice process. For this, he will need to work closely with the main opposition CPN (Maoist Center)—one of the parties to the decade-long insurgency. Oli needs to demonstrate statesmanship by ensuring a fair and comprehensive approach that addresses the concerns of conflict victims while also bringing perpetrators to book.

Oli also faces a daunting task of balancing relations with Nepal’s giant neighbors, India and China. His relationship with India soured in the latter stage of his second term. He needs to make every possible effort to improve ties with the southern neighbor, which also happens to be the country’s largest trading partner. Oli must take a consistent and balanced approach that safeguards Nepal’s interests while maintaining cordial ties with both powers. This extends to managing relations with other international partners, including the United States.

Oli must work to foster cordial relations with other political parties. While his collaboration with NC gives him numerical strength, he needs to foster cooperation and mend ties with other parties who are wary of him, given his past attempts at dissolving parliament. He also needs to build trust with state institutions. The septuagenarian can steer the country toward stability and progress by learning from past mistakes, embracing a collaborative approach and focusing on national priorities.