The week that was

Dear readers,

We start this week’s update on a tragic note. We are talking about the tragic Saurya plane crash at Kathmandu’s Tribhuvan International Airport (TIA) on Wednesday that killed 18 out of 19 passengers on board.

At this time of tragedy, our thoughts are with the friends and families of the deceased. We also wish for a speedy recovery of the pilot who survived the disaster.  

Wednesday’s incident at the TIA has once again highlighted concerns over Nepal’s aviation safety. Once again questions are being raised about the oversight role of the Civil Aviation Authority of Nepal (CAAN) and the airlines. 

Recently, there has been an increase in technical errors, emergency landings, and other issues with domestic airlines, leading to a growing sense of insecurity among the public. People are now questioning the safety of both air and land travel, especially in light of recent plane crashes and major bus accidents.

These tragedies negatively impact Nepal’s international image and could further harm the tourism industry, which is just beginning to recover from the severe effects of Covid-19. The international community is closely monitoring these incidents as Nepal seeks permission from the European Commission for Nepali planes to fly over the European airspace.

This week, the monsoon continued to wreak havoc across the country, causing loss of lives and property. Already, monsoon rains have claimed over 130 lives and caused property damage worth billions.

Now onto politics. This week, Prime Minister KP Sharma Oli secured a two-third majority in a crucial floor test at the House of Representatives. However, it remains to be seen if he can maintain this support for long. After becoming prime minister, Oli faced tough questions from lawmakers, which we covered in detail. He also made public a much-anticipated seven-point agreement reached with Nepali Congress (NC) President Sher Bahadur Deuba, which has not yet been released.

Within the NC, Oli’s primary coalition partner, internal dissatisfaction is growing over the selection of ministerial candidates for provincial and federal positions. Senior leaders Shekhar Koirala and Gagan Thapa have accused Deuba of favoring his close associates. While this discontent may not escalate significantly, the NC leadership should address these concerns to prevent potential spillover effects on the coalition government. Deuba, who has total control over party structures, should be more accommodating and provide space for marginalized groups. The same goes for Prime Minister Oli; he should address intra-party concerns rather than suppressing dissenting voices.

Outside Kathmandu, following the formation of the NC-UML coalition at the center, new chief ministers are being appointed in the provinces. Provincial governments are becoming unstable due to a frequent change of guard at the Center, but our political parties seem least bothered about it.

Meanwhile, former prime minister and CPN (Maoist Center) Chairman Pushpa Kamal Dahal, who was ousted from power, is busy with internal party meetings, emphasizing the positive aspects of his government's tenure. He claims he was ousted after corruption scandals were uncovered and has urged party members to focus on rebuilding the party's organizational base. Since losing power, Dahal has not spoken in the Parliament.

In another story this week, a cross-party committee formed to address war-era human rights issues has made some progress, but it is unclear what top politicians think about the TRC Bill pending in Parliament. With the Maoists out of power, significant progress on the TRC seems unlikely.

On the economic front, with the new government in place, attention is on Finance Minister Bishnu Prasad Poudel to revive the country's economy. Prime Minister Oli has appointed former Finance Minister and Governor Yubaraj Khatiwada as his economic advisor, delaying the unveiling of the much-awaited monetary policy. Concerns remain about whether Poudel and Khatiwada will coordinate effectively on economic issues. The public expects good coordination between the Ministry of Finance, the Prime Minister’s Office, and Nepal Rastra Bank.

Also this week, Minister for Foreign Affairs Arzu Rana Deuba outlined the government’s foreign policy priorities. It is unclear if she is consulting with the prime minister on these matters, but she has discussed China’s Belt and Road Initiative (BRI), stating it cannot proceed without wider government and public discussions. The BRI has been under discussion since Nepal signed the framework agreement in 2017, with the debate polarized between pro-BRI and anti-BRI forces in Kathmandu. China and Western countries are investing in narratives for and against the BRI, respectively, dividing politicians.

Another notable story this week concerned Deputy Speaker of the House of Representatives Indira Rana Magar. Magar faced public scrutiny after a letter surfaced in which she had written to the US Embassy in Kathmandu to facilitate the visa process for people with no official connection to her.

Some parliamentarians have accused Magar of misusing her position and trying to “traffick” people into the US, and have called for her resignation to facilitate the investigation. Magar’s party, Rastriya Swatantra Party (RSP), has defended her, stating that the letter was written last year to request the US embassy to schedule an early date for visa interviews, and that there was no ill-intention.

RSP has also claimed that their detractors are using the old letter to smear Magar and the party. However, the moral question remains, as Magar did use her official letterhead of the Deputy Speaker for her correspondence with the US embassy.

That’s all for this week. Have a great weekend!