Assessing early days of new govt

Two weeks have elapsed since Prime Minister KP Sharma Oli assumed office, backed decisively by the largest party in the House of Representatives, the Nepali Congress (NC). While it is customary to reserve judgment on a new government’s performance for at least 100 days, vigilant oversight remains essential from the outset.

During this period, Prime Minister Oli has focused on assembling his team, securing a vote of confidence from the Parliament, and receiving briefings from various government agencies. He has appointed key aides, including former Finance Minister Yubaraj Khatiwada as his economic advisor, though appointment of press and foreign affairs advisors remain pending. A close examination of Oli’s first fortnight in office reveals a promising trajectory.

Breaking from tradition, Prime Minister Oli has opted not to prepare a Common Minimum Program (CMP) or announce populist agendas to capture public attention. This contrasts with his previous tenures, as he now seems intent on allowing his administration's results to speak for themselves. Notably, the Nepal Rastra Bank has introduced a new monetary policy, eliciting mixed reactions but holding potential as a remedy for the nation’s economic challenges. Despite a significant downturn in the stock market following the new government’s formation, there is optimism for progress in the real estate sector. The private sector, a crucial driver of growth, is adopting a cautious “wait and see” stance regarding the policy’s efficacy.

Progress is also evident in addressing the contentious issues surrounding the Truth and Reconciliation Commission. A tripartite task force comprising the NC, UML, and the CPN (Maoist Center) is nearing a resolution of longstanding issues. If they reach a consensus, it will be a great achievement, given its two-decade history fraught with delays and disagreements. The Maoists, despite their recent ejection from power, are cooperating on TRC matters.

Unlike previous administrations, the Oli-led government has refrained from transferring government secretaries, as well as issuance of extensive, often unimplemented directives. The frequent transfer of secretaries has historically impeded service delivery. Additionally, the government is expediting ambassadorial appointments in key countries following the recall of ambassadors by the previous administration.

However, public scrutiny has emerged in response to some decisions by the UML and NC. The government's transfer of senior police officials has been poorly received, attracting criticism from opposition parties. The NC and UML are amicably resolving disputes over provincial government formations, marking a significant positive development. However, the selection of ministers at the provincial level has faced backlash. 

The administration has also contended with significant tragedies, including the Saurya plane crash and a fatal bus accident in Chitwan, which demanded urgent governmental response. Furthermore, the government had to rescue Nepali students in Bangladesh amid prolonged protests against the quota system in government jobs.

Despite these challenges, the government’s initial performance indicates a positive direction. It has not pursued ambitious yet unfeasible agendas, focusing instead on substantive progress. Criticism from ruling and opposition party leaders has been minimal. Favorable developments in the stock market, monetary policy, real estate sector, and declining inflation have created a conducive environment for the government.

While early indications are promising, numerous challenges remain. The government and political parties must abandon ineffective practices of the past. Prime ministers and ministers, in particular, should prioritize official duties over ceremonial engagements and project inaugurations to ensure continued progress.