The week that was

This week, Prime Minister KP Oli was occupied in New York, attending various multilateral forums, delivering lectures and participating in bilateral meetings. Two significant engagements stood out: one with Indian Prime Minister Narendra Modi and another with senior US officials.

In a notable 30-minute meeting, the first between Oli and Modi since Nepal's new government was formed in July, the two leaders discussed bilateral relations. The meeting is expected to bolster Oli's political standing in Nepal, as there is a perception in Kathmandu that India has not fully supported his government. While Oli has yet to receive an official invitation to visit India, preparations are reportedly underway for a possible visit by Modi to Nepal.

During his appearances in New York, Prime Minister Oli addressed topics such as Nepal's transitional justice process, climate change impacts and sustainable development goals. He also met with Alize Albright, CEO of the Millennium Challenge Corporation (MCC), where both parties emphasized the importance of completing the MCC project to improve Nepal’s transmission lines and highways. Additionally, Oli held talks with USAID Administrator Samantha Power, focusing on Nepal's development efforts and the ongoing support from USAID.

In another significant development this week, Nepal and China resumed the joint military drill after a five-year hiatus. According to Chinese media, the exercises between the Nepali Army and China’s People’s Liberation Army are focused on skills such as rappelling, IED detection and disposal, checkpoint blockades, infiltration and armed rescue.

Also this week, Nepal Police moved forward with the report submitted by a parliamentary probe into the cases of cooperative deposit scams. A case has already been filed in the Chitwan District Court regarding the misappropriation of funds from various cooperatives. Chhabi Lal Joshi, former DIG of Nepal Police and one of the founders of Gorkha Media Network, was arrested and transferred to Pokhara for investigation. Reports suggest that Rastriya Swatantra Party (RSP) Chairman Rabi Lamichhane, who was also associated involved with Gorkha Media, may also face arrest for his alleged involvement in the misuse of cooperative funds. Lamichhane has called for public pressure to resist the potential arrest. 

On a more positive note, the International Monetary Fund (IMF) this week reported that Nepal's economy is gradually recovering. According to the IMF, “Credit growth is recovering while remaining appropriately below nominal GDP growth. Inflation continued to decelerate to around 3.6 percent mid-July, partially reflecting favorable commodity prices and weak demand. International reserves continued to rise, underpinned by robust remittances, recovering tourism, and still subdued imports.”

In political news, former president Bidya Devi Bhandari has made it clear she intends to re-enter politics, announcing that she hopes the CPN-UML will become a decisive force in the 2027 elections. Speaking at an event organized by the Madan Bhandari Foundation, Bhandari expressed her desire for UML to produce the next president and hinted at her own ambitions to return to power. UML insiders suggest that Oli may retire after the next election, paving the way for Bhandari to take a leadership role within the party.

This week, businessperson Durga Prasai was arrested following complaints accusing him of cybercrime. Prasai, known for his vocal criticism of current political leaders and for spreading unfounded claims on social media, has faced backlash despite his past close ties with Prime Minister Oli and CPN (Maoist Center) leader Pushpa Kamal Dahal. His supporters have protested his arrest, while police are preparing to file cybercrime charges. Prasai, now advocating for the restoration of the monarchy, appears to be raising his political profile.

In another story this week, CPN (Maoist Center) Chair Dahal expressed concerns over the proposed constitutional amendment, warning that while he is not opposed to the idea, it must be approached with caution to avoid triggering instability. “Amending the constitution could be like opening Pandora’s box,” Dahal said at a program, emphasizing the need for careful deliberation.

Lastly, while there was widespread celebration after Parliament passed the bill on the Truth and Reconciliation Commission, there has been little progress in making appointments to the transitional justice mechanisms. The process is expected to gain momentum once Prime Minister Oli returns from the UN summit.

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