On March 9, Tribhuvan International Airport witnessed a historic gathering as thousands of supporters welcomed former King Gyanendra Shah upon his return from Pokhara. The crowd, estimated at 14,000 by police, escorted the former King to his private residence, Nirmal Niwas, in a show of solidarity for the monarchy. Organized by pro-monarchist parties like the Rastriya Prajatantra Party (led by Rajendra Lingden) and Rastriya Prajatantra Party Nepal (led by Kamal Thapa), alongside Hindu outfits and businessman Durga Prasai, the event marked one of the largest monarchist demonstrations in recent years. Despite a lack of coordination among organizers, the turnout has energized monarchist forces, who are now planning more protests to push for the restoration of a ceremonial monarchy.
The rally was not just a show of support for the former King but also a reflection of growing dissatisfaction with the current political system. Many participants expressed frustration with the failure of political parties to address issues like corruption, unemployment, and poor governance. The monarchist movement, though fragmented, has gained momentum in recent years, with significant demonstrations in 2021 and 2023 drawing considerable attention from both domestic political parties and the international community. However, these protests have lacked a unified structure or leadership, with deep divisions among various groups hindering the emergence of a cohesive movement.
Interestingly, the protests have inadvertently united Nepal’s major political parties, who are now preparing counter-demonstrations to defend the republican system. Prime Minister KP Sharma Oli has warned against any attempts to undermine the constitutional setup, while CPN (Maoist Center) Chairperson Pushpa Kamal Dahal is leading efforts to counter the royalist movement. Dahal has canceled all party programs to focus on organizing a Kathmandu-centric movement to protect the current republican system. The largest party, Nepali Congress, however, has not taken the protests seriously, with some members arguing that the growing support for monarchy reflects public dissatisfaction with the failure of political parties to deliver on their promises.
Meanwhile, Kulman Ghising, the managing director of Nepal Electricity Authority (NEA), continues to dominate headlines. Despite facing scrutiny from the Energy Ministry and political pressure, Ghising remains a beloved figure for his role in ending Nepal’s chronic load-shedding crisis. This week, Energy Minister Deepak Khadka credited India for resolving the power crisis, downplaying Ghising’s contributions. However, Nepali Congress General Secretary Gagan Kumar Thapa defended Ghising, emphasizing his impending retirement and the public’s overwhelming support for him. With Ghising’s popularity intact, the government appears hesitant to take any drastic action against him.
Ghising’s tenure at NEA has been marked by significant achievements, including the reduction of load-shedding hours and the improvement of the country’s power distribution system. His efforts have earned him widespread acclaim, but they have also made him a target for political maneuvering. During the recent elections, the CPN (Maoist Center) used Ghising’s achievements as a campaign tool, further complicating his position. Despite the challenges, Ghising’s legacy as a transformative leader in Nepal’s energy sector remains secure.
In another significant development, the cancellation of dozens of USAID-funded projects has sent shockwaves through Nepal’s development sectors, including health, education, agriculture, and democracy. The government is scrambling to address the gap, but political leadership remains silent on the issue. While India and China may step in to fill the void, their support is unlikely to fully compensate for the loss of US aid. With the UK also cutting foreign aid and Europe prioritizing defense spending, Nepal faces an uphill battle to secure alternative resources. As the US shifts its focus to the Indo-Pacific region, Nepal may soon initiate talks to revive critical projects.
The cancellation of USAID projects has raised concerns about the future of Nepal’s development initiatives. Many of these projects were aimed at improving healthcare, education, and agricultural productivity, and their sudden termination has left a significant void. Government officials have started consultations on how to address the gap, but the lack of a clear strategy has left many stakeholders worried. The situation is further complicated by the geopolitical dynamics in the region, with India and China viewing the US presence in Nepal with suspicion.
On the domestic front, Prime Minister KP Sharma Oli, often criticized for neglecting provincial structures, is now engaging directly with provincial assemblies. This week, he addressed assemblies in Lumbini, Far-West, and Karnali, signaling a renewed commitment to federalism. Whether this marks a genuine shift in policy or a political maneuver remains to be seen. Oli’s engagement with provincial structures comes at a time when there is growing discontent with the central government’s handling of federalism. Many provincial leaders have accused the central government of undermining their authority and failing to allocate adequate resources.
Oli’s outreach to provincial assemblies is seen as an attempt to address these concerns and strengthen the federal structure. However, critics argue that his efforts are too little, too late, and that more concrete actions are needed to ensure the success of federalism in Nepal. The coming weeks will be crucial in determining whether Oli’s engagement with provincial structures will lead to meaningful change or remain a symbolic gesture.
In the realm of diplomacy, Foreign Minister Arzu Rana Deuba is currently in India, where she is participating in the prestigious Raisina Dialogue. Alongside her diplomatic engagements, Deuba is expected to meet Indian External Affairs Minister S Jaishankar and extend an invitation to Prime Minister Narendra Modi for the upcoming Sagarmatha Dialogue in Kathmandu. The Oli government is keen to strengthen ties with India, but an official invitation for PM Oli to visit India is still pending. As both nations explore the possibility of high-level visits, Nepal’s diplomatic efforts remain in the spotlight.
The Sagarmatha Dialogue, scheduled for May 16-18, is expected to bring together top leaders from across the region to discuss issues of mutual interest. The event is seen as an opportunity for Nepal to showcase its diplomatic prowess and strengthen its ties with neighboring countries. However, the success of the dialogue will depend on the participation of key leaders, including Indian Prime Minister Narendra Modi.
