Following pressure from opposition parties, the government formed a probe panel to investigate the visit-visa scam. However, the move has failed to satisfy key opposition parties, including the Rastriya Swatantra Party (RSP) and Rastriya Prajatantra Party (RPP). These parties argue that instead of a panel led by former Chief Secretary Shankar Das Bairagi, who himself is under scrutiny by the Commission for the Investigation of Abuse of Authority, a parliamentary probe committee should have been formed.
Despite these criticisms, the panel has begun its investigation, though public expectations remain low due to past failures in implementing such committees’ recommendations. Nevertheless, the panel’s formation has helped the CPN (Maoist Center) save face. For now, discussions about a potential government change have subsided, with both opposition and Nepali Congress (NC) leaders refraining from further statements. However, given past unpredictability, the situation warrants close monitoring.
Meanwhile, the Janata Samajbadi Party Nepal (JSP-N), led by Upendra Yadav, has decided to withdraw its support from the KP Sharma Oli-led government, in which the Nepali Congress is a key coalition partner. While this move is unlikely to destabilize the government, the JSP-N justified its decision by citing the administration’s failure to ensure good governance, amend the constitution, and initiate economic reforms.
In parliamentary developments, the House of Representatives (HoR) has endorsed the budget for the next fiscal year, pending approval from the National Assembly. Opposition parties and independent lawmakers have protested, alleging that a significant portion of the budget has been allocated to the constituencies of top leaders from major parties.
On the political front, the RSP celebrated its third anniversary this week, with its chairperson, Rabi Lamichhane, who is currently in police custody, issuing an appeal to party cadres. The party is now focusing on expanding its activities nationwide.
The ruling CPN-UML, meanwhile, is preparing for its statute convention. Party Chairperson KP Sharma Oli has been tasked with drafting the political document, while Vice-chairperson Bishnu Poudel will handle statute-related issues, and General Secretary Shankar Pokharel will oversee organizational matters. A proposal to impose a 70-year age limit and a two-term cap for the party chair is under discussion, a contentious point, given Oli’s age (74). In a recent public statement, Oli dismissed the debate as irrelevant. Separately, the party has revoked disciplinary actions against Binda Pandey and Usha Kiran Timalsina, who had been penalized for criticizing the party’s acceptance of business donations for its office construction.
In legal developments, former prime minister, Madhav Kumar Nepal, appeared before the Special Court after the CIAA filed a corruption case against him over the Patanjali land scam. Released on bail, Nepal claims the case is politically motivated, an allegation Prime Minister Oli denies.
The Election Commission is preparing for upcoming by-elections in select constituencies and local bodies. After consulting with Prime Minister Oli this week, the government is expected to announce election dates soon. Oli is also set to visit Spain starting Saturday, with a potential trip to India afterward. Notably, India has yet to extend a formal invitation to Oli, despite his over year-long tenure as prime minister, a delay that remains unexplained.
On the policy front, the Supreme Court has issued an interim order barring government agencies from imposing restrictions on ride-sharing services. Under pressure from transport syndicates, the Gandaki provincial government has paused its plan to legalize ride-sharing. The court has also urged transport entrepreneurs to avoid disruptive strikes.
In the energy sector, Nepal has withdrawn the ‘take and pay’ provision from its budget following pressure from independent power producers. This provision, related to power purchase agreements with private developers, was a last-minute concession after the Nepali Congress (NC) intervened.
Within the NC, senior leader Shekhar Koirala continues pushing party president Sher Bahadur Deuba to hold the general convention before the 2027 elections. Koirala and Gagan Kumar Thapa fear that delaying the convention until after the polls could allow Deuba, who is set to become prime minister before the elections, to influence the outcome.
In foreign affairs, Nepal has paused its evacuation plan for citizens in Israel following the Iran-Israel ceasefire. At Nepal’s request, India has assisted in repatriating Nepalis from Iran, with six out of 16 evacuees already returned. Meanwhile, around 1,000 Nepalis in Israel have registered to return, but the government has slowed the evacuation process.
Finally, Nepal and India held productive talks on security and defense cooperation, covering joint military exercises, disaster relief, and personnel exchanges. While Indo-Nepal defense ties have remained strong over the past 70 years, Nepal has also recently deepened its defense collaboration with China.
