Ahead of Prime Minister KP Sharma Oli’s expected visit to New Delhi, the long-standing border dispute between Nepal and India has resurfaced. The controversy follows the recent India-China agreement to resume trade through the Lipulek pass, a territory disputed between Nepal and India. In 2020, Nepal amended its constitution to incorporate Kalapani, Lipulekh, and Limiyadhura within its official map. The government has formally objected to the India-China agreement, while India maintains that border trade through Lipulekh has been ongoing since 1954.
This development puts pressure on Prime Minister Oli, as political parties are urging him to raise the issue during his upcoming India visit. Leaders from the ruling Nepali Congress have already made public statements pressing PM Oli to act. Although both sides have previously agreed that boundary issues should be resolved through diplomatic talks, little progress has been made, and the dispute remains one of the most complex in bilateral relations. For now, China has not responded to Nepal’s objection.
Meanwhile, Nepali Ambassador to China Krishna Prasad Oli met with Liu Jinson, director-general of the Department of Asian Affairs of Chinese Foreign Ministry. It is unclear whether two sides discussed this issue. The Chinese readout states that both sides had friendly and in-depth exchanges of views on China-Nepal relations and cooperation projects. Interestingly, Oli will also travel to China later this month to attend the SCO meeting as an observer. Lawmakers have raised this issue in the Parliament, asking the government to take up this issue with New Delhi and Beijing.
Meanwhile, India-China relations appear to be warming after both countries signed a series of agreements this week, a notable shift since the Galwan Valley clash in 2020. Western nations, particularly the US, are watching these regional dynamics closely, especially as US-China and India-U.S ties remain strained over trade and tariffs.
Indian Foreign Secretary Vikram Misri visited Nepal recently to extend an official invitation to Prime Minister Oli for his India visit. During his stay, Misri met a wide range of political leaders and discussed bilateral issues. While it is now confirmed that Oli has accepted the invitation, the two governments have yet to finalize the date.
Turning to domestic politics, the Rastriya Swatantra Party (RSP) and Rastriya Prajatantra Party (RPP) have been boycotting Parliament, demanding a probe into the recent visa scam. However, the tables may be turning.
The ruling coalition is preparing to impeach Deputy Speaker Indira Rana Magar over her alleged role in writing a letter to the American Embassy recommending visas. Observers see this move as a pressure tactic against the RSP, forcing the party to soften its stance. If the RSP refuses to compromise, its deputy speaker may face impeachment. A section of the Nepali Congress, led by Shekhar Koirala and Gagan Thapa, has criticized the ruling coalition’s move, calling it an abuse of the parliamentary majority.
Meanwhile, former President Bidya Devi Bhandari has refused to step back from active politics. She continues to insist that her party membership, held for forty years, cannot be revoked. Recently, she visited the party office in Biratnagar and met with supporters despite a directive banning such activity. She has now opened an office in Kathmandu to run her political work more systematically. Prime Minister Oli, however, has remained silent on her actions. Notably, in the party’s recent Central Committee meeting, leaders Surendra Pandey and Yubaraj Gyawali voiced their dissent against the decision to strip Bhandari of her membership, criticizing the leadership for avoiding the issue in official party documents.
On another front, teachers are once again on the streets after the government failed to fulfill its promises. The ruling coalition had pledged to pass the Education Bill to address their demands, but the legislation has stalled. With protests growing, the government faces increasing pressure to act quickly.
In the opposition camp, CPN (Maoist Center) Chairman Pushpa Kamal Dahal continues to project himself as central to national politics. Speaking at a recent program, he claimed that even while in opposition he has shouldered the “sole responsibility” of national politics, warning that the country’s situation could deteriorate if he were to withdraw from that role.
In legal developments, the Supreme Court has issued a mandamus order to proceed with an investigation against Janata Samajbadi Party Chairman Upendra Yadav for his alleged involvement in the 2007 Gaur massacre. In that clash, 27 cadres of the then CPN (Maoist) were killed in violence with members of the Madhesi Janadhikar Forum Nepal. The ruling comes just weeks after Yadav exited the government, and he has since been sharply critical of the ruling coalition.
On the international stage, Nepal took an important step by ratifying the WTO Agreement on Fisheries Subsidies. On Aug 18, WTO Director-General Ngozi Okonjo-Iweala received Nepal’s instrument of acceptance from Ambassador Ram Prasad Subedi. Only three more ratifications are needed for the agreement to take effect. Okonjo-Iweala praised Nepal’s leadership, calling its move significant for both landlocked and least-developed countries.
In public health, the World Health Organization confirmed that Nepal has eliminated rubella as a public health problem. The achievement reflects years of immunization campaigns and strengthened disease surveillance. While rubella is usually mild in children, it can cause severe complications in pregnancy, making this milestone particularly important.
In technology, Communication and Information Technology Minister Prithvi Subba Gurung announced that 5G services will be launched in Kathmandu and Pokhara by January 2026. He added that the government is working to improve internet quality nationwide under the Digital Nepal initiative.
Finally, the Nepali Army and China’s People’s Liberation Army will hold the fifth edition of the Sagarmatha Friendship joint military exercise in Nepal from Sept 6. The 10-day exercise will focus on counter-terrorism, combat tactics, and disaster management, underscoring deepening military ties between the two neighbors.
