Good evening from Kathmandu,
The government's priority remained consolidating peace in the Tarai-Madhes region following last week's deadly communal violence in Sunsari and other districts. Although the immediate security situation has largely stabilized, Kathmandu appears unconvinced that the risk has fully subsided. A series of high-level consultations suggests the government is shifting from crisis management to preventive engagement aimed at averting another outbreak of unrest.
Home Minister Sudan Gurung briefed Prime Minister Balendra Shah on the evolving security situation after returning from Sunsari and Siraha, where he met the families of those killed in the violence and assessed conditions on the ground. Separately, the Ministry of Home Affairs held consultations with Hindu and Muslim community leaders, urging both communities to identify their concerns and recommend measures the government could adopt to strengthen communal harmony.
These consultations reflect growing concern that the Kaptanganj incident was not merely a localized law-and-order problem but a sign of increasingly fragile interfaith relations in parts of the Madhes. The death toll has risen following the death of another injured victim.
Officials now appear to be placing equal emphasis on intelligence gathering, community engagement, and monitoring organizations suspected of exploiting religious tensions. The coming weeks will test whether the relative calm achieved through administrative intervention can translate into longer-term peace. A particularly worrying development is the reported use of various forms of intimidation by members of the majority community against minority communities. In Parliament, lawmakers also criticized the police for opening fire during the unrest in Madhes.
Domestic air travel has become more expensive after Nepal Oil Corporation increased aviation fuel prices by NPR 20 per litre, raising the rate to NPR 290 per litre. Following the adjustment, the Civil Aviation Authority of Nepal revised airline fuel surcharges, leading to higher ticket prices across domestic routes. The increase adds to transportation costs at a time when businesses and consumers continue to face broader inflationary pressures. Higher airfares are expected to affect tourism, business travel, and connectivity with remote regions, where air transport remains an essential service rather than a luxury.
Finance Minister Swarnim Wagle continued consultations with key economic stakeholders by meeting the chief executive officers of commercial banks, signalling that restoring business confidence remains central to the government's economic strategy.
Rather than focusing solely on banking regulations, Wagle used the meeting to examine deeper structural challenges facing the economy, including subdued private investment, weak credit demand despite historically low lending rates, and excess liquidity within the financial system. He described commercial banks as the economy's principal meeting point, capable of providing the clearest assessment of market sentiment and investor confidence.
The discussions indicate that the government increasingly recognizes confidence—not liquidity—as the principal constraint on economic recovery. Future policy initiatives are therefore likely to focus on regulatory reforms and measures designed to encourage private sector investment rather than relying exclusively on monetary stimulus.
The Ministry of Industry, Commerce and Supplies sought to reassure consumers that Nepal is not facing a shortage of liquefied petroleum gas (LPG), despite reports of supply disruptions in several areas.
According to the ministry, LPG imports remain sufficient to meet normal market demand, although higher consumption following the resumption of full-cylinder distribution has temporarily strained the supply chain. Officials also appealed to consumers not to engage in panic buying or unnecessary stockpiling while promising reforms to improve the transparency and predictability of LPG imports and distribution.
The government's intervention highlights the sensitivity surrounding fuel supplies, where rumours alone can quickly disrupt markets and create artificial shortages. However, conditions on the ground appear less reassuring. A gas distributor told me only a few hours ago that it could take another three days for supplies to return to normal, suggesting that the government's assurances may be more optimistic than the actual situation.
The government's handling of landless and informal settler communities also came under renewed parliamentary scrutiny after Nepali Congress lawmaker Bhishmaraj Angdembe demanded a comprehensive action plan within seven days.
Presenting an urgent public importance motion in the House of Representatives, Angdembe accused the government of pursuing eviction campaigns without adequate resettlement, humanitarian support, or legal safeguards. He argued that genuinely landless households should receive secure housing, healthcare, education, and sustainable livelihood opportunities rather than being subjected to forced displacement.
Citing fatalities linked to eviction operations and poor conditions in holding centres, the opposition lawmaker argued that the government's approach prioritized political optics over lawful and humane settlement management. His criticism is likely to intensify pressure on the government to balance urban land management with constitutional commitments to social justice and the protection of vulnerable communities.
Lawmakers from the Nepali Communist Party (NCP) also urged Prime Minister Balendra Shah to address Parliament and respond to at least seven pressing national issues. Speaking on behalf of the party, MP Balawati Sharma said the Prime Minister should address alleged border encroachment by neighbouring countries, rising communal tensions, the growing number of self-immolation cases linked to unemployment and social distress, the plight of landless settlers, the demands of victims of loan-sharking, grievances raised by microfinance borrowers, and the demands of doctors, healthcare workers, and other groups currently staging protests.
Kamal Dev Bhattarai, Editor
