A key feature of October was the political discourse and debates around the perceived political and economic crisis. As questions about government stability swirled, internal party rifts within the ruling coalition affected broader political arrangements, for example, government formation in Koshi Province. The struggle to form a new government in Koshi and provide stability showed differences among and within political parties.

Timeline of Key Events

 

Date	Event
October 14	PM Prachanda, and NC leaders Sher Bahadur Deuba and Shekhar Koirala sign an agreement expressing support and commitment to the ruling coalition.
October 2	The CIAA files a case against seven government officials, including the Finance Secretary Madhu Marasini, for their role in procurement of a payment gateway.
November 2	The Supreme Court annuls presidential pardon of a convicted murderer, generating questions about the role of the cabinet and the President’s office.

 

Politics

PM Prachanda has been communicating his fears about the perceived threat which he says has put him under “immense pressure, tension and challenge.” Questions about government stability have emerged due to challenges from within the NC. For example, after the party’s CWC, Gagan Thapa said that NC should withdraw from government and allow the socialist bloc to run the government² while Koirala has told PM Prachanda to “either reform or leave.”
In response to the pressures, including the process of truth and reconciliation, PM Prachanda is attempting to form a socialist bloc and unite former Maoist forces. Meanwhile, an agreement was signed between PM Prachanda, and NC leaders Sher Bahadur Deuba and Shekhar Koirala, expressing commitment to the current coalition regime.
 
Another source of worry for the big three leaders is the prospect of electoral results during the next round of elections scheduled to be held towards the end of 2027. Newly political actors like Rashtriya Swatantra Party (RSP) leader Rabi Lamichhane and Mayor Balen Shah are putting pressure on the big three parties with their statements and actions, which are receiving widespread resonance among the masses.
 
 

TRC

One of the issues pressing PM Prachanda is the completion of Nepal’s peace process through the amendment to the 2071 Act on Investigation on the Disappeared and Truth and Reconciliation Commission. The parliament is currently the amendment, which is expected to be ratified in the winter session of the parliament. UN General Secretary Antonio Guterres’ visit to Nepal put additional pressure on the Prime Minister to facilitate the pending peace process. Differences among top political leaders were visible in their briefing to the UN General Secretary. Pre-empting such pressure, PM Prachanda expressed commitment to TRC during his speech at the UNGA and sought international help.

Parliament

The parliament is discussing several important bills, but in the last five months, has been able to approve only one bill in addition to the three related to the annual budget. Among the important bills in the parliament is the School Education Bill, which has led school teachers to protest; there is a demand for the proposed bill to be taken to the people for wider discussion.
The education bill has provoked widespread discontent among parliamentarians, who are of the belief that the bill should be finalized only in accordance with the spirit of the constitution and federalism. Pointing out that keeping the district education office will not fulfill the purpose of the constitution and federalism, they have demanded that the local level be provided with sole authority up to the secondary level.
 

Economy and corruption

Regarding the economy, there were debates among political actors whether Nepal is facing an economic crisis and what their causes are. A feature often cited while discussing the economic crisis is the mass exodus of young Nepali people to work and study abroad.
 
Political leaders discussing the economy are saying brokers, middlemen and corrupt have weakened Nepal’s economy and if the current state of emigration continues Nepal will be devoid of young generation in 20 years. Former Finance Ministers are saying Nepal’s economy is worrying and needs transformation, not fixing.
 
Meanwhile, the CIAA has filed case against seven government officials for irregularities related to the procurement of a payment gateway. The Finance Secretary Madhu Marasini was also dragged into the case which has raised questions about the methodology and possible high- handedness of CIAA.