situation of nepal political


  Political of Nepal 




As of February 2025, Nepal's political landscape is marked by significant developments:

Government Formation and Stability

In July 2024, the Nepali Congress (NC) and the Communist Party of Nepal-Unified Marxist Leninist (CPN-UML) formed a coalition government, aiming to amend the constitution and ensure political stability. This alliance led to the ousting of Prime Minister Pushpa Kamal Dahal 'Prachanda' and the establishment of a new government under the leadership of KP Sharma Oli. The coalition partners agreed to rotate the prime ministerial position, with Oli leading for the first two years before handing over to NC President Sher Bahadur Deuba. This power-sharing arrangement extends to provincial governments, where the two parties have agreed to lead three provinces each. However, concerns persist about the potential for instability due to the planned leadership rotations.

Foreign Relations and Infrastructure Projects

In December 2024, Prime Minister Oli visited China, marking his first international trip since resuming office. During this visit, Nepal and China signed a framework agreement under the Belt and Road Initiative (BRI), aiming to advance infrastructure projects such as road upgrades and transportation corridors. This agreement seeks to address previous challenges, including the lack of a cooperative framework and political consensus in Nepal. Despite concerns over debt sustainability raised by coalition partners like the Nepali Congress, China has extended significant funding to Nepal, including $216 million for the construction of an international airport in Pokhara.

Conversely, in February 2025, the United States suspended two major infrastructure grants to Nepal following an executive order by President Donald Trump, which imposed a 90-day pause on foreign development assistance. These grants, totaling $500 million under the Millennium Challenge Corporation (MCC), were intended for a power transmission line and road improvement projects. The suspension has led to uncertainties regarding the future of these projects and has raised concerns about Nepal's reliance on foreign aid for infrastructure development.

Domestic Policies and Reforms

The Oli-led government has emphasized policy and legal reforms to enhance the business environment and stimulate economic activities. In February 2025, Prime Minister Oli addressed the House of Representatives, highlighting the government's commitment to making the allocated budget priority-based and result-oriented. The government aims to address economic challenges through economic reform programs, expedite development activities, improve service delivery, and maintain good governance. Additionally, efforts are underway to amend the constitution and electoral laws to ensure political stability, as the current mixed electoral system has often resulted in fragmented mandates and coalition governments.

Overall, Nepal's political situation in early 2025 is characterized by efforts to maintain stability through coalition governance, navigate complex foreign relations impacting infrastructure development, and implement domestic reforms to foster economic growth and good governance.

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