KATHMANDU — A month after a youth-led uprising toppled Nepal’s elected government, the interim administration is struggling to contain simmering unrest, with Gen Z protesters becoming increasingly divided while major parties face calls to transfer power to younger leaders, as the path to general elections becomes bumpier.
The government headed by former Chief Justice Sushila Karki took power in mid-September after a wave of Gen Z protests — first sparked by a brief social-media ban — swelled into a nationwide revolt against corruption and nepotism. At least 76 people were killed during the two-day protest, which saw government buildings and politicians’ homes torched, forcing out Prime Minister K.P. Sharma Oli.
The administration has yet to fill key ministries, including foreign affairs, defense, health and tourism. Questions have been raised over general elections set for March 5, with Oli’s Communist Party of Nepal (Unified Marxist-Leninist), or UML, the former ruling party, refusing to commit.
Ajaya Bhadra Khanal, Karki’s chief adviser, told Nikkei Asia earlier this week that Karki would retain the foreign affairs and defense portfolios while seeking “neutral and competent people to lead other ministries.”
What makes the situation difficult for the new administration is the division among Gen Z protesters. Though the movement emerged organically and without a leader, fissures have appeared after the government invited them to talks last month.
One group loosely led by Raksha Bam, Yujan Rajbhandari and Pradip Gyawali backs returning power to an elected government. Another, led by Sudan Gurung, a former DJ who founded the volunteer group Hami Nepal after the 2015 earthquake, demands the arrest of the former Prime Minister Oli and the home minister Ramesh Lekhak. A third faction is calling for the direct election of the prime minister — a radical constitutional shift for Nepal’s parliamentary system.
Nepal’s Gen Z demonstrators in Kathmandu hold placards behind barricades during a protest against corruption and the government’s decision to block several social media platforms in September. © Reuters
Khanal acknowledged that their demands are wide-ranging.
“We can see these groups evolving around identifiable leadership,” he said. “We are in dialogue with several of them, assessing their agendas, their networks, and their representatives. Based on that, we’ll engage with key figures capable of representing broader concerns.”
Meanwhile, the major political parties, such as UML and the Communist Party of Nepal (Maoist Centre), are resisting change amid demands within their ranks to hand power to younger leaders.
While the Maoist Centre has said it will take part in the elections, the UML opposes it.
“Oli [of the UML] remains determined to hold on to power and his party lacks any successor with charisma or mass appeal,” political analyst Bishnu Sapkota told Nikkei Asia. “The UML simply has no younger generation — everything begins and ends with Oli and former president Bidhya Bhandari.”
Within the Maoist Centre, potential rebels such as Janardan Sharma, a former finance minister, lack both organizational and public support. “He could form a breakaway faction, but it would dissipate within months,” Sapkota said.
By contrast, the Nepali Congress may soon face an internal shake-up. Former Prime Minister Sher Bahadur Deuba and his wife, Arzu Rana Deuba, the former foreign minister who was assaulted when protesters stormed their bungalow, appeared at a party meeting on Tuesday.
Deuba announced that he would hand over party chairmanship to Vice Chairman Purna Bahadur Khadka, paving the way for a leadership transition. The party’s convention is expected to take place by mid-December.
Interim Prime Minister Sushila Karki attends the oath-taking ceremony of her four newly appointed ministers late September after the anti-corruption protests.
Against all these uncertainties, Karki’s technocratic government is tasked with restoring public confidence, ensuring accountability for deaths and destruction, and preparing for elections. Faced with these challenges, it is struggling to cement power.
“The interim government was accidental,” Sapkota said. “Those who came to lead it had no political preparation. While they may have integrity, politics demands an entirely different skill set — and I’m not sure how the prime minister will fare.”
The government also faces pressure to punish those behind the violence, even as security chiefs warn that politically driven arrests could reignite unrest. A judicial inquiry led by retired judge Gauri Bahadur Karki is investigating the killings, but the administration remains torn between calls for swift justice and the need for stability.
Khanal said the government was following due process. “Arrests shouldn’t be made just for the sake of arresting someone — they must stand on legal ground. The rule of law has to guide every action of this government,” he said.
Police detained at least 18 protesters last week as tensions flared again in Kathmandu, reflecting public frustration over the slow pace of accountability for the killings of protesters last month.
The instability is already taking a toll. The World Bank has cut Nepal’s growth forecast to 2.1% for the 2025-26 fiscal year, down from its previous forecast of 5.2%, citing political paralysis and weak investor confidence. Foreign investment approvals have slowed sharply, and tourism — a key source of foreign exchange — is facing mass cancellations amid safety concerns.
The article was published in the asia.nikkei
