The September protests and worry about what is in store for Nepal in 2026 have added more uncertainty to a <a href="https://nepalitimes.com/here-now/nepal-needs-to-use-its-money-better">struggling economy</a>. Real estate transactions are stagnant, industries are operating below capacity because of declining domestic demand, the construction sector is slack, and investors are in wait-and-watch mode. In contrast, total bank deposits increased by Rs124 billion in the month before mid-October to Rs7.4 trillion. Official remittance inflows hit a record $13 billion in the past year. Nepal’s banks are flush with cash, with nowhere to put it. &nbsp; “The economy has flatlined. Non-performing assets are up, and real estate is at a standstill,” said Ashoke SJB Rana, CEO of Himalayan Bank.“There is excess liquidity in the market, with not many places to invest.” The main reason seems to be that both <a href="https://nepalitimes.com/here-now/relocate-reallocate-recover">domestic and foreign investors were spooked</a> by the targeted violence of 9 September, and are so worried about the runup to elections in March that they are holding on to their wallets. Not just businesses, the political uncertainty is keeping individuals &nbsp;from making big financial decisions.&nbsp; Sujeev Shakya, author of the <a href="https://nepalitimes.com/review/retrofitting-nepal-for-future-shocks">newly-released book Nepal 2043</a>, notes that the current doldrum is due to Nepalis playing it safe with their money. &nbsp; “People are holding on to their assets, and keeping their cash,” he says. “They are not investing in real estate, and avoiding buying gold because it is so volatile.”&nbsp; One sector in which banks have a lot of exposure is hydroelectricity, but even here recent floods have shown that this investment is <a href="https://nepalitimes.com/here-now/global-warning-bell-in-belem">increasingly at risk from climate breakdown</a>.&nbsp; Nabil Bank, with its focus on sustainable banking, for instance, has financed 56 hydropower projects with an installed capacity of 3,000MW.&nbsp; Says Nabil CEO Manoj Kumar Gyawali: “We cannot ignore unpredictable rainfall, increased glacier melt, more frequent glacier lake outburst floods, and landslides. These risks mean that while hydropower is essential, Nepal must diversify its energy mix." &nbsp;&nbsp; An open secret in the banking sector is that much of the liquidity is supected laundered money. Banks also have close ownership links with big businesses, and this means that even with a slow economy, banks lend to themselves or to each other to keep transaction volumes up.&nbsp; This is one reason for a high default rate. In the first three months of this fiscal year, 4.86% of bank loans were non-performing, meaning one out of about every 20 borrowers had defaulted. A year ago, this figure was 4.04%. Banks are therefore reluctant to lend, dampening the overall investment climate. &nbsp; Ironically, the high default rate is keeping mainstream newspapers in Nepal afloat at a time when the media business is also in crisis. Even as they suffer from a massive drop in advertising revenue, most daily newspapers often add pages to fit notices to borrowers about repayment, or announcements of bank auctions of collateral property. “While banks may be making a much smaller percentage of income compared to a few decades ago, they are still making a profit,” notes Shakya. “And so they are actually quite happy to be in this low-risk situation. Banks are conservative organisations after all.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251128041136_b33dd18d7ce221e273bd18d8a5c4ba4c9196f762b95b87fd24c60df6c2426065.jpg" data-media-id="editor_4" data-image-id="20251128041136_b33dd18d7ce221e273bd18d8a5c4ba4c9196f762b95b87fd24c60df6c2426065" data-rendition-name="original" width="1500" height="1022" loading="lazy" alt="Banks"> <figcaption>Illustration: BHANU BHATTARAI / NEPALI TIMES ARCHIVE</figcaption> </figure>  Among the most striking videos of the September protests that was shared globally by tens of millions of people was the Hilton and Hyatt hotels and the Ncell building burning. That recognisable international brands were targeted did not just cause huge losses to owners, but also damaged Nepal’s overall investment climate. Looting Bhat-Bhateni and homes of businessmen also sent a negative message, spurring capital flight.&nbsp; “That was very bad optics for potential investors, you simply worry about the security of your investment when you see things like that,” says Himalayan Bank CEO Ashoke SJB Rana.&nbsp; Nepal will graduate to Middle Income Country status next year, and donors are set to move from aid to private investment. While this could reduce misuse of money, it could dry up grants and soft loans to the health and education sectors.&nbsp; But the harm may go deeper than just the aftermath of the September events. The recent<a href="https://nepalitimes.com/news/double-trouble-with-taxes"> double taxation issue</a> involving the Dolma Impact Fund, and an earlier controversy over Ncell’s capital gains tax have also put Nepal’s business climate in negative spotlight internationally.&nbsp; The banking sector is firmly on the side of investors. Says Ashoke Rana at Himalayan Bank: “This is a tax regime, it is absurd to order the payment of these taxes retrospectively. When investors see that the rules of the game can change arbitrarily, they won’t really want to put their money here. ” &nbsp; One of the positive changes in the ways Nepalis are using money is digital transactions through QR codes and mobile banking. With smartphones making up 70% of all mobile phones, QR transactions are easy and have become a part of daily life. ONLINE BANKING&nbsp; Most businesses and ride shares have this feature on board, and people do not need to carry a lot of cash or multiple bank cards. But as digital payments become the norm, the days of free transactions may be coming to an end.&nbsp; “Right now these transactions are free for the most part. This is a subsidy by the banks, because of course, it does cost something to make sure the payments go through,” says Rana at Himalayan Bank. “However, as income decreases, banks may have to look for ways to make money, so they may charge small percentages on each QR transaction.”&nbsp; Rapid digitisation has changed not only how customers use money, but also how banks think about their offices. Himalayan Bank’s new Thamel branch, for example, has cancelled plans to redesign the office for 20 tellers.&nbsp; “We realised that people were able to do so much of what they wanted digitally that we plan to have only four tellers,” says Rana.&nbsp; But cutting down on facilities and staff has not always made for a better customer experience at some bank branches.&nbsp; Economist Sujeev Shakya conducts ghost customer experience checks for banks which involves decoys entering banks to evaluate what it is like for somebody to set up a bank account.&nbsp; The stealth missions found that standards of service have regressed, with banks having a working environment reminiscent of government offices.&nbsp; Shakya points out that the general experience of going to the bank should be much better. “Sometimes it’s a knowledge issue -- banks may try to ask for non-disclosure contracts even when they don’t know why they want them,” he says.&nbsp; Despite digitisation, many banks still require paper-based forms and documents. Bankers and customers alike note that it feels archaic, almost absurd, to have to carry multiple copies of documents, sometimes only in Nepali lokta paper, across several family members and fill out what seems to be the same form over and over even though digital files exist. That could soon be changing as well. As more and more Nepalis adopt the National ID, banks have adopted pilot programs that use it to create bank accounts, replacing the myriad documents that customers had to previously present to officials, making all banking transactions more efficient and less of a hassle for the customer.&nbsp; DIGITAL SECURITY As Nepalis move their cash online, digital infrastructure needs to become more secure as well.&nbsp; Bankers spend quite a lot to make sure necessary digital security infrastructure is in place, but some banks could be using pirated software which are not trustworthy.&nbsp; There has to be better regulatory oversight to prevent phishing and fraud as online payments and digital banking spread across Nepal.&nbsp; Banks must also be innovative and ambitious. Says Shakya: “Nowhere else in South Asia are bank loans such a high ratio of the nation’s GDP. &nbsp;This actually points to a well-developed financial system and we have to take advantage of it."&nbsp; Shakya also notes that many bank executives in foreign countries, like Myanmar are actually Nepali, and that banks from Nepal could use their staff and know-how to partner with or acquire banks overseas.&nbsp; While these innovations are all welcome, it is unclear how Nepal's banking sector can jumpstart economic activity in the country. Nepal’s political future looks uncertain and stability is not a guarantee.&nbsp; In the face of continuing progress in hydro electricity and the IT sector seems to be the way forward to stimulate the economy.&nbsp; The GenZ movement was a wakeup call also to financial institutions and the need for greater transparency. Nabil Bank CEO Manoj Kumar Gyawali says the September protests sent a clear message that young Nepalis want an end to corruption, good governance, and real opportunities at home: "The banking sector has a &nbsp;responsibility to direct more lending toward the real economy, sectors that create jobs, build productivity, and strengthen long-term growth," he says.&nbsp; Despite a subdued investment climate, Gyawali is optimistic. "I do see early signs of improvement. Lower interest rates are beginning to restore public and business confidence. Rising remittances provide a safety net and fresh investment capacity for households," he says. "If government capital expenditure continues to improve, it will boost private sector activity."&nbsp;

Vishad Raj Onta

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Cash rich, but poor

The recent Nepali Times Substack post titled ‘Unresident Nepalis’ made me realise I also belong to the category of Nepalis who are technically Non-resident Nepali (NRN), but want to ‘permanently reside inside Nepal’.&nbsp;
Although this was meant as a joke, it is ironic that many of those who go abroad long to come back home, and those who have not emigrated cannot think of a good enough reason to stay back in Nepal.&nbsp;
As soon as the NRN Citizenship was officially introduced in late 2023, I had tried to apply for one but was shut down before even submitting my documents as the district administration office firmly told my then lawyer that I needed to prove “तिन पुस्ता” proof of three generations of Nepalis from my father’s side.&nbsp;
My late father was from Japan and relinquished his citizenship to become a Naturalised Nepali citizen in 2006. Three years ago, I dismissed the rejection with the thought that I will try again later when government officials would gain more experience with such applications.&nbsp;
Now, with an ailing mother and an energetic toddler, I felt the need to act soon and reached out to a law firm that specialises in NRN citizenship applications. To my surprise, they were positive after reviewing my documents, although they did warn me that we may need to overcome some obstacles.&nbsp;
In 2023, I had applied in the district office where my father had received his naturalised citizenship, but now the suggestion was to try from the district where my mother had received her Nepali ancestral origin “बंसागज” citizenship.&nbsp;
The lawyers pointed to the NRN citizenship mandate which clearly states that it can be acquired via a Nepali origin father, mother, grandfather or grandmother. The firm helped arrange the necessary documents required and the first step was to get a “सिफारिस” &nbsp;recommendation letter from my mother’s ward office.&nbsp;
This was the first hurdle as the ward office was unsure if they could issue such a letter, so they checked in with their head office, and luckily we received the go ahead. After persistent follow up from the law associates, they were able to provide us with a recommendation letter and we filled out the application forms.&nbsp;
The law firm wisely suggested that I take the paperwork myself to my mother’s district office while they stayed in the background in case I needed help explaining my situation.&nbsp;
With a big smile and cheerful tone, I dutifully followed the process and to my surprise, I found most of the officials ready to help without creating unnecessary hurdles. The application has to be signed off by the Chief District Officer (CDO) or Assistant CDO and just when I thought wow, I am going to breeze through this, one officer noticed that my father’s naturalised citizenship was from a different district and told me that I should apply for my NRN from there.&nbsp;
I explained that my father has already passed away and as he was not originally a Nepali, therefore it is not possible for me to get my NRN from his documents, as the requirement is ancestral “बंसागज” citizenship. The officer then went to check with their seniors and later told me that I would need police verification as an extra precaution.&nbsp;
Off I went to the police headquarters where they issued a sealed letter to be given to the police station that was in the same vicinity as my mother’s ward office. At the station I was told to get four people who are not my relatives to testify our documents are true.&nbsp;
This process happened to be more stressful than dealing with the government offices. At first, it turned out that most of my mother’s old neighbours had already passed away or had citizenship papers from another area. Others confirmed their availability, but later had conflicting schedules. Luckily, one very helpful old neighbour was able to arrange for enough people to verify the documents.&nbsp;
Encouraged that the end of the tunnel was in sight, I went back to the district office with all the requested documents, and after some initial pushback, I was finally referred to meet the official who signs off the documents before it goes to the CDO.&nbsp;
As luck would have it, the officials were in a meeting that lasted more than two hours, and I had to give my mother her insulin shot and noodles from the cafeteria in the waiting area.&nbsp;
When we were finally able to meet the officer, he didn’t even look at my papers properly and started questioning my lawyers whether they had even read the law, how could I apply for Nepali citizenship when I already had a Japanese passport, etc. He somehow assumed that I was looking to get a normal Nepali citizenship from my mother’s side, and we informed him that I was only looking to get an NRN citizenship, after which his tone became more apologetic and said that he would need to look into the law more closely.&nbsp;
It had already been three full days of working through each step of the process, and I had no problem waiting another day for the conclusion.&nbsp;
Perhaps because this NRN citizenship is a fairly new law and perhaps a lot of NRNs apply from the Nepal’s embassies in their country of domicile, throughout my experience, officials kept on telling me that a case such as mine has not been processed before.&nbsp;
My case being that I have never had a Nepali citizenship, my father having a naturalised Nepali citizenship and my mother being the only 100% Nepali in the family. I kept on saying that just because it has never been done before does not mean that it cannot be done, and sure enough, the next day the officer signed off on my documents, even kindly saying that they should have highly respected my application upon learning about my late father and his contributions to Nepal.&nbsp;
Although the intricacies of the NRN citizenship law have not been fully hacked out such as the transfer of land ownership, it is definitely a positive step in securing the rights and aspirations of fellow NRNs as many would agree that no matter where we go, “यो मन त मेरो नेपाली हो!”&nbsp;
Sonia Miyahara, Managing Director of Hotel Everest View, Trans Himalayan Tours &amp; Trekking Pvt Ltd &amp; Himalaya Kanko Kaihatsu Co. Ltd.

How I got my NRN Citizenship in Nepal

Nepal showed inconsistent performance at the T20 World Cup 2026 in Mumbai with flashes of brilliance, but ultimately snatched defeat from the jaws of victory. The <a href="https://nepalitimes.com/news/rhinos-hit-the-ground-running">near-win against England</a>, a test cricket team by an associate country, in the opening game showed promise and suggested that Nepal’s cricket was on the cusp of glory. The Nepal Premier League and a flawless performance in the qualifiers had raised hopes that perhaps the Rhinos could progress out of the group stage. However, subsequent losses against newcomers Italy and the West Indies were harsh reality checks about the true state of the game: there is a lot of catching up to do in the present, and structural changes to put in place to win big in the future. Head Coach Stuart Law summed it all up quite harshly: “To go from that high to then go to an extreme low four days later, that’s not showing mental toughness.” He was worried about the distraction of social media and lack of focus among players: “When you’re in cricket, do your cricket. It’s a difficult one for me because I’m a social media dinosaur, I don’t understand it. You don’t have to keep showing your face if we’re winning games.” Finally a late-night win against Scotland on Tuesday redeemed some of Nepal’s pride. A strong opening partnership, yet another rugged Dipendra Singh Airee innings and Sompal Kami’s vindictive 3 for 25 helped Nepal beat Scotland in their last group game at the T20 World Cup.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260218010220_6ca369f6aefc8b653c2572467f050e96b029c96b71fed5fb4213898c7d469325.jpg" data-media-id="editor_1" data-image-id="20260218010220_6ca369f6aefc8b653c2572467f050e96b029c96b71fed5fb4213898c7d469325" data-rendition-name="original" width="1366" height="2048" loading="lazy" alt="T20 World Cup Nepal"></figure>  There was nothing riding on the game but honour, it means at least that Nepal do not crash out on zero. The game ebbed and flowed. Scotland started well and looked set to score 200 before collapsing in the end at 170. The Nepal batting effort also started out well, but in the middle overs after some wickets had fallen, it looked like the team was whimpering out again. Boundaries dried up, the run rate creeped up to almost 13, before Airee and Jha woke up and took charge and got to 171 with a few balls to spare. The dhaka topi crowd in the stands loved it. A big part of the reason Nepal’s performance was so much better against England than in the other games was the mentality going in. Against England, Nepal were clear underdogs and could play freely. Even a nasty defeat would have been forgiven. Against newcomers Italy, these roles were flipped. Fans and perhaps the players underestimated Italy, a nation much better known for its football culture. But it had put together a smart, experienced team made up of Italian cricketers with South African, Australian, English, Indian, Pakistani and Sri Lankan heritage. And Nepal may have won a series against West Indies last year, but against the full strength Caribbean squad they were easily beaten.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260218010220_dc27adaa2102b493f940a97f9572769e695c2c1c41c8558fc4c23657cc1c3261.jpg" data-media-id="editor_2" data-image-id="20260218010220_dc27adaa2102b493f940a97f9572769e695c2c1c41c8558fc4c23657cc1c3261" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="T20 World Cup Nepal"></figure>  Another key difference is that Nepal was batting second against England. Against Italy and the West Indies, having to set a target rather than chase it, there was miserable batting failure. The front of the order — openers Kushal Bhurtel and Aasif Sheikh, captain Rohit Poudel — did not pace themselves well. They started much too slow, not able to take advantage of the first six powerplay overs. Airee’s 58 and Sompal Kami’s 26 off 11 against the West Indies were the only innings of any note. The middle order of Bam, Jha, Aarif Sheikh was not much better. Nepal really struggled with the ball too in that game, taking the one wicket against the West Indies and none against Italy. Of course, it is a huge ask of your bowling attack to defend anything below 150 in the modern T20 game. There were questionable tactical choices. Early wickets are essential when defending a low score. But key wicket taker Sandeep Lamichhane was not brought on until the middle overs, when the opponents had made too many runs to feel any fear. So they took him on and he had a really poor tournament, going for a lot of runs.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260218010220_b0301b854ddf235e1bcb84e8ed58060a68c8f3f13d3bb5a7596e1f51184e0d03.jpg" data-media-id="editor_3" data-image-id="20260218010220_b0301b854ddf235e1bcb84e8ed58060a68c8f3f13d3bb5a7596e1f51184e0d03" data-rendition-name="original" width="1366" height="2048" loading="lazy" alt="T20 World Cup Nepal"></figure>  To captain Poudel’s credit, he acknowledged the bad showing against Italy: “It was not a 123 all-out wicket. We are professionals and not turning up for the game was disappointing.” Coach Law thinks that Nepal is going to get to the next step. If the team is ambitious, and hopes to compete at the elite level, then it cannot celebrate a loss against England. If it wants to win consistently, it has to shed the ‘Cardiac Kids’ nickname. It is better to win than to be fun to watch but lose. The T20 game is so brisk and so it is often won in the margins. Good catching and fielding can create momentum and save a team the 5, 10 runs that win the game. Nepal were uncharacteristically poor in the field against Italy and West Indies, often fumbling and leaking boundaries. Airee didn’t get any of his usual run-outs either. Nepal lost cheap wickets through run-outs and stumpings. All these unforced errors right through the match add up on the scoreboard.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260218010220_1630c283f277631dfbddd3d7f29b930b124bde97c8f6a411cc2e1d089e452f45.jpg" data-media-id="editor_4" data-image-id="20260218010220_1630c283f277631dfbddd3d7f29b930b124bde97c8f6a411cc2e1d089e452f45" data-rendition-name="original" width="1366" height="2048" loading="lazy" alt="T20 World Cup Nepal"></figure>  SKILL SET Mentality is important but sport performance ultimately comes down to skill. There looked to be a large gap, and perhaps one of the reasons is because the Nepal team is so full of all-rounders. Airee’s two-way performance is undeniable, but Bhurtel, Paudel and Karan KC do plenty of both too and they do not do it super well very often. If the team wants to get consistent, it must have consistent performers with the bat and ball. That calls for some of these players to focus completely on one skill over the other. You do not see openers bowling so much in the top teams as Bhurtel does. The main reason for this skill gap, and one of the hardest parts about being an associate nation, is how little cricket the members of the team play compared to the test nations. Said Stuart Law: “The longer format is where you learn how to play the game. The shorter formats are where you have your fun. We need some sort of multi-day games.”  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260218010220_652ef3ba6fceab394a94c18cabd322dca8ba4a1266557660064339de9169c91d.jpg" data-media-id="editor_5" data-image-id="20260218010220_652ef3ba6fceab394a94c18cabd322dca8ba4a1266557660064339de9169c91d" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="T20 World Cup Nepal"></figure>  The contrast in experience showed during the Italy game. Most of the members of the Italy team were well into their thirties, had played a high volume of domestic cricket and were more self-assured. So, while the young Nepali team were more athletic, they seemed to lack the skill and experience to know what to do when things were going wrong. The Italians seemed to go about their game with a lot more self assurance. In the long run, this means setting up grassroot structures, getting kids into formal training when young, and setting up a longer format domestic league. In the short term, CAAN could organise frequent series with other associate nations, and individual athletes could go play long form club cricket abroad. Surely some team in the world has to have a spot for a player like Airee, for example. It has been Airee’s tournament. Scores of 44 v England, 58 v West Indies, and now a match-winning 50 against Scotland that gives the travelling Nepali support something to cheer for. The tournament could have been a lot more, but it is wholesome to end on a win.

Nepal goes in and out of T20

Besides being an election year in Nepal, 2026 is also the year of anniversaries. It is exactly 30 years since the Maoists launched their armed struggle on <a href="https://nepalitimes.com/editorial/13-february">13 February 1996</a>, and it was on 27 April 2006 that the ceasefire came into effect after a month of massive pro-democracy protests.
Alas, <a href="https://nepalitimes.com/editorial/not-ever-again">three decades on</a>, the decade-long conflict that claimed 17,000 lives has been <a href="https://nepalitimes.com/banner/ghosts-of-war">air brushed from our history</a>. For the survivors, and the families of those disappeared and killed, memories of loss and suffering are fading. The party that fought the war in Mao’s name has dropped it.
It is important on this day to remember not to forget that <a href="https://archive.nepalitimes.com/news.php?id=3203">violent decade</a> -- so that it does not happen again, and so the youth movement that has led to this election will also not be in vain.
The 8 September 2025 rally, <a href="https://nepalitimes.com/news/nepal-s-8-september-massacre">the massacre that followed</a>, and the nationwide mayhem and carnage the next day were largely a result of public anger boiling over. Nepalis had been let down repeatedly by rulers promising revolution in the name of the ‘people’: from the 1990 People’s Movement I, to the Maoist ‘People’s War’, and the 2006 People’s Movement II.
There are some positive residual effects of the insurgency. One-third of the Maoist militia was <a href="https://archive.nepalitimes.com/article/nation/Nation-sibling-war-juna-rai,731">composed of women</a>, this empowered not just the female guerrillas themselves, but indirectly made a whole generation of young women aware of their rights.&nbsp;
The peace process itself resulted in the Maoists entering the democratic mainstream, and the induction of many of the guerrillas into the national army – a rare occurrence after a conflict.
The ceasefire was followed by an interim government, and the first elected <a href="https://nepalitimes.com/editorial/the-letter-and-spirit">Constituent Assembly</a> abolished the monarchy in 2008. Deadlock over the model of federalism meant a second election had to be held in 2013, and the new Constitution <a href="https://archive.nepalitimes.com/regular-columns/by-the-way/new-constitution-should-adopt-inclusive-democracy-with-federalism-republicanism-secularism,538">finally promulgated in 2015</a>.&nbsp;
That statute was supposed to devolve political decision-making away from Kathmandu to autonomous provinces, improve inclusive representation of women and hitherto excluded castes and ethnicities at all three levels of government, ensure accountability and good governance to generate jobs and lift living standards.
There were seven governments in ten years after 2015, and tottering coalitions one after another failed to fulfil any of those provisions in the Constitution. There were subliminal gains in representation of women thanks to affirmative action, but as this election shows, women candidates are still used as proxies by patriarchal parties.&nbsp;
Since the two warring sides of the Maoist war both became the state, sharing power in dozens of coalition cabinets since 2006, they colluded to bury the <a href="https://nepalitimes.com/news/nepal-s-unpunished-war-crimes">transitional justice process</a>.
The former supreme commander of the Maoists Pushpa Kamal Dahal (Prachanda) has become prime minister three times in the last 20 years. He is contesting this election from Rukum East, where he marked the 30th anniversary of the start of armed struggle on Friday.
The word ‘Maoist’ has been erased from the Nepali Communist Party which Dahal formed with more than a dozen other smaller leftist outfits. His main rival, Janardan Sharma, quit the Maoists and is standing for elections in Rukum West.
Both former comrades are competing for the hearts and minds of people of this former base area from where the Maoists went on warpath on 13 February 1996 by attacking a police station in Athbiskot, and simultaneously on targets in <a href="https://archive.nepalitimes.com/news.php?id=7812">Holeri of Rolpa</a>, Sindhuli and Gorkha.
The former ideologue of the Maoist party, <a href="https://archive.nepalitimes.com/article/editorial/20-years-wasted-in-war,2850">Baburam Bhattarai</a>, was the architect of the revolution while Dahal was the <a href="https://archive.nepalitimes.com/news.php?id=6369#.Y-XIii8w1KM">executor</a>. Bhattarai submitted a list of 40 demands to the <a href="https://nepalitimes.com/editorial/deubas-denouement">Sher Bahadur Deuba</a> (during his first tenure as prime minister in 1995) but did not wait for a reply before launching the armed struggle.
The Maoists felt that the constitutional monarchy after 1990 was too feudal, and a patronage-driven parliamentary system too slow to bring about change. Besides, the democratic parties were accused of using state security to prevent Maoist candidates from winning elections.
The Maoists followed Mao’s Red Book to the letter, attacking police stations, looting weapons and targeting local elected governments, eliminating ‘class enemies' with summary executions.&nbsp;
They destroyed telecommunication towers, highways, bridges and airfields in remote areas. Threats forced health posts, schools, post offices to be withdrawn from areas where people needed them the most. The country’s development was pushed back decades.
Nepal in the early 1990s was ripe for revolution. There was inequality, social injustice, exclusion, and the political parties in Kathmandu were too busy squabbling to do their job. The Maoists wanted an end to the monarchy, but in 2001 the monarchy imploded with the royal massacre.
ABSOLUTE POWER
King Gyanendra succeeded his <a href="https://archive.nepalitimes.com/news.php?id=8338">murdered brother</a> to the throne, and took the country back to absolute rule with a military-backed coup in 2005. Within a year, street protests forced him to step aside. And by 2008, it was too late to save the monarchy.
We can look back as far as we want to the roots of the Maoist conflict. It can be blamed on elected leaders post-1990 who abandoned the people once in power, the 30 years of partyless Panchayat system that stifled dissent and let social pressures build up, or even 100 years of Rana rule.&nbsp;
It was the prolonged indifference on the part of successive rulers in Kathmandu that fed public discontent. These accumulated grievances were also the reason for the <a href="https://nepalitimes.com/news/nepal-s-gen-z-protest-turns-deadly">September 2025 events</a>.&nbsp;
During China’s Cultural Revolution, Mao Zedong said: ‘The old has to be uprooted to be replaced with the new’, and that could almost be the anthem of the GenZ movement and this election.
The objective conditions that drove the Maoist insurgency 30 years ago are still evident today. And much will depend on the government(s) that will be formed after March.&nbsp;

Remembering not to forget

As Nepal mourned its dead in the September violence and public buildings smouldered, former Chief Justice Sushila Karki was installed as prime minister to pull the country back from the brink.
She gave herself six months to conduct elections, and has gone about achieving that goal with a single-minded sense of purpose. Supporters praise her poise and decisiveness, while others fault her for not pursuing justice for the death and destruction, and postponing the release of the inquiry commission yet again.&nbsp;
But that also highlights her steadfastness to hold free, fair and peaceful elections on 5 March, and not allow it be derailed by distractions. It has not been easy for the 73-year-old — she has had to balance radical calls for scrapping the Constitution while appeasing entrenched leaders of established parties.&nbsp;
Karki has displayed patience, determination, foresight, and, above all, a deep love for country. It has been a lonely struggle, no doubt.
The very youth who voted for her on Discord demanded her resignation, &nbsp;she had to cajole discredited leaders to take part in polls, and she was not dismayed when her chosen ministers abandoned the government to contest polls. And this is not to mention geopolitical demands that must be happening behind the scenes.
This being Nepal, there is endless speculation about who is ‘pulling the strings’. Yet her record both as chief justice and interim prime minister offer ample evidence of integrity and principled leadership.
Regardless of geopolitical interpretations of her intentions, Karki is a Nepali leader through and through who has lifted herself from the highest judicial office to the highest executive position, adhering to both mandates.
Organising national elections within five months was a formidable task, which many doubted — and are still doubting — can be accomplished. Karki has worked closely with the Election Commission, security forces, and mainstream political parties to ensure participation.&nbsp;
In doing so, she has set an example not only for Nepal but for South Asia. Bangladesh, which went through its own GenZ protest in 2024 and held elections on Thursday offers a study in contrast. The Awami League and its exiled prime minister who was deposed have been banned from front contesting, there is growing influence of the Jamaat-e-Islami-led alliance.
Her first address to the National Assembly on 2 February was characteristically candid. She laid out the facts sequentially and emphasised Nepal’s most urgent priority: holding elections on schedule and transferring authority to elected representatives. Timely election was the only constitutional path forward, she said.
She acknowledged that GenZ activists had pressured her to appoint certain individuals to her Cabinet. She had to personally persuade Kulman Ghising, Mahabir Pun, and Jagdish Kharel to join her Cabinet. Others she was advised to induct turned out to have controversial pasts, and she was forced to rescind the nominations. She admitted Pun resigned as education minister because he could not get legislative proposals passed.
Educated, professionally accomplished, known for her frugal lifestyle, Karki has distanced herself from the culture of excess often associated with power, and has turned down multiple invitations for foreign junkets.
Her meeting with editors at Baluwatar in December was a breath of fresh air for Nepal’s jaded journalists used to excessive displays of power and pomp. Her frankness about threats from the GenZ and pressures from disgraced party leaders drew gasps.
In the last five months, Karki has attempted to restore a sense of governance anchored in constitutional duty rather than partisan ambition. But Nepal’s problems have been decades in the making, and it would be unrealistic to expect an interim government to solve all of them at once.
Nepal now stands at a crucial juncture. Leadership alone cannot safeguard democracy, elections alone do not guarantee legitimacy. That must come from delivery, performance and accountability. Citizens casting informed votes on 5 March will determine whether Karki’s handover to leaders capable of placing national interest above party and personal agendas.
In a region where democratic transitions often falter, Nepal has another chance to demonstrate that home-grown movements, constitutional discipline, and principled leadership can coexist.&nbsp;
Whether this moment becomes a turning point depends not only on one leader, but on the collective resolve of the nation and polity.
Watch a timelapse video of how Anup Tamu drew this portrait of Sushila Karki, <a href="https://youtube.com/shorts/tchdBwBZDJE?si=PD9Sd3__t-1-lILh">here</a>.&nbsp;

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