<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171148/636937739c7e80680e03fe38jpeg.jpg" alt="" width="1050" height="642"/><figcaption>BHANU BHATTARAI</figcaption></figure>Slippery slope is what banks have been treading on last few weeks by engaging in a price war on deposits. One can understand the soup they are in. Higher interest rates do not bring in significant new deposits, yet they are compelled to raise the rates to retain what they have.They will also be nervous about upcoming outflow from the banking system towards mid January when first tranche of annual corporate income tax is due for payment. Depositors are happy for now but imagine the plight of businesses dependent on bank debt.How long will this credit crunch last? Is there light at the end of the tunnel? Obviously, there will be some relief once government starts releasing payments to vendors and suppliers of various goods, services and developmental works – these are normally bundled toward latter half of a financial year. But judging by how banks behaved last three years, there is no guarantee that the crunch will not resurface next October.Read also:<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/opinion/banks-biting-off-more-than-they-can-chew/" target="_blank" rel="noopener">Banks biting off more than they can chew?</a>, Suman Joshi<a href="https://www.nepalitimes.com/here-now/why-does-the-credit-crisis-keep-repeating-itself/" target="_blank" rel="noopener">Why does the credit crisis keep repeating itself?</a>Band aid solutions will not work anymore. A strong medication must now be administered. It will be painful but, in many ways, <a href="https://www.nepalitimes.com/opinion/banks-biting-off-more-than-they-can-chew/">banks brought it upon themselves</a>. There are fundamental issues with our economy and banking sector that have direct relationships with monetary equilibrium.Here are examples of initiatives banks may consider without any support or concessions from the government or the central bank:Ration credit. Banks resorted to aggressive credit expansion following mandatory increase in paid up capital and in anticipation of rapid economic growth post installation of a stable government. But their reading of monetary environment proved wrong time and again. Deposit mobilisation has not kept pace nor aligned with growth in loan books. The only way forward is to direct credit flow only into areas that will help productivity, until such times that deposit-loan growth mismatch is corrected. In any case, our financial system is banking-heavy and alternative investment options like private equity and venture capital are emerging.Read also:<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://archive.nepalitimes.com/regular-columns/guest-editorial/banking-crisis-explained,1096" target="_blank" rel="noopener">Banking crisis explained</a>, Suman Joshi<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/crunching-the-numbers-on-credit/" target="_blank" rel="noopener">Crunching the number on credits</a>, Ramesh Kumar and Sikuma RaiExpansion of formal economy. There is no denying that the Nepali economy is growing, albeit driven mostly by private sector. Private wealth has multiplied in value and people are generally better off than they were. Whilst income disparity may have widened, there are reasons to believe that anticipated government spending on infrastructure and creation of enabling environment will help us continue to grow in the medium term. However, a significant part of the economy is in the shadows of formal transactions. Size of our informal economy is estimated at anything between 50 to 100% of the formal one. And we remain a predominantly cash economy. Regulations aimed at channeling financial transactions through banking institutions must be put to use effectively. Banks, on occasions, have resisted implementing regulatory guidelines on cash transactions for fear of losing deposits. We must expand the formal economy to have more money staying within the banking system. Banks can play a catalytic role in encouraging businesses to avoid cash payments.E-payments. <a href="https://www.nepalitimes.com/banner/nepals-budding-e-commerce-ecosystem/" target="_blank" rel="noopener">Digital banking</a> is also an important tool to help expand formal economy. Banks need to take their ongoing initiatives on digital channels to the next level through deeper collaboration with small businesses. For example, it should be possible for a bank (or a number of banks together) to pilot a No Cash Zone in say Durbar Marg area, or the restaurant district of Jhamel, by getting all shops or restaurants to sign up to a campaign to accept digital or card payments only. These are locations frequented by more affluent customers. It can gradually be replicated elsewhere. Obviously, if people can pay for basic purchases like milk and vegetables conveniently through a credit card or a digital wallet, they will carry less cash. That money will stay as bank deposits until spent.Cooling period. A casualty of rapid business expansion has been quality human resource within the banking industry. Growth in banks’ business and branch network create new positions which are often filled by people with lesser skills and experience. Many young bankers hop-scotch their way up through a number of banks and assume positions of responsibility without necessary skills and experience. Add to that generally aggressive lending behavior with excessive reliance on real estate collateral. Frankly, potential for sub-standard loan assets and operational risk in many Nepali banks is cringe-worthy. The IMF has already expressed their concern over quality and sustainability of unnatural growth achieved by the sector in recent years. Just like a cooling period has been made mandatory for CEOs, a mechanism must be put in place to arrest the tendency among employees at supervisory and managerial levels to move to another bank at short intervals for quick gains. Why would a bank invest on training and grooming an employee if only for another bank to offer him a higher position? Many organizations in the western world have stringent non-compete clauses in employment contracts.Writer’s note: I have been a career banker and spent 24 years in the industry. Some may think I’m critical of banks because I’ve retired from banking profession. But I’ve had a fulfilling banking career and I feel deeply indebted to Nepali banking sector for making me who I am. I strongly believe that this sector needs to be understood in correct perspective. Raising contemporary banking issues is my way of giving back to the industry. Also, it sometimes is not feasible for practicing bankers to voice their concerns. All said and done, banking remains the most transparent sector of the economy; its contributions to economic growth have been unmatched. I will continue to share my dui paisa to help regain its stature as a well-respected sector.Suman Joshi is an ex-banker and Chair of True North Associates, a private equity firm.

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Banking on a course correction

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171144/636936869c7e80680e03fde6jpeg.jpg" alt="" width="1500" height="976"/><figcaption>Photo: YUVARAJ SHRESTHA</figcaption></figure>At a ministerial review meeting last month, Prime Minister K P Oli warned bureaucrats he would not take “If’s and but’s” anymore in expediting infrastructure projects. This was his latest strict instruction to ministries to deliver results.Various Parliament committees have also issued similar instructions. Cabinet ministers and secretaries have repeatedly instructed government officials to be result-oriented. Yet, a report this week by the Office of the Auditor General shows that four months into the fiscal year, only 11% of the budgeted capital expenditure has been spent. More frightening: the government spent three times that amount on salaries, administrative costs an overheads.“It is clear that issuing instructions alone will not work,” says economist Keshav Acharya, “instead of more instructions we need to pinpoint obstacles to implementation of projects and remove them.”Read also: <a href="https://www.nepalitimes.com/editorial/communist-capital/" target="_blank" rel="noopener">Communist capital</a>, EditorialHowever, the government already has monitoring and evaluation mechanisms in place: at the Prime Minister’s Office, the National Planning Commission, and the finance and other ministries have their own project assessment committees. Most experts blame the lack of accountability in the political leadership and a lethargic bureaucracy.There was hope that with a strong government commanding a <a href="https://www.nepalitimes.com/editorial/two-thirds-empty/" target="_blank" rel="noopener">two-thirds majority in Parliament</a>, and devolution of power to local governments, things would change. But not only has the development budget remained unspent, but there has been shocking over-spending in current expenditure (administrative cost, salaries, vehicle purchases, or allowances on foreign trips). In the first quarter, the national government spent three times more on current expenditure than on capital disbursement.The government is spending on cars, but not on maintaining roads. Whatever little is disbursed is mis-spent on unnecessary projects like this road that cuts through an ecologically sensitive wetland in Pokhara Valley (above).Most provincial governments have managed to spend even less – only about 1% of their capital expenditure in the first quarter.The inability to spend the development budget has been a chronic malaise in Nepal, but this year, it is worse because of Kathmandu’s reluctance to devolve financial decision-making to local governments. This has triggered a <a href="https://www.nepalitimes.com/here-now/crunching-the-numbers-on-credit/" target="_blank" rel="noopener">credit crunch in the banking sector</a> creation and encouraged migration. At this rate the government will not meet its <a href="http://archive.nepalitimes.com/regular-columns/guest-editorial/guest-editorial-Nepal-economic-growth,923" target="_blank" rel="noopener">8% growth target</a> this year.Says economist Dilliraj Khanal: “The entire system of development administration has become so ineffective that unless it is overhauled, we will not see growth and progress.”Read also:<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/banner/calendar-of-economic-change/" target="_blank" rel="noopener">Calendar of economic change</a>, Om Astha Rai<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://archive.nepalitimes.com/article/editorial/editorial-Nepal-economy,3746" target="_blank" rel="noopener">White swans</a>, Editorial<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://archive.nepalitimes.com/regular-columns/guest-editorial/banking-crisis-explained,1096" target="_blank" rel="noopener">Banking crisis explained</a> , Suman Joshi

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Roadblocks

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171136/636934779c7e80680e03dff9jpeg.jpg" alt="" width="1400" height="1069"/><figcaption>Bhanu Bhattarai</figcaption></figure>Nepal’s banks have once more entered the dark tunnel of scarcity of loanable funds. Commercial banks have misinterpreted the monetary environment for three years in a row -- they lend aggressively during the first quarter, and run out of steam thereafter until the final quarter of the fiscal year.The seeds of the trouble were sown five years ago. As the IMF puts it in its most recent South Asia Regional Update, ‘Loose monetary conditions, along with a fourfold increase in banks’ paid-up capital in the two years to mid-2018 required by the Nepal Rastra Bank (NRB), have fueled a strong credit expansion. Private sector credit growth has averaged 22% (y/y) in the past two years, even as the NRB maintains ceilings on banks’ loan-to-deposit ratio and the loan-to-value ratio on car loans.’Nepal’s financial landscape is heavily skewed towards banking. According to a recent World Bank report, banks account for 87% of financial sector assets in Nepal. Private equity and venture capital space are still in nascent stages. The <a href="https://www.nepalitimes.com/banner/why-the-private-sector-is-spooked/" target="_blank" rel="noopener">private sector</a> thus largely depends on bank debts, and in their absence, businesses have had to postpone plans or slow down operations. This has resulted in increased cost or lost opportunities.Recurring <a href="https://www.nepalitimes.com/here-now/crunching-the-numbers-on-credit/" target="_blank" rel="noopener">credit crunches</a>, which last several months every year, have impacted the economy as a whole. Key responsible parties here are:<ul><li>Government of Nepal for its inability to spend on capital expenditures</li> 	<li>NRB for instigating the crisis and then offering regulatory forbearance that encourages banks to push prudential boundaries</li> 	<li>Banks which appear to be driven with the sole objective of servicing increased capital</li></ul>Nepal’s economic growth over past two decades has been largely led by the private sector, in spite of ineffective governments and inefficient bureaucracy. Banks should refrain from pointing fingers at NRB or the government. The NRB has not always been pro-active, its regulatory approach has often been ‘one step forward two steps back’. The government’s norm has always been to bulk up capital expenditure towards the end of the year. We want NRB and the government to be more responsive, but it will be a gradual process at best. And frankly, the banking business has thrived even in this environment, so let’s be reasonable.Read also: <a href="https://archive.nepalitimes.com/regular-columns/guest-editorial/banking-crisis-explained,1096" target="_blank" rel="noopener">Banking Crisis Explained</a>, Suman JoshiAs the most transparent sector of the economy, the onus is on the banks collectively to manage public perception and repair the community’s battered image. Here’s a list of items they need to consider:1. Anticipate better, and get your basics right. Will the market offer sufficient new deposits to fund growth in loan books? Nepal may be more stable politically, but with compromises from bureaucrats and politicians, it will be a while before their Key Performance Indicators align with Nepal’s aspirations for rapid economic growth. It is unrealistic, this early, to expect government spending to veer from tradition to follow a desired timeline that match banks’ need for new deposits.2. Who is winning that debate in the boardroom? Most banks appear to have adopted a strategy to grow lending books aggressively to meet shareholder expectations of return on equity. The impact of this on their lending behavior is worrisome. What is the quality of loan assets banks are booking when they are expanding at 22% while the economy grew at 3-4% annually over last few years? Also the continued contribution of banks to real estate buoyancy may someday come back to haunt them. Excessive reliance on real estate as collateral has affected a loan officer’s approach to lending. Under the current loan loss provisioning norms and multiple banking context, it is possible to keep masking bad loans, which raises doubts about quality of profits. The IMF has singled out this challenge and suggests: ‘Rapid credit growth underscores the need to accelerate banking sector reforms. Building on the recent amendments to the regulatory framework, loan classification, provisioning, and banks’ risk management practices should be upgraded.’3. Is it possible that many banks have bitten off more than they can chew by expanding their operations and branch network rapidly? Frequency of operational risk events suggests that quality of human resource and internal control mechanisms need significant improvement.Banks have finally acknowledged the need to adopt digital channels of delivery. Better late than never. Even so, there is little chance of sufficient investment happening here. It is not enough to link bank systems to a digital payment platform. A key driver for consumer uptake is a cultural shift within individual banks to champion digital banking services.Read also: <a href="https://www.nepalitimes.com/banner/nepals-budding-e-commerce-ecosystem/" target="_blank" rel="noopener">Nepal's budding e-commerce ecosystem</a>, Sikuma RaiClearly, Nepal is an over-banked economy with smaller banks struggling to stay relevant. Industry experts agree that there is a case for reduction in number of banks. Market prices are currently at interesting levels for more capable banks to consider acquiring other institutions. It may be easier said than done, but if there is an industry-wide resolve, the ducks will line up.Suman Joshi is a former banker and Founder and Chairman of True North Associates, a private equity firm.

Banks biting off more than they can chew?

Of the nearly 19 million eligible voters in next week’s election in Nepal, an estimated 5 million are abroad and cannot cast their ballots. Many others within Nepal must travel to their home districts, and might decide not to because of the cost.
Flights into Kathmandu these days are full of global Nepalis returning just to vote, but almost as many are leaving for overseas jobs. Most of those coming or going are in the 20-40 age group, and a majority want Nepal to see a change in leadership.
Bangladesh held an election this month in which citizens overseas could vote by mail.&nbsp;
“Bangladesh made maximum use of technology not just for campaigning but also for polling itself. We could have also managed this, so people within Nepal did not have to travel to their home districts to vote,” says Mohna Ansari, former head of Nepal’s National Human Rights Commission who was an election observer in Bangladesh.
A 3-day holiday has been declared so people can travel to their home constituencies to cast ballots. Even if there was not enough time to manage ballots for overseas Nepalis, it could have been done for Nepalis within Nepal.
Former Chief Election Commissioner Bhojraj Pokharel reckons that physical voting in countries with a large Nepali diaspora would have been a logistical nightmare, but in the PR system, using electronic voting machines or paper ballot could have been piloted in some places. It is not possible to manage the entire voting process until we introduce the internet voting system.
“First of all, there needs to be political will to bring the policy and be ready to undertake that level of investment and it is not a one-time cost,” Pokharel says. “A government formed by the GenZ could have atr least issed an ordinance ensuring this right, piloted out-of-country voting where possible, which could have built pressure for the future Parliament and the government. It would have given people hope. It is a lost opportunity.”
All major political parties called for voting rights for global Nepalis in their manifestos, but these very leaders blocked legislation allowing it despite a 2017 Supreme Court ruling out of fear that it would be anti-incumbent.&nbsp;
<h2>Why so late?</h2>
Bangladesh delivered election results in just one day, but the final results of Nepal's last local polls in 2022 including that of Kathmandu constituencies took nearly a month.
Acting Chief Election Commissioner Ram Prasad Bhandari said this week that the results of the First-Past-The-Post (FPTP) ballot counting would “likely” be published within 24 hours of the poll closing at 5PM on 5 March. But many are skeptical.
“I wonder if we lack the capacity or know-how to announce results as quickly as possible,” says Mohna Ansari.
Former Chief Election Commissioner Pokharel says manual ballot paper counting in Nepal is inherently slow because of the large numner of political parties and/or candidates on the ballot, the counting mechanism, the political behaviour of the candidates/parties and some managerial issues during counting.
“Our present policy is to count all the ballot papers at the returning officers' officies, located at the district headquarters. It requires collecting ballot boxes safetly first. This takes time, and there have been cases of ballot boxes being damaged or stolen during transport. In a few highly difficult, geographically remote polling centres, we use a helicopter or transport. But sometimes, accommodating the party and candidates' representatives remains challenging,” explains Pokharel. A solution could be counting ballots at the very booths where they are cast.
Another reason for the delay is simply the number of political parties, and the need for each ballot paper to be examined by booth representatives for consensus. In close races, the smallest difference can lead to tense situations, further delaying results, even though counting centres are protected by metal fencing so there is no disruption.
After this, then it is the turn of Proportional Representation (PR) ballots to be counted. Weeks pass by the time the results of candidates and parties are tallied and verified. But the most common delay is because election officers think ballot counting is a nine-to-five job.&nbsp;
“The efficiency of poll station officers is most important, and they are incentivised for this,” says Ansari, adding that counting can even start within an hour after voting closes.
In remote areas, local resources could be mobilised to make counting quicker, but there is a crisis of trust, adds Ansari.&nbsp;
That could be easily solved with electronic voting which the EC implemented in the 2008 polls but discontinued because political parties felt the machines could be hacked or manipulated.

Nepalis Select Who To Elect

On Saturday, Iran retaliated with missile strikes on Abu Dhabi, Dubai, Bahrain and Qatar, a region where there are an estimated 2 million Nepalis working to send money home. In addition, thousands of Nepalis were preparing to board flights to Kathmandu from West Asian cities this weekend to vote in the 5 March election. Many are said to be stranded at various aviation hubs. A Qatar Airways flight from Doha took off just before the air space was closed, while Air Arabia and Kuwait Airways have diverted or cancelled flights. Nepalis in the West Asian region said things were relatively calm where they were, although some heard loud explosions at about noon local time. In Dubai, some thought they were Ramadan fireworks.&nbsp; In Kuwait, nearly 2,000 Nepalis working in the US military base as security guards and cleaners were evacuated before the strikes. In Bahrain where the US Fifth Fleet naval base is located and which was hit by two Iranian missiles, workers contacted by Nepali Times said the situation was under control and the authorities had told everyone to stay indoors and not use highways. The conflict also coincided with the beginning of Nepal’s trekking and mountaineering season, and tourists were either on their way or planning to leave European and North American cities for Himalayan hikes. Most of them transit through Doha, Dubai or Kuwait and all three airports are closed. Turkish Airlines flights via Istanbul are still operating.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260228130212_ab5e132d56da1df6a3fb1b6919648f845a168ad2c51d79f7587fb85a6e913b97.png" data-media-id="editor_0" data-image-id="20260228130212_ab5e132d56da1df6a3fb1b6919648f845a168ad2c51d79f7587fb85a6e913b97" data-rendition-name="original" width="1864" height="826" loading="lazy" alt="Qatar and UAE airspace closed"> <figcaption>Qatar and UAE airspace closed. Credit: Flightradar24</figcaption> </figure>  However, the main impact for the world could be a spike in the price of petroleum products if the strategic Strait of Hormuz is blocked. China relies on Iranian oil for their refineries, and Nepal could be affected indirectly if the economies of its neighbours are hit. Nepal imports all its diesel, petrol, LPG and aviation fuel from India which sources it mainly from the Gulf, and until recently from Russia. Petroleum makes up 25% of the value of all imports, and that is more than Nepal earns from all its exports. Saudi Arabia this year overtook the UAE as the main destination for Nepali workers, with the number now totalling 400,000. There are said to be as many in the UAE, and another 350,000 in Qatar. There are another 100,000 mostly women in Kuwait, and 50,000 each in Oman and Bahrain.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260228130220_d24ae633ff84f283835434becdb2f1351f84c415ce87ca34378bd4e2669661b3.jpg" data-media-id="editor_1" data-image-id="20260228130220_d24ae633ff84f283835434becdb2f1351f84c415ce87ca34378bd4e2669661b3" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="West Asia Iran conflict"> <figcaption>Iran retaliated with missile strikes on Abu Dhabi, Dubai, Bahrain and Qatar on Saturday.</figcaption> </figure>  Nepal receives nearly $11 billion a year in remittances from overseas Nepalis (not counting India) through official channels, although the total is said to be much more. &nbsp;This makes up more than a quarter of Nepal’s GDP equivalent — one of the highest proportions in the world. More than half of the overseas remittances to Nepal comes from its workers in the Gulf, and it is the mainstay of the country’s economy. Nepalis in Saudi Arabia, Qatar and the UAE alone send home more than $3 billion a year, much of that helping support their families back home. An average Nepali worker in the Gulf sends home nearly $2,500 a year, and this is spent mainly for household supplies, children’s education and healthcare. There are also an estimated 7,000 Nepali caregivers and healthcare workers in Israel, and most of them are women. The Nepal Embassy has asked Nepalis in Israel to take caution and move to bomb shelters.

West Asia war and Nepalis

Nepal conducted its post-GenZ movement early election on Thursday in a peaceful and orderly manner, although turnout was below average in most districts. In fact, some constituencies saw voters reject the election, including in Arghakhanchi and Mustang.&nbsp; Preparation for the polls had to be done hurriedly after the September protests, with little time for political parties to work on their manifestos and campaign. But the election did push most parties to field younger, fresher and untainted candidates. This was more a <a href="https://nepalitimes.com/news/old-vs-new-vs-new">personality-driven election for the next prime minister</a> than a traditional parliamentary poll. The three main parties had pre-emptively announced their prime ministerial candidates although the chief executive is supposed to be decided by the largest party in the House.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026030514034_00809e41288d8dd46d1c8915e8e39fba09892049cfda37ba347e4b23989e94c0.jpg" data-media-id="editor_1" data-image-id="2026030514034_00809e41288d8dd46d1c8915e8e39fba09892049cfda37ba347e4b23989e94c0" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="Nepal elections"> <figcaption>Balendra Shah</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026030514034_d288f2cbe05c9c1376e315ea4f24528c5ee63766c978657aee8848eb9f87f4ea.jpg" data-media-id="editor_2" data-image-id="2026030514034_d288f2cbe05c9c1376e315ea4f24528c5ee63766c978657aee8848eb9f87f4ea" data-rendition-name="original" width="1600" height="1066" loading="lazy" alt="Nepal elections"> <figcaption>Gagan Thapa</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026030514034_3e2c1c4595b3aa3a4b0c6ca80aa6243e7c5c6e5d232c9295a380c565f85bd233.jpg" data-media-id="editor_3" data-image-id="2026030514034_3e2c1c4595b3aa3a4b0c6ca80aa6243e7c5c6e5d232c9295a380c565f85bd233" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Nepal elections"> <figcaption>K P Oli</figcaption> </figure>  Going by the noise on social media sites, there seemed to be overwhelming support for the Rastriya Swatantra Party (RSP) and its prime ministerial hopeful, former Kathmandu mayor <a href="https://nepalitimes.com/here-now/political-rap">Balendra Shah</a>. Standing against him in his home turf was K P Oli, of the UML who was forced to resign after the 9 September protests. Although the UML was fielding a tried and tested leader, the Nepali Congress (NC) has tried to carry forward the GenZ aspiration for change by putting forward its new party leader Gagan Thapa as its prime ministerial candidate. The lower-than-average turnout appears to have been driven by several factors: a public that is apathetic towards the older parties but is not yet convinced by the capability of the new. Limited time campaigning, and the over-idealistic manifestos of the parties does not seem to have fired up the electorate.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026030514038_50394032b053d433ed039aeb6d2c00a491d2a56b48a67e55e27fbffe7e4c7fe4.jpg" data-media-id="editor_5" data-image-id="2026030514038_50394032b053d433ed039aeb6d2c00a491d2a56b48a67e55e27fbffe7e4c7fe4" data-rendition-name="original" width="1280" height="854" loading="lazy" alt="Nepal elections"> <figcaption>Photos: ADITYA KHARE</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026030514038_84677be963084003c9a3d3fec0b8f95ab9b9db08c160f08c82aa03b02cb81260.jpg" data-media-id="editor_6" data-image-id="2026030514038_84677be963084003c9a3d3fec0b8f95ab9b9db08c160f08c82aa03b02cb81260" data-rendition-name="original" width="1280" height="854" loading="lazy" alt="Nepal elections"> </figure>  The low turnout is also a reflection of massive outmigration from rural districts, and the requirement that voters had to go to their own home constituencies to vote. And since the Election Commission could not organised ballot by mail or online voting, most of the estimated 4 million voters abroad also could not cast their ballots. To be sure, Nepalis abroad do represent an anti-incumbent vote bloc, and they have influenced families and friends back home through social media. The trend towards RSP and younger candidates is therefore a rejection of the old, and a protest vote against the legacy parties rather than full support for the new ones. Many migrants who were coming back to vote were also stuck in West Asia after the war broke out between Iran and Israel-US. Airlines have had to make drastic rerouting plans, and at least 21,000 flights have been cancelled. The conflict will affect petroleum imports including LPG and aviation fuel, if it continues any longer. Although our reliance on fossil fuels is declining, thanks to the increased electrification of transport and cooking, the shortage might be the first crisis for the new government of Nepal to tackle.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026030514038_986438337f2af271ab33d267560b8a25691a72292aae074488dc8e77f27cf9c1.jpg" data-media-id="editor_7" data-image-id="2026030514038_986438337f2af271ab33d267560b8a25691a72292aae074488dc8e77f27cf9c1" data-rendition-name="original" width="2048" height="1536" loading="lazy" alt="Nepal elections"> <figcaption>Polling in Sangjya. Photo: SHRISTI KARKI</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026030514038_dd2624707dae59f3b32fdebb402a3edfbfe99a4031f4f43dd4522ef7c58bfab0.jpg" data-media-id="editor_8" data-image-id="2026030514038_dd2624707dae59f3b32fdebb402a3edfbfe99a4031f4f43dd4522ef7c58bfab0" data-rendition-name="original" width="1523" height="2030" loading="lazy" alt="Nepal elections"> <figcaption>Photo: SUDIKSHA TULADHAR</figcaption> </figure>  There were 18.9 million registered voters nationwide, and the 60% turnout this time follows a declining trend, possibly making it the lowest in Nepal's polling history. In the first federal election in 2017, the turnout was an impressive 67%, which dipped to 61% in the 2022 election, although it was slightly higher in the municipal election. The EC has started counting the votes on Thursday evening and hopes to have the winners of the FPTP candidates out within 24 hours, however the tallies of the Proportional Representation ballots for the parties may take up to a week.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026030514034_8ff38b016d3cb75f27343ebe5d826f9201bfefffb6147dcbb0c415071ceb472d.jpg" data-media-id="editor_9" data-image-id="2026030514034_8ff38b016d3cb75f27343ebe5d826f9201bfefffb6147dcbb0c415071ceb472d" data-rendition-name="original" width="1616" height="1080" loading="lazy" alt="Nepal elections"> <figcaption>Ballot boxes being collected. Photos: AMIT MACHAMASI</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026030514034_6e6f6a792db2790533b7ef261e51dbdc07745ee96b80eaa8edc5abab4c7cfd21.jpg" data-media-id="editor_10" data-image-id="2026030514034_6e6f6a792db2790533b7ef261e51dbdc07745ee96b80eaa8edc5abab4c7cfd21" data-rendition-name="original" width="1616" height="1080" loading="lazy" alt="Nepal elections"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026030514034_75951a6583c17a741e3f9bd1abb796bbefed335cb6e694e5cddf519bfd0b9ed4.jpg" data-media-id="editor_11" data-image-id="2026030514034_75951a6583c17a741e3f9bd1abb796bbefed335cb6e694e5cddf519bfd0b9ed4" data-rendition-name="original" width="1616" height="1080" loading="lazy" alt="Nepal elections"> </figure>  Many have praised the interim prime minister installed six months ago by the GenZ movement, former chief justice <a href="https://nepalitimes.com/news/mission-nearly-accomplished">Sushila Karki</a> for conducting the polls on time as promised—a task that looked impossible until a few months ago, especially considering how Sri Lanka and Bangladesh suspended their electoral processes for a long time following their own youth uprisings. Balen Shah also took to his social media to commend Karki. He wrote: 'हजुरको नेतृत्वमा आज लोकतन्त्रले जितेको छ । <a href="https://www.facebook.com/hashtag/%E0%A4%86%E0%A4%AE%E0%A4%BE?__eep__=6&amp;__cft__[0]=AZYlGAeGzdXOS93cs8uOYTfW2l5YtXypnOpQOwFwdzWQQ2X_sLcqe_tqk518ULo-ftJnT5sCeT83L5zqMhzL09YgqxYLxDTzkHRSXiEtegetmKjz0ZbMz54cS2KFOKvPtqdHCZn4J6N0i4IvRDSXgHcCdLLd3kQYflb-Popks3zpA3O9Pqd4_Yh9efVCtMUPumJdN0l-y32bQLREPIMYm_mnJDYHbgoUy9iRUGMu1IOGHQ&amp;__tn__=*NK-y-R" target="_blank">#आमा</a>' (Democracy has won under your leadership. #mother). After casting her vote from Kathmandu on Thursday, Karki said: “I have fulfilled my responsibility towards the nation, let us hope the people’s wish for stability and prosperity will be fulfilled by the new elected government.”

Nepal votes with below average turnout

&nbsp;The BBC documentary <a href="https://www.youtube.com/watch?v=Idv4mMGHPLk&amp;t=173s">Shot Like Enemies: Inside Nepal’s GenZ Uprising</a> set off a frenzied debate in the public sphere, highlighting how sensitive international coverage of the country still is for Nepalis despite the national media doing its job. The investigative report focussed on the massacre outside Parliament on 8 September that led to the collapse of the government and paved the way for the election on Thursday.&nbsp; There was praise from supporters of the film and scathing criticism. Raw clips and leaked conversations showed how deliberately the protesters were shot in cold blood. Others saw a sinister conspiracy behind the release of what they regarded as a one-sided documentary just a week before the election. News in the foreign media of the election from Nepal was eclipsed this week by the war in West Asia. Nepali Times brings this selection of readings from the international press. For the complete articles go online or type in the links.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260303110320_be0e1078a3563f9433e73af614fc24db7fb0d42560c88d9522a8b17e944a3e3f.jpg" data-media-id="editor_1" data-image-id="20260303110320_be0e1078a3563f9433e73af614fc24db7fb0d42560c88d9522a8b17e944a3e3f" data-rendition-name="original" width="759" height="412" loading="lazy" alt="international coverage of Nepal elections"> </figure>  Read the <a href="https://www.aljazeera.com/features/2026/3/2/balen-shah-rapper-mayor-nepals-next-prime-minister">full story</a> here.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260303110320_493b9bca6cd984aa0d846ee577a3ef5aadc11086f6387c6b5b3f6d1c21b087a6.jpg" data-media-id="editor_3" data-image-id="20260303110320_493b9bca6cd984aa0d846ee577a3ef5aadc11086f6387c6b5b3f6d1c21b087a6" data-rendition-name="original" width="636" height="678" loading="lazy" alt="international coverage of Nepal elections"> </figure>  Read the <a href="https://www.thehindu.com/news/national/nepali-parties-promise-big-ahead-of-polls-however-concerns-remain/article70688498.ece">full story</a> here.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260303110320_b813313c898a1addf207ee663210ae8ebc0cd2f47ba8fb088530c445a733896b.jpg" data-media-id="editor_5" data-image-id="20260303110320_b813313c898a1addf207ee663210ae8ebc0cd2f47ba8fb088530c445a733896b" data-rendition-name="original" width="625" height="582" loading="lazy" alt="international coverage of Nepal elections"> </figure>  Read the <a href="https://www.bbc.com/news/articles/cgqgl3j5nj4o">full story</a> here.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260303110320_b643581c73d3e4babef9e1f89414b33864c2807a5488cd1c0d2de6d34755a42c.jpg" data-media-id="editor_7" data-image-id="20260303110320_b643581c73d3e4babef9e1f89414b33864c2807a5488cd1c0d2de6d34755a42c" data-rendition-name="original" width="701" height="813" loading="lazy" alt="international coverage of Nepal elections"> </figure>  Read the <a href="https://www.atlanticcouncil.org/dispatches/will-nepals-long-standing-nonalignment-survive-the-first-election-after-its-gen-z-uprising/">full story</a> here.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260303110320_934a42f754451d7354407413f3eaa0fd8fff798122f7e419fdaef82dfe1895ab.jpg" data-media-id="editor_9" data-image-id="20260303110320_934a42f754451d7354407413f3eaa0fd8fff798122f7e419fdaef82dfe1895ab" data-rendition-name="original" width="631" height="759" loading="lazy" alt="international coverage of Nepal elections"> </figure>  Read the <a href="https://news.mongabay.com/2026/02/in-nepal-polls-political-parties-root-for-mega-infrastructure/">full story</a> here.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260303110320_b5152c5addd7c988a4eb2bbd1dfbec78ea0113677792bf986b622dacbd9d2463.jpg" data-media-id="editor_11" data-image-id="20260303110320_b5152c5addd7c988a4eb2bbd1dfbec78ea0113677792bf986b622dacbd9d2463" data-rendition-name="original" width="961" height="803" loading="lazy" alt="international coverage of Nepal elections"> </figure>  Read the <a href="https://scroll.in/article/1090389/nepals-election-is-referendum-on-its-future-and-democracy-in-south-asia">full story</a> here.