<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141148/636d01229c7e80680e0a3614jpeg.jpg" alt="" width="1050" height="637"/><figcaption></figcaption></figure>Nepal Rashtra Bank’s (NRB) tightness on share collateral, signs of a lack of liquidity and the opening up of other investment avenues post-lockdown are some of the factors behind the share market’s sharp decline of late.On Sunday, <a href="http://www.nepalstock.com/" target="_blank" rel="noopener noreferrer">Nepal Stock Exchange (Nepse)</a> recorded the highest-ever fall in its history after the market dropped by 5.03% in just the first two hours of trading. A 40-minute long circuit break was imposed, as 60 companies saw their share values decline by 10%, and the Nepse index to 2782.52 points.A slight recovery was soon posted, but Nepse still fell by 3.7% from the previous day, losing 108.26 points from 2928.8 points to an end-of-day total of 2811.16 points. By day’s end, 31 companies lost up to 10% value on their shares.Despite the fall in the index, there were as many if not more people trading shares and the volume of transactions were unaffected, with 23 million 79 thousand shares of 223 companies clocking in Rs11.24 billion in turnover.The current dip in the share market is in sharp contrast to the <a href="https://www.nepalitimes.com/latest/despite-politics-nepals-stock-market-is-bullish/" target="_blank" rel="noopener noreferrer">boom during the lockdowns and prohibitory orders</a> when other investment sectors remained shut, allowing big and small investors to trade from home with the online trading system flourishing unabated.Bank interest rates also fell as the investment sector shrunk during the closures. As demand for credit in other sectors began to decline, banks also increased their investments in equity securities. As a result, the stock market traded at a record high with a turnover of Rs19.55 billion and Rs21.64 billion on 14 May and 15 July respectively.However, since then with the reopening of other sectors, the demand for bank loans has increased. There are indications that the lack of investment capital will be repeated. As such, banks are preparing to raise interest rates.The share market’s decline has been particularly concerning over the last week, falling from 3044 points to 2817 in five days. This has resulted in a loss of Rs1.5 trillion, down to Rs39.44 trillion on Sunday from last week’s Rs40.89 trillion.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141148/636d01249c7e80680e0a3615jpeg.jpg" alt="" width="623" height="351"><figcaption></figcaption></figure>Sunday’s fallout also prompted the Capital Market Reform Struggle Committee, led by investor Ram Krishna Dhakal, to demand the resignation of NRB governor Maha Prasad Adhikari for activities that have negatively influenced the share market.The committee has put forward 15-point demands including the limit of Rs120 million on margin loans brought by the central bank through monitory policy to be scrapped, the cap on dividends distributed by microfinance companies to be removed and the provisioning be modified.As per the NRB’s new stricter monetary policy, banks and financial institutions are allowed to give a maximum loan of Rs40 million to an individual or institution on the security of shares. Similarly, an investor can take a loan of only Rs120 million by pledging shares.Read also: <a href="https://www.nepalitimes.com/latest/instability-to-cost-nepal-dear-in-2021/" target="_blank" rel="noopener noreferrer">Instability to cost Nepal dear in 2021</a>, Ramesh KumarThe NRB didn’t only tighten its monetary policy, but all subordinate banks were also placed under strict restrictions, effectively banning them from share trading.To be clear, the NRB’s austere policies have caused the market correction by dislodging the confidence of large and institutionalised share traders, says share market analyst Mukti Aryal.The <a href="https://www.nepalitimes.com/here-now/insider-trading-taints-nepal-capital-market/" target="_blank" rel="noopener noreferrer">Sarbottam Cement share scandal</a>, in which Nepal Securities Board Chairperson Bhishma Raj Dhungana and Nepse CEO Chandra Singh Saud engaged in insider trading on IPOs, had recently dented confidence in the fledgling stock market.But the only way forward is for the NRB to examine its restrictive policies, adds Aryal: “The tightening of stock pledges is the chief reason for the market’s decline. Pledging one’s own assets as securities for trading should not be restricted.”However, instead of agitating against the regulatory bodies, investors themselves must adopt careful share-trading practices, says a share broker, adding that it is natural for the market to fall after being propped up by companies that very recently had bad portfolios.“If investors had invested in companies with solid portfolios, none of this would be happening,” he says. “Instead of investing smartly in profitable companies, investors hedged their bets on hydropower projects, development banks and finance, following the market rumours rather than prudent investment.”Translated by Kaustubh Dhital from the <a href="https://www.himalkhabar.com/news/125732?fbclid=IwAR1n22ltLRWRA6Yi8Lg23aGzl8ZLzgKvIlBx_UTy1R_3m9GZlgogZ9Y4F80" target="_blank" rel="noopener noreferrer">Nepali language original</a> in Himal Khabar.

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Inside Nepal’s biggest stock market tumble

<img width="1508" height="900" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141124/636cfbb39c7e80680e0a0b49jpeg.jpg" alt=""/>The heads of the Nepal Stock Exchange (Nepse) and Securities Board of Nepal (SEBON) as well brokers and industrialists have been found to have profited from insider training and conflict of interest, eroding the <a href="https://www.nepalitimes.com/latest/despite-politics-nepals-stock-market-is-bullish/" target="_blank" rel="noopener noreferrer">public’s trust in the country’s stock market</a>.   Documents show that they were engaged in ‘front running’ in contravention of existing rules governing the role of regulators and brokers in stock valuation and transactions. An investigation by <a href="https://www.himalkhabar.com/news/125318">Himal Khabar</a> this week found Nepse CEO Chandra Singh Saud and SEBON Chair Bhishma Raj Dhungana bought shares for family members in Sarbottam Cement at far lower prices just before its Initial Public offering (IPO). The board of directors of Sarbottam Cement decided to sell 6 million shares in the company through a book building process. The shares were valued at Rs750 per unit to raise Rs4.65 billion, of which only 12.9% were included in the initial public offering.  However, many of the shares were sold pre-IPO for less than Rs250 per unit even before the public offering, and others are believed to have been given for free as ‘presents’ to important people. Benefiting were close family members of SEBON’s Chair Dhungana, Nepse CEO Saud, as well as Global IME Capital which was handling Sarbottam’s IPO. <img width="2284" height="1512" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141124/636cfbb69c7e80680e0a0b4ajpeg.jpg" alt="">Says share market expert Rabindra Bhattarai: “This is a clear case of an attempt by insiders to unethically influence the market price of a company offering premium shares.”Global IME Capital’s parent company Global IME Bank is headed by Chandra Dhakal, who is vice-chair of FNCCI and is also a member of SEBON. Dhakal’s brother has 30% share in an investment company that bought some of the shares. Chandra Dhakal therefore had a conflict of interest in being in a position to be the regulator in the sale of investment vehicles in a company that his family had invested in. Documents show that Saud and Dhungana also used their positions to leverage cheap purchases of the shares in the cement company, while Sarbottam benefited by getting permission to enter the share market, illegally influencing the regulators’ decision-making. In the eyes of the law, this is equivalent to corruption and considered a crime.  <img width="1028" height="718" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141124/636cfbba9c7e80680e0a0b4bjpeg.jpg" alt="">“For a CEO of the Stock Exchange or its employees to use information about an IPO to personally buy shares is a direct and serious conflict of interest,” explains capital market expert Mukti Aryal. “Buying shares in a company that is going to be traded on its own platform opens up the possibility of share price manipulation. In a case like this the SEBON official has to declare a conflict of interest and step down.”Front running is a form of insider trading where those with knowledge of a company’s share value use it to make a personal profit at the expense of the public. For example, it is ‘front running’ when a stockbroker receives customer orders to purchase a large stock in a company, but instead speculates the value of the shares and buys or sells off shares for themselves accordingly. Such actions are not just unethical, but can even be considered a financial crime. Nepal’s Securities Act 2007 Clause 91 codifies into law measures against front running, prohibiting SEBON staff from divulging and profiting off any inside information received by their position. Regulatory authorities are also not allowed to be in contact with company executives, founders and managers or exchange any benefits with them.  <img width="2288" height="482" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141124/636cfbbd9c7e80680e0a0b4cjpeg.jpg" alt=""><a href="https://www.himalkhabar.com/news/125244">Nepse CEO Saud told Himal Khabar</a> he did nothing wrong, and admitted that he bought shares in Sarbottam at Rs250 per unit in the name of his wife, Sushila Kumari Bohara, but only after the cement company’s book building process had started. “It is only prohibited to buy and sell in the secondary market, there are no restrictions on buying shares in a company’s initial public offering,” Aryal told the magazine.However, Saud has been accused of purchasing the shares at a price lower than the company’s book-building, or share price evaluation.  <figure><img width="2000" height="1026" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141124/636cfbbf9c7e80680e0a0b4djpeg.jpg" alt=""><figcaption>Nepse CEO Chandra Singh Saud.</figcaption></figure>Companies that are going public must disclose all operations to regulators to ensure market transparency, but in no way are regulator officials, investment executives, brokers, company employees and others with an inside track allowed to enrich themselves using the company’s open books. Similarly, the investigation showed that SEBON chair Bhisma Raj Dhungana had also bought 11,992 shares in the name of his US-based daughter, Rebika Dhungana, in Sarbottam Cement before its book building process had started. SEBON’s Code of Ethics bars the board’s members and chair and their families from engaging in any transaction from which they can financially benefit.“Yes, my daughter sent me money from the United States to buy the shares, and yes, they are her shares,” Dhungana admitted. “Just because I am the chair of SEBON does not mean the law bars my married daughter from buying shares from any company she wants.”Dhungana was formerly with Nepal Rastra Bank, and is believed to have been nominated for the four-year term in SEBON at the recommendation of President Bidya Devi Bhandari. <figure><img width="1604" height="860" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141124/636cfbc39c7e80680e0a0b4ejpeg.jpg" alt=""><figcaption>SEBON Chair Bhishma Raj Dhungana.</figcaption></figure><a href="https://www.himalkhabar.com/news/125258">An expert in share market regulations told Himal Khabar</a>: “This is a straightforward case of insider trading. There is no question about it.”Sarbottam Cement had signed an agreement with Global IME Capital to handle the IPO in March in the presence of SEBON officials, but the process has been delayed till later this month. Nepal’s manufacturing companies, especially in the construction and hydropower sector are currently riding a wave of market confidence. Another compnay, Shivam Cement, recently went public clocking a similarly strong stock market performance. The revelation of insider trading has been greeted by outrage on Nepal’s social media, and is likely to erode people’s growing trust in the stock exchange, with many commentators and financial analysts equating the secondary market with skulduggery, insider trading and outright theft.‘Are board members allowing suspicious companies to release shares under the temptation of illicit rewards?’ asked one social media post. Another went: ‘Is the share distribution process transparent?’ Yet another said: ‘Have finance bosses, chiefs and sales executives rigged the process to earn favourable shares for themselves?’ The share market had been anticipating a surge, riding a wave of investment interest of the Nepali public in the manufacturing and construction sectors. But the reports of insider trading confirm the public’s suspicions of hanky-panky, and are expected to dampen the stock market.  Moreover, moving forward, companies wishing to list their IPOs via book building will be cautious of possible behind-the-scenes dealings.The irregularity in Sarbottam Cement share offering is not the first of its kind, with the Securities Act 2007 violated previously.  In 2014, investors at Citizens Investment and Employees Provident Funds were caught exchanging investment with the Upper Tama Kosi Hydropower with shares for themselves in return. The regulations were subsequently overhauled and loopholes plugged.The Upper Tama Kosi and Sarbottam Cement cases are similar in the sense that they were both examples of graft, wherein two parties are believed to have exchanged confidential information for personal profit. Given the impunity that is rife in Nepal’s political and business spheres, the Sarbottam issue will further damage the reputation, trust and transparency of the share market, hurting an already moribund economy.Stock exchange legal expert Amrit Kharel is clear about the rules: “Three generations of the family members of a person with inside information about an initial public offering are barred from benefiting from any transaction, It is not just unethical, it is considered insider trading. And if any member of staff of SEBON is found to be violating this, they are liable to prosecution.”Links to Himal Khabar series on this subject:<a href="https://www.himalkhabar.com/news/125318">https://www.himalkhabar.com/news/125318</a><a href="https://www.himalkhabar.com/news/125244">https://www.himalkhabar.com/news/125244</a><a href="https://www.himalkhabar.com/news/125258">https://www.himalkhabar.com/news/125258</a>Translated by Kaustubh Dhital

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Insider trading taints Nepal capital market

Nepal won the first two matches, clinching the T20 series in the UAE, making history: this is the country’s first ever win, and series win, against a Test-playing country.&nbsp; On Tuesday night, Nepal lost the last game by 10 wickets. The West Indies easily met Nepal’s 122 runs in 19.5 overs. Despite that, Nepal had beaten the two-time T20 World Champions which is currently number 6 in T20 rankings. It is important to note that the West Indies are fielding a significantly weaker and younger team than they could. Caribbean heavy hitters Nicholas Pooran, Andre Russell and Shimron Hetmyer are currently resting or playing in domestic leagues. But that does not take away from the fact that, after two narrow misses against South Africa and Bangladesh at the 2024 T20 World Cup, Nepal has now beaten a Test-Playing nation, and done so convincingly.&nbsp; Nepal won the first match of the series on 27 September by 19 runs. Batting first after winning the toss, Nepal put up 148 for 8 after losing openers Kushal Bhurtel and Aasif Sheikh early.&nbsp; Rohit Paudel’s 38 and Kushal Malla’s 30 steadied the innings, and 148 was a reasonable target to defend on the tricky Sharjah pitch. The young Windies dropped a series of catches.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251001031052_5f24273f6da2f52f6414b7ecc485938a4c726431bfa7c2ba435bded3debe9f5a.jpg" data-media-id="editor_0" data-image-id="20251001031052_5f24273f6da2f52f6414b7ecc485938a4c726431bfa7c2ba435bded3debe9f5a" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Nepal defeats West Indies NT 1"> </figure>  Nepal’s fielding, in contrast, was excellent as it held the West Indies to 129 for 8. Dipendra Singh Airee and Kushal Bhurtel both had run outs, and the team held on to tricky catches throughout.&nbsp; The last ball of the match, with it already won, saw Bhurtel catch Fabian Allen off of Airee’s bowling, throw the ball in the air before stepping outside the boundary, before jumping back in to complete the catch legally.&nbsp; Head coach Stuart Law, former Australian Cricketer, was pleased with the performance. “We deserved it, we played a really good game of cricket. I thought our fielding in the first 15-17 overs was outstanding,” he said, predicting, “the West Indies will be hurt, they’re a proud nation. They’ll come out red-hot on Monday, so we got to be better than tonight.”&nbsp; Bhurtel was ecstatic at having beaten the two-time T20 World Champions. He pointed to the team’s versatility as a big strength. “We have a lot of players who can both bat and bowl. Gulsan (Jha) and Kushal Malla did not bowl at all, and Lalit (Rajbhansi) did not bowl out all of his overs.” And the team still used seven bowlers.&nbsp; If the first match was a surprise, then the second match was a shock. Nepal put up 173 for 6, with Aasif Sheikh hitting 68 not out and Sundeep Jora 63, the two putting up a hundred run fourth wicket partnership.&nbsp; They then bowled out the West Indies for a humiliating 83, with Mohammad Aadil Alam taking 4 for 24 and Kushal Bhurtel 3 for 16.&nbsp; There was more excellence in the field, with the Nepali team taking seven catches, many of them very tricky ones right on the edge of the ropes. This second win sealed the series victory, also a first for Nepali cricket. The margin of victory and the team’s overall dominance were both very obvious.&nbsp; Nepalis in the UAE showed up at the Sharjah Stadium in full support for the Rhinos, wearing jerseys, flags, and dhaka topis, raucously cheering on the team’s performance.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251001031052_217ceb7078e9c253f8db6fec57911eb8e56822e3fc20d520d39e06f475fd6d65.jpg" data-media-id="editor_1" data-image-id="20251001031052_217ceb7078e9c253f8db6fec57911eb8e56822e3fc20d520d39e06f475fd6d65" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Nepal defeats West Indies NT 1"> </figure>  Fresh on their minds must have been recent protests back home. The Cricket Association of Nepal dedicated the series to those who lost their lives. Captain Rohit Paudel also dedicated his man of the match award from the first T20 to the 74 people killed last month in Nepal.&nbsp; “Since last one month has not been that great for us, so slowly we are getting better. It is great to give a little happiness to the people of Nepal,” said Paudel.&nbsp; Leg-spinner Sandeep Lamichhane was notably absent from both matches, having excused himself from the squad for personal reasons.&nbsp; “It is what it is,” said coach Law. “we are a very competitive team and someone has to stand up in his place.”&nbsp; The wins also open the possibilities for further series, with countries such as Bangladesh, Pakistan or Zimbabwe.&nbsp; CHASING TESTS  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251001031048_70fed823c34d91dfefc078cb5786c2ea04ad70387fbf09424a5304b926cc3e3c.jpg" data-media-id="editor_2" data-image-id="20251001031048_70fed823c34d91dfefc078cb5786c2ea04ad70387fbf09424a5304b926cc3e3c" data-rendition-name="original" width="1600" height="995" loading="lazy" alt="Nepal defeats West Indies"> </figure>  In international cricket, a ‘Test-playing nation’ is a country that is authorised to play Test Matches by the central governing body, the International Cricket Council (ICC). Test Matches are the longest format of the sport, lasting up to five days, and are the most prestigious.&nbsp; Currently, this exclusive group is made up of Australia, Bangladesh, England, India, Ireland, New Zealand, Pakistan, South Africa, Sri Lanka, West Indies, Zimbabwe, and Afghanistan.&nbsp; Nepal has a ways to go. To become a Test-playing nation, it must first become a full member of the ICC. To do this, they must consistently qualify for ODI and T20 world cups over eight years, and have at least two ICC-accredited venues for hosting matches — currently only the Tribhuvan University Cricket Ground qualifies.&nbsp; Nepal must also have significant youth development infrastructure, a good domestic setup, and a recognised governing body that is financially stable and not corrupt.&nbsp; With the current development of stadiums across Nepal and innovations such as the Nepal Premier League, and performances such as these, Nepal seems firmly on the way.&nbsp;

2-1 for Nepal against The Windies

Nepal is still reeling from the short but violent GenZ moment, and the reverberations are being felt around the world.&nbsp;
As news from the killings and rampage from Nepal on 8-9 September spread through the wire services and social media, in the Philippines, East Timor and even faraway Peru, banners on the streets last week referred to ‘learning lessons from Nepal’. In Ladakh last week, <a href="https://www.aljazeera.com/news/2025/9/25/bloodiest-day-how-gen-z-protest-wave-hit-indias-ladakh-killing-four">protesters set fire to the ruling BJP party office</a> and four people were killed in police firing.&nbsp;
Nepal’s GenZ was praised by <a href="https://www.nytimes.com/2025/09/19/opinion/asia-protest-youth-nepal-bangladesh.html">international commentators</a> for rising up against chronic corruption and impunity, and for achieving the fastest regime change in history. But the youth were also blamed for the arson and vandalism even though the groups said they had no part in it — most &nbsp;foreign media also did not highlight enough the infiltration by radical groups.
“We were not expecting the protests to turn so violent and deadly. On the second day, things escalated so quickly it became difficult to keep track. We were rushing on the groud and making calls to confirm what was happening,” recalls Paavan Mathema of Agence France-Presse (AFP) in Nepal.
The GenZ protest this month was a lesson on the mechanics of social media. Hashtags like #youthagainstcorruption and #nepobaby from Indonesia inspired Nepal’s youth to take to the streets, but events here in turn triggered protests elsewhere. The international news agencies and mainstream global tv channels were not as important in this information cross-pollination.
The movement was organised online and spread quickly in no time, but it was disinformation and fake news that spread faster than facts. The over-simplification by international media was because it had to explain 30 years of political evolution in a country that they mostly ignored in the past, this sometimes tended to be misleading.&nbsp;
While the Oli government’s social media ban of 26 platforms starting 5 September poured oil on the fire that had already been lit by a disparate group of desperate youth, their outrage over decades of corruption and impunity was reaching a breaking point. There was extreme disenchantment with serial politicians recycling themselves in power.&nbsp;
“The ban on social media definitely triggered the protest, but we put a high priority on accuracy and speed during reporting in such times,” explains the Nepal correspondent for Associated Press (AP) news agency in Nepal Binaj Gurubacharya. “Our own safety also becomes a prime concern in times like these, but should not be at an expense of accuracy.”
CRISIS REPORTING
But headlines everywhere including in The New York Times, The Guardian and others that used wire service content initially highlighted the social media ban as the main reason for the protest. They were soon called out by protesters, while <a href="https://institute.aljazeera.net/en/ajr/article/3358" target="_blank">Al Jazeera</a> and its <a href="https://institute.aljazeera.net/en" target="_blank">Media Institute </a>were applauded for more nuanced coverage.
Another positive example of international media supplementing the stories by local journalists was <a href="https://www.france24.com/en/" target="_blank">France 24’</a>s detailed <a href="https://www.france24.com/en/asia-pacific/20250915-nepal-police-protests-violence-kathmandu" target="_blank">forensic analysis</a> of the security forces firing live ammunition at protesters at Parliament on 8 September.&nbsp;
What really went far and wide around the world were dramatic YouTube videos about the violence, and memes on social media. <a href="https://nepalitimes.com/here-now/the-accidental-journalist" target="_blank">A British tourist</a> who filmed street protests did the work of an on-the-ground journalist and got millions of views globally for some of <a href="https://www.youtube.com/watch?v=Slq6zWu9o9w" target="_blank">his YouTube videos</a>.&nbsp;
But some of the misinformation or fake news on social media was also picked up by the mainstream press, like the <a href="https://timesofindia.indiatimes.com/world/south-asia/nepal-violence-ex-pm-khanals-wife-dies-after-house-torched-president-urges-calm-dialogue/articleshow/123791004.cms">wrongly reported death of former Prime Minister Jhalanath Khanal’s wife</a> in an arson attack on their home. A video of the Finance Minister Bishnu Poudel being <a href="https://www.ndtv.com/world-news/video-nepal-finance-minister-chased-through-street-kicked-attacked-9243749">chased and beaten</a> by protesters also turned out to be someone else.&nbsp;
Some international outlets, mainly in India, also fell prey to a fake video that K P Oli had fled to Dubai. Even this newspaper’s online edition had to correct it after wrongly reporting it without verification.&nbsp;
Indian tv channels which did &nbsp;extensive coverage of events in Nepal, with many Nepalis relying on them and believing their content — especially during the protests when Nepal’s main channels went off air as they were being attacked.
All this got out of hand, and protesters in the week after the violence started ridiculing and harassing Indian tv correspondents as they tried to interview talking heads outside the charred Parliament building, or on the streets.
<a href="https://www.newslaundry.com/2025/09/09/foreign-hand-gen-z-data-addiction-5-ways-indian-media-missed-the-nepal-story">Indian media</a> were also the first to accuse US involvement in sparking a ‘colour revolution’ in Nepal. They later claimed that former Nepal Electricity Authority (NEA) chief and now Energy Minister Kulman Ghising and even Kathmandu Mayor Balen Shah have been appointed interim prime minister in Nepal. These were rumours in Nepal, but were reported as news.&nbsp;
“Fact checking is crucial while covering such movements, and since we are telling an important story about Nepal to the world, double checking becomes important as it sets the international narrative,” says Mathema.
“We were constantly double checking numbers and information with concerned authorities and parties to make sure we were accurate, especially as misinformation was rampant,” she adds.
Apart from Indian media, international news agencies got reinforcements of reporters, photojournalists and editors from the region, and other foreign correspondents also flew in when Kathmandu airport was opened after 48 hours.
Adds Mathema: “Sometimes foreign reporters can give a fresh perspective or an angle which we could not see or cover. So their inputs are always helpful.”
In the aftermath of the violence, there were plenty of jokes and memes, clips of protesters dancing, in weird poses and performing martial arts, showcasing the light hearted side of the protests while also <a href="https://nepalitimes.com/here-now/nepal-s-meme-revolution">reaffirming the resilience</a> of people able to bounce back from something so traumatic.
The GenZ clean-up campaigns, neighbourhoods helping restore burnt out police stations and local people’s emotional reaction to the burnt out hulks of government buildings at the city centre also <a href="https://www.scmp.com/week-asia/people/article/3325635/nepals-gen-z-protesters-lead-clean-campaign-after-violent-clashes">made news</a>.
“After the protests, people were quick to gather and clean up public spaces and paint police stations. This is a scene which may not be so common in other countries with similar violence,” adds Gurubacharya. “So it became an important story to also tell the world.”&nbsp;
In less than two days, the world saw a dramatic toppling of a democratic government. With the interim government led by former chief justice Sushila Karki, there is much hope. She has expanded her ministerial cabinet, and the election has been announced for 5 March 2026 but between then and now, a lot remains uncertain.&nbsp;
And Nepal will continue to be watched by national and international media alike until then and after. AP’s Gurubacharya sums it up: “For now, we are taking it one day at a time.”

International spotlight on Nepal

From the echo chambers of social media to neighborhood tea shops, the hot topic two weeks after the GenZ revolt toppled Nepal’s government is whether the country should now have a directly elected prime minister. Although this has been proposed before as a way to end the instability in heads of government chosen by the biggest party or coalition in Parliament, it has found supporters and critics in the aftermath of the protests. As democratic as it sounds, a directly elected executive is not that simple.&nbsp; Nepal’s 2015 Constitution does not allow it, but for a young generation impatient for change, this demand raises critical social, political and constitutional questions. Nepal has seen a multiplicity of systems in the past 45 years: from a partyless absolute monarchy to a constitutional one, a parliamentary democracy and then a federal republic. But they have repeatedly failed to bring stability, good governance or an end to corruption in Nepal. But even though lately they have ensured civil liberties, the public was losing hope for the future, especially the young who could air and amplify their outrage on social media. Unbridled corruption and ideologically mismatched fragile coalitions acting with impunity, led many to conclude that a directly elected prime minister would ensure stability and accountability. ‘We have repeatedly trusted the same political parties, but they have repeatedly broken that trust, so it is no longer possible to trust that system anymore,’ says Miraj Dhungana, popular for the TikTok videos asking young people to go out into the streets to rally against corruption, and seen by many as the ‘original’ representative of Gen Z.&nbsp; In interviews he has stated that it has become necessary for Nepal to have a directly elected executive head through constitutional amendment. Dhungana himself did not participate in the protests after his meeting with pro-monarchist businessman Durga Prasai on 7 September sparked controversy that he as a lackey. Binod Deuba Thakuri of the Nepal Student Union who also participated in the GenZ protests thinks Nepal is institutionally not ready for directly elected prime minister: “Our democracy is not mature yet, our institutions are not strong, and we are vulnerable to social media induced populism.”&nbsp; CONSTITUTION AMENDMENT Amending the Constitution would also open a pandora’s box, with other demands, and should be left to the next legislative body, he adds. In her address to the nation on Friday, Prime Minister Sushila Karki who is a former chief justice also clarified that her interim government does not have the mandate to amend the Constitution to make way for a directly elected head of government, and it should be up to the new legislature and government after the 5 March election.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250919130956_799b2d43dccca73b3bff96e435efc0752203117b2cb219d0073994c0e6f2ee25.jpg" data-media-id="editor_0" data-image-id="20250919130956_799b2d43dccca73b3bff96e435efc0752203117b2cb219d0073994c0e6f2ee25" data-rendition-name="original" width="4160" height="2774" loading="lazy" alt="Constitution Day NT"> <figcaption>Constitution Day address by Prime Minister Sushila Karki on 19th September earlier this month.</figcaption> </figure>  The demand for a directly elected executive head was first raised by Maoist leader Pushpa Kamal Dahal after the 2006 ceasefire. He proposed himself as Nepal’s first executive president ahead of the 2008 Constituent Assembly elections. While the UML did not strongly oppose the idea, the Nepali Congress (NC) stuck to a parliamentary framework. The 2015 Constitution ultimately clinched it for the current parliamentary system. The Constitution stipulates that the process of selecting a prime minister is based on parliamentary strength: the President appoints the leader of the party with a majority in the House of Representatives, or, in the absence of such a majority, a member who can demonstrate majority support. If these efforts fail, provisions exist for coalition or minority governments, and ultimately for the dissolution of the House and fresh elections. The Constitution currently makes no provision for a directly elected prime minister, which means that any attempt to introduce a directly elected executive would first require the careful design of a democratic mechanism to amend the Constitution and set out the procedures for such an election.&nbsp; “There is no legal legitimacy to have the directly elected executive head of the country in the March election, except if political legitimacy surpasses legality but that would mean a new constitution,” explains senior advocate Surendra Kumar Mahato. “Many other institutional arrangements like the appointment of the judiciary, the role of the president, and other check and balance mechanisms would need to be restructured.” Mahato says: “Nepal’s Constitution itself is not at fault — it is the political actors, who have failed to uphold good governance within its framework. Changing systems does not ensure better governance.”&nbsp; Changing the Constitution also needs a broad political consensus, the institutional capacity of the state must be carefully considered to ensure such a new system can function effectively in practice and not simply in theory. Empowering an executive head through direct elections should not come at the expense of accountability or parliamentary oversight, and there should be checks and balances in place. LESSONS FROM ABROAD Sri Lanka’s 2022 Agralaya was fuelled by the anger that the directly executive head turned out to be an authoritarian who backslides on democracy. Under Sri Lanka’s 1978 Constitution, the country adopted a directly elected executive presidency with sweeping powers over the cabinet, appointments, dismissal of parliament, and control over key institutions.&nbsp; Over the years, President Mahinda Rajapaksa removed term limits via the 18th Amendment in 2010, centralised appointment powers, including judges and heads of independent commissions, and used constitutional changes such as the 20th Amendment (2020) to reverse safeguards that limited presidential authority, thereby subordinating the legislature, weakening oversight, and enabling authoritarian control.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250914060932_a96e1046d0b148982b33f2dcbe56f349dc0c20a087e358360eb2dddcfe0b5072.jpg" data-media-id="editor_1" data-image-id="20250914060932_a96e1046d0b148982b33f2dcbe56f349dc0c20a087e358360eb2dddcfe0b5072" data-rendition-name="original" width="4640" height="2610" loading="lazy" alt="GenZ and Aragalaya"> <figcaption>Anti-government protest in Sri Lanka on 13 April 2022 in front of the Presidential Secretariat. Photo: WIKIPEDIA</figcaption> </figure>  Nepal’s multiparty framework upholds an institutional balance where both the governing party and the opposition have defined roles. This parliamentary setup prevents power from being overly concentrated in one individual and ensures accountability through parliament and competing parties. Beyond the neighbourhood, the United States has a directly elected executive system. Donald Trump exemplifies how direct electoral mandate can fracture institutional check mechanisms. He has leveraged his power to attack judges, frame political opponents, turn legal defeats into rallying points for his supporters, often using pliant media platforms to reinforce the idea that institutional checks impeded the popular will. In Nepal, there is a risk that a directly elected prime minister could bring up a populist media savvy messiah who could use public grievances to get to power and consolidate it. Social media can be mobilised and easily saturated with posts to fuel a political narrative of choice.&nbsp; In the past, former prime minister K P Oli’s ‘digital army’ has been lobbied on his behalf on social media. Even without an ‘IT sena’, it is not unusual for governments to collaborate with social media platforms as seen in the US and India.&nbsp; In Nepal, a directly elected prime minister would raise the stakes, turning the battle for votes into a battle for attention online, where a leader who wins the algorithm also wins the elections, just as Kathmandu Mayor Balen Shah demonstrated in 2022 with support from groups like MRR and RONB. The Balen Phenomenon started in social media trickled to the ballot box.&nbsp; The digital space mas ensure that it is not trendy to dislike Balen. Comments that are critical of the Kathmandu Metropolitan City’s treatment of street vendors or of the mayor himself are met with backlash from supporters. Or, if the comments did not get any likes, the algorithms filtered them out as ‘not relevant’.&nbsp; The conversation of Shah often centred on his emotive responses and sentiments, generating strong engagement online. Meanwhile, policy debates received comparatively less attention.&nbsp; “Choosing a leader directly through an election means that we are vulnerable to populism and undermining of the democratic process, accountable institutions,” says Thaukri. Political activist Pradip Gyawali admits that the GenZ revolt was an example of how social media is a powerful tool to organise and disseminate information. But there are risks posed by disinformation and fake news online.&nbsp; “More media and political literacy among the people before the election in March is crucial to control the damage social media could do to influence voter behaviour,” he says.&nbsp; Beyond social media, online news increasingly relies on sensational, click-driven headlines to attract readers in a competitive digital market. A recent survey showed that 82.6% of GenZ (16- 24) rely on Facebook for news and 51.4% on YouTube.&nbsp; Nepali people with higher education seemed to engage with news more (99.1%) than illiterate individuals at 52.1%. Byte-sized headline-only journalism is leaving readers to their own devices, and vulnerable to media infiltration by IT cells.&nbsp; With social media actively shaping the course of elections, and news consumption, debates about changing the Constitution or the system of governance yet again may not ensure the demands for corruption free governance is met. Instead, strengthening media and political literacy among voters is key to prepare for the elections in March. Ayusha Chalise is a communication and development scholar specialising in how politics is experienced in the digital space.

Nepal's democracy keeps doubting itself

The word for ‘development’ in Nepali is bikas. The world for destruction is binas. &nbsp; The two words not only rhyme, but replacing just one consonant gives it an opposite meaning. It also demonstrates how easily what we think is <a href="https://nepalitimes.com/editorial/development-destruction-yt3t1yhu">‘Development’ can be destructive</a>.&nbsp; University libraries in Nepal and around the world are stacked with hundreds of books dissecting ‘development’. They can be divided broadly into at least two types: some authors define development as a moral imperative to improve living standards of people in the underserved parts of the world, mostly in the Global South.&nbsp; Others critique development either as being an ‘industry’, or as a continuation of the western colonial project that imposes dependency and corruption, perpetuates the donor-recipient hierarchy, and ends up disempowering intended beneficiaries. Somewhere in between are books by experts who have tried to find a middle path with concepts like ‘sustainable human development’, ‘people’s participation’ or ‘public-private partnership’. But even the staunchest proponents of traditional development models will admit that all is not well, somewhere along the line we lost our way. Peter Sutoris and Uma Pradhan have dared to take the bull by the horns to find a new path to ‘reimagine’ development, and explore new templates to confront a world wracked by interconnected crises of conflict, inequality, environmental decay and climate breakdown. Their book Reimagining Development: Bold Directions Towards a Thriving World lays out a roadmap for countries like Nepal as they try to fix what went wrong. Billions of dollars were poured into Nepal’s ‘development’ over the past seven decades, but the country is littered with the carcasses of failures like the rusted abandoned tractors from the Rapti Valley Development Project 65 years ago. To be sure, there have been catalytic success stories along the way. It is not a coincidence that whatever has worked well in Nepal since 1990 has the word ‘community’ in it — things fall into place when local groups are given ownership to decide what they need, and allowed to decide what they need to do.&nbsp; Some examples in the book include <a href="https://nepalitimes.com/banner/reviving-nepals-community-forestry-success-story">Nepal’s community forestry project</a>, which Sutoris and Pradhan cite as an example of the kind of possibilities needed to reimagine development for a ‘thriving world’. Local communities were handed control to manage their natural resources, revive traditional conservation practices, and assert command over their own destiny. Nepal’s community forestry program together with the Local Self Governance Act that decentralised power to elected local bodies in the 1990s was the best example of how development can be a political act to ensure an equitable future, while conserving nature. Sutoris and Pradhan write: ‘Substantial evidence from Nepal indicates that community forestry enhances forest protection and regeneration … Village Development Committees that had adopted community forestry recorded a 77% increase in forested area, compared to a 13% increase in the villages without community forest.’&nbsp; Peter Sutoris was born in the former Czechoslovakia that saw the 1968 Prague Spring uprising and the Velvet Revolution of 1989. Uma Pradhan is from Nepal, which has witnessed successive People’s Movements in 1980, 1990, 2006 and earlier this month in 2025. &nbsp; ‘It was perhaps because of these experiences of witnessing the remaking of the world in the wake of the end of the Cold War that we come to this book with a strong belief that even the most rigid collective trajectories can and do change,’ the authors write in their introduction. Their book has three parts. The first one dissects the Development Industry and the model of perpetual ‘growth’. (Interestingly, the word ‘growth’ is used in medicine to signify malignancy.) The authors propose re-centering the stories of beneficiaries and their lived experiences which have been pushed to the margins in ‘project’ design of mainstream Development with a capital ‘D’. &nbsp; The book defines development with a lowercase ‘d’ as a more democratic bottom-up approach. Capital ‘D’ Development on the other hand involves ‘developers’ wanting to ‘develop’ societies, replicating the wasteful, unsustainable growth path of the industrialised countries. &nbsp; The book’s second section examines the tension between sweeping international concepts of development, and how it is not quite relevant to the reality of rural areas of countries like Nepal. The prevailing notion that development ‘aid’ flows mostly from cash rich countries to cash poor ones ignores the fact that it mostly takes from the poor in rich countries to give to the rich in poor countries. After all, the Global South also includes the underserved parts of the Global North.&nbsp; RETHINKING PROGRESS The Development Industry does ‘develop’ certain segments of the economy, just not so much the sections it is supposed to uplift. The <a href="https://nepalitimes.com/here-now/usnoaid">cancellation of USAID</a> this year vacated hundreds of rented offices and houses in Kathmandu, consultants and contractors became jobless, and even Nepal’s domestic airlines lost business.&nbsp; The third part of this book imagines what ‘A Thriving World’ can look like if we listened more to indigenous communities and their knowledge of the stewardship of nature, adopted best practices about inclusive and decentralised decision-making, and explores examples of ‘degrowth’ and ‘postgrowth’ to address unsustainable consumerist, extractivist economics, and the climate crisis. Sutoris and Pradhan admit that these concepts are not new. Practitioners have questioned the top-down model for decades, but their book Reimagining Development takes a fresh, non-conventional approach to bridging the best of the ‘old’ development discourse with a ‘new’ imagining that transcends entrenched positions. The authors cite Buddhist mindfulness techniques, the concept of ‘radical humility’ and the idea of deep time to zoom out for a fresh perspective on a novel development paradigm to ‘think about humanity’s position in the world’. ‘Ultimately, this book is likely to disappoint both the proponents and critics of development,’ the authors admit. ‘The proponents might view the arguments we put forward as too esoteric and not attuned to what can realistically be achieved. The critics might be dismayed by our &nbsp;unwillingness to dispose of the concept of development altogether and by our attempts to give credit to the Development establishment where credit is due. Our aim, however, is not to please either camp.’ The authors do not want to throw the baby out with the bathwater. However, the obsolete way of forcing soft states to adopt the path of linear modernisation and infinite growth so they can ‘graduate’ to a higher per capita income bracket must be rethought. Alternative models are available to confront the momentous crises facing people and the planet.&nbsp; Nepal’s <a href="https://nepalitimes.com/here-now/nepal-s-historic-youth-dissensus">GenZ protesters this month rose up</a> against corruption and bad governance. But underlying it was a failure of the development path that the country has chosen, which contributed to wanton destruction of ecosystems, the unequal allocation of &nbsp;benefits, and corruption that ensured both over- and under-development.&nbsp; Nepal’s young idealists may not have been able to articulate it in the language of academic discourse, but on social media platforms they have discussed a post-development era to reexamine and reimagine development, accountability, embedded ethnocentric hegemony, and an in-built structural inequality in the system.&nbsp; These lines from Sutoris and Pradhan’s book could almost be word-for-word from the GenZ manifesto: ‘Development encompasses not only financial prosperity but social justice, environmental sustainability, and the more plural development pathways that respect the world’s diverse cultural, historical, political, and social contexts.’&nbsp; Indeed, instant global connectivity through social media platforms has meant that socio-political movements elsewhere in the world impacted on young Nepalis, just as the events in Nepal this month are now influencing youth globally.&nbsp; These lines from Reimagining Development were written before the September Uprising in Nepal, but were a warning of things to come: ‘The current moment feels different. Perhaps due to the global nature of many of the contemporary movements facilitated by social networks, perhaps due to the movements’ sheer scale, or perhaps as a result of the multitude of challenges faced by the world, the feeling in the air seems to be that accumulated critiques of Development are more pressing than ever. If development is to remain a historical moment, it must reinvent itself and finally listen to the voices from below.’ &nbsp; Kunda Dixit is the author of Dateline Earth: Journalism As If the Planet Mattered, and publisher of Nepali Times.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025092704094_b795907f8fa9a5ec67508e683e7a65737c6c237ca5482425bcbe5ee6254bb3f0.jpg" data-media-id="editor_4" data-image-id="2025092704094_b795907f8fa9a5ec67508e683e7a65737c6c237ca5482425bcbe5ee6254bb3f0" data-rendition-name="original" width="1136" height="702" loading="lazy" alt="Development book details"> </figure>

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