A lot of the discussion on the new budget has hinged on taxes. But the fact that it allocated more money for debt servicing than for capital expenditure is a much more stark indication of the state of the economy.&nbsp;
The government earmarked Rs331 billion to pay back domestic and external loans and interests, higher than Rs320 billion set aside for capital expenditure. In essence, this means there will be less money for health, education, or infrastructure.&nbsp;
In fact, the government plans to borrow Rs240 billion in internal loans, but will be spending over Rs275.79 billion paying off old debt.
With falling tax revenue unable to cover expenses, more than a quarter of the budget is now borrowed from outside and within the country. Public debt as a proportion of GDP before the earthquake was 22%, now it has exceeded 42%.&nbsp;
Read also: <a href="https://www.nepalitimes.com/here-now/nepal-s-tax-system-widens-rich-poor-gap">Nepal’s tax system widens rich-poor gap</a>, Ramesh Kumar
“We are falling into a domestic debt trap, we have reached a point where we are having to borrow more money to pay our debt,” warned former finance minister Yubaraj Khatiwada. “Alternatively, the government’s capacity to spend on development is now weaker.”
According to the Public Debt Management Office, Nepal’s total public debt has exceeded Rs2.15 trillion. Of this, domestic debt is Rs1.08 trillion and the other half is foreign loans. In 2015, domestic debt as a proportion of GDP was 8.1% and foreign debt was 14.2%. By the end of December 2022, this ratio increased to 19.9% and 22.7% respectively.&nbsp;
Government housing grants post 2015 earthquakes, implementation of financial mechanisms within the federal system including building of new infrastructure, and the Covid-19 pandemic have been blamed for the increase in public debt. Wanton expenditure by successive ruling parties has also played a hand.&nbsp;
“The expenditure will increase now that the internal bonds taken by the government have matured and the repayment period has started,” says Finance Ministry spokesperson Dhaniram Sharma. During the pandemic, the government had requested donors to postpone loan repayment period by a few years. We have now passed that grace period.&nbsp;
Read also: <a href="https://www.nepalitimes.com/editorial/institutionalised-inequality">Institutionalised inequality</a>, Editorial
On the other hand, the government has started to raise more domestic debt through development bonds since 2018/19. This will lead to an increase in the amount earmarked for interest and capital repayment, further diverting resources from development. &nbsp;
In the financial year 2022/23, the government allotted Rs.609 billion for development and Rs.188 billion for the payment of interest on loans. This fiscal year, the development budget has shrunk by 23%, while debt repayment increased by a whopping 76%.&nbsp;
“Because all of this is costing the government more money, it is raising the debt of the market. Now what this does is create a situation where only a few in the private sector can manage to get loans,” says Khatiwada.
Foreign loans from donor countries, agencies and multilateral organisations are concessional in nature, meaning they have an affordable interest rate of less than 1%. Many of these loans have a repayment period of up to 40 years. For example, the government has taken a loan of about Rs16 billion from the Japanese government to build the Nagdhunga tunnel. The interest rate of such a loan taken for 40 years is only 0.01%
Read also: <a href="https://www.nepalitimes.com/?p=21822&amp;preview=true" target="_blank">Some are more equal than others</a>, Anil Chitrakar
However, internal borrowing is expensive. As soon as the interest rate of loans of banks and financial institutions increases, the government also has to borrow more expensively. According to the Public Debt Management Office, the average interest rate on bonds is 10.30%, up from 5.75% in 2017, primarily due to the lack of investable funds in the financial system.
“Internal debt is an invisible tax imposed on the common man. As the internal debt increases, the government starts looking for ways to generate income to pay it. As a result, taxes are added to goods and services used by citizens,” says former secretary at the Finance Ministry Rameshore Khanal.
But in addition to paying off instalments of the old loans, the Finance Ministry is also under pressure to increase salaries, social security allowances and other expenditure obligations. As such, the government has started imposing higher tax rates to increase its income. Nepal is already one of the countries with the highest tax rates in South Asia. Revenue makes up 22% of Nepal’s GDP.&nbsp;
More than half of the country’s annual budget is being spent on salaries, administrative expenses, social security, subsidies, etc., so the government relies on debt to raise resources for development. Large budget and distribution-oriented programs in turn have further increased the internal debt. Experts say loans should be taken only for priority areas and for productive sectors that can repay the amount.&nbsp;
Says economist Pushkar Bajracharya: “Otherwise, taking out loans and spending them indiscriminately will only further burden the future generation of our people.” &nbsp;
Read also: <a href="https://www.nepalitimes.com/here-now/state-sponsored-economic-crisis-ikcxxmnp">State-sponsored economic crisis</a>, Ramesh Kumar

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Till debt do us part

Robert Redford was an A-list megastar who had dominated Hollywood throughout the 1970s, generally considered the high water mark of American cinema.&nbsp; In those days Nepal was a fashionably remote destination, so it was not unusual for us to be looking after celebrity visitors. But Robert Redford was huge by any standards.&nbsp; “Call me Bob,” was the first thing he said to me, with that wonderful embracing smile that had lit up screens and quickened heartbeats around the world throughout the previous decade.&nbsp; We met over a cosy Mountain Travel dinner in Al Read’s brick and stucco house in Dhobighat. The floors were traditional terracotta tiles, the low beams darkly varnished and a cheerful fire warmed the October chill.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921110940_32dd66ba4b578a843bbbf6a74bca7d47f9ac7083c3bf50f8213ac3e5322974fd.jpg" data-media-id="editor_0" data-image-id="20250921110940_32dd66ba4b578a843bbbf6a74bca7d47f9ac7083c3bf50f8213ac3e5322974fd" data-rendition-name="original" width="1396" height="920" loading="lazy" alt="Robert Redford in Nepal"> <figcaption>Robert Redford in 1982 at Meghauli airfield in Chitwan with young Kirsten Annapurna Read, the daughter of Al Read, managing director of Mountain Travel Nepal.</figcaption> </figure>  Our heroes often seem diminished in real life and Redford was shorter than expected, though taller than his friends and co-stars Paul Newman and Dustin Hoffman. But most striking was his pock-marked skin which must have challenged makeup artists over the years.&nbsp; I was disappointed he was not wearing his trademark cowboy boots, but Bob’s fame infused the room with his gentle politeness and low-key glamour. Next morning I picked him up from the Malla Hotel for some light sightseeing around the Valley. Under strict instruction from ‘his people’ that any fuss from fans was to be minimised, I was surprised to see him wearing a Sundance tee-shirt – just in case no one recognised him.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921040916_1674398340a9501127e9f8b6b775f41b35703253f772ee05c6ab064819cd0abb.jpg" data-media-id="editor_1" data-image-id="20250921040916_1674398340a9501127e9f8b6b775f41b35703253f772ee05c6ab064819cd0abb" data-rendition-name="original" width="840" height="1280" loading="lazy" alt="Robert Redford in Nepal"> <figcaption>Robert Redford exploring the Kathmandu Valley in 1982. Photo: GALEN ROWELL </figcaption> </figure>  Unmolested, we walked the ancient streets of Bhaktapur, and Bob was duly entranced by the visual impact of Malla Newar’s enduring culture. Robert Redford’s main purpose in Nepal was to trek in the Khumbu with his friend Galen Rowell, an adventure photographer, conservationist and mountaineer who met a premature death in 2002 in a small plane crash in Bishop, California.&nbsp; There may have been some talk of a film about Everest, but nothing came of it. After the trek, Bob and Galen explored the grasslands and forests of Chitwan, staying with us at Tiger Tops Jungle Lodge to view wildlife from the back of a well-trained elephant.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921110948_7c2339d73cedfcc9e659169d1d1bc2239d3d9973f6c4b1a945bfeb74b9b74d19.jpg" data-media-id="editor_2" data-image-id="20250921110948_7c2339d73cedfcc9e659169d1d1bc2239d3d9973f6c4b1a945bfeb74b9b74d19" data-rendition-name="original" width="723" height="958" loading="lazy" alt="Robert Redford in Nepal"> <figcaption>Robert Redford in Chitwan, with Tiger Tops Manager KK Gurung on 9 December 1982. Photo: GALEN ROWELL</figcaption> </figure>  Confiding that he was not much of a traveller, Bob told us Nepal was one of his first trips outside the USA. Bob preferred his homes in Malibu on the Pacific coast and the wide open spaces of Utah, which he named Sundance after his favourite role.&nbsp; SOARING GRANDEUR With his strong affinity for the outdoors, Redford’s horizons must have been significantly expanded by the soaring grandeur of Nepal's sublime mountains, untamed rivers, and tiger and rhino infested lowlands. Galen’s knowledge and enthusiasm for all things Himalayan made him the perfect person to introduce this prominent novice tourist to Nepal’s wild places. Framed photographs of Bob taken by Galen’s skilled camera still grace tourist lodges on the Everest trail, and I confess to having one hanging in our downstairs loo.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921070932_7bff2986293742e6e97c91c879f2549f2a99095f1f4a98c50e3b74c7f91f7b84.jpg" data-media-id="editor_3" data-image-id="20250921070932_7bff2986293742e6e97c91c879f2549f2a99095f1f4a98c50e3b74c7f91f7b84" data-rendition-name="original" width="1076" height="1624" loading="lazy" alt="Rovert Redford in Nepal"> <figcaption>Robert Redford in snowbound Namche Bazar in 1982.</figcaption> </figure>  His movie classics that defined our youth included the iconic Butch Cassidy and the Sundance Kid, The Sting, All The President’s Men and The Way We Were. With many Oscar nominations, his personal best was Ordinary People, his directing debut which swept the award board in 1980, shortly before his Nepal trip. But Robert Redford was more than just an all American action man actor and successful film director. He chose roles that highlighted his political and social outlook. He was admired as an active environmental campaigner, using his fame to fight for clean air and pure water, serving as a trustee of the Natural Resources Defence Council.&nbsp; Redford once said: “The danger of success is that it forces you into a mould. I prefer independence.” Choosing the wilds of Utah over the jungles of Hollywood, in 1981 he started the Sundance Institute to cultivate controversial and independent movie talent.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921040916_081aa6b2c1f9f82f3ea6a550c6887d9a991f2983a0a976456d627d711ae8a2e2.jpg" data-media-id="editor_4" data-image-id="20250921040916_081aa6b2c1f9f82f3ea6a550c6887d9a991f2983a0a976456d627d711ae8a2e2" data-rendition-name="original" width="2448" height="3264" loading="lazy" alt="Robert Redford in Nepal"> <figcaption>Robert Redford being shown around Bhaktapur by Lisa Choegyal on 21 Nov 1982. Photo: GALEN ROWELL</figcaption> </figure>  Festival screenings and workshops gave thousands of film people a chance of artistic freedom, nurturing a galaxy of filmmaker greats. At the end of his long life, Redford’s Sundance is widely recognised as having profoundly influenced American cinema.&nbsp; I like to think that Robert Redford’s rare overseas holiday amidst the stunning natural beauty of Nepal’s high mountains, Sherpa villages, living heritage and endangered animals might have opened his eyes and perhaps even sparked his lifelong concern for social and environmental issues.&nbsp;

The Sundance Kid in Nepal

This text has been updated. Ten days after being nominated caretaker, Prime Minister Sushila Karki has added four more members to her Council of Ministers: Magsaysay winner Mahabir Pun, tv anchor Jagadish Kharel, former Justice Anil Kumar Sinha and Samata Foundation chair Madan Pariyar. Karki was under pressure to complete her compact Cabinet quickly. But it appears that her attempt to find professionals with non-political background, integrity, a record of professionalism while making the selection inclusive has not been easy.&nbsp; Several candidates that Prime Minister Karki had approached is said to have refused to join the interim government. Some have political ambitions and were worried that they would not be able to campaign ahead of early elections called for 5 March 2026.&nbsp; Among those who opted out for various reasons include famed ophthalmologist Sanduk Ruit who said his main responsibility was running his Tilganga Institute of Ophthalmology. Also considered for the role of the Health Minister was cardiologist Bhagwan Koirala who is thought to have declined because of his association with Min Bahadur Gurung, owner of Bhat-Bhateni supermarket chain who had pledged Rs410 million to his Kathmandu Institute of Child Health. Twelve Bhat-Bhateni stores across the country were looted and set on fire during the GenZ protests on 9 September.&nbsp; The Prime Minister had finalised public health expert Sangita Kaushal Mishra for Health Minister, sending her name to the President's office along with the other Cabinet picks on Sunday evening. But the PM withdrew Mishra's name from the list on Monday after it emerged she was under a corruption investigation.&nbsp; Mahabir Pun of the National Innovation Center is the new Minister of Education, Science and Technology. Tv talk show host Jagadish Kharel who runs a popular current affairs program will lead the Ministry of Communication, while Anil Kumar Sinha seems set to be named Minister of Law, Justice and Parliamentary Affairs. Sinha and Mishra are from the Madhes. The new ministers will be sworn in on Monday. The names of the new ministers were finalised in consultation with the representatives of the GenZ protesters. Appointments of new ministers last week, especially of advocate Om Prakash Aryal as Home Minister, was rejected by Sudan Gurung of Hami Nepal, one of the GenZ campaigners, who even demanded resignation of the newly appointed Prime Minister Sushila Karki because his group was not consulted. Last week, advocate Om Prakash Aryal was appointed Home Minister as well as Minister of Law, while former CEO of NEA Kulman Ghising as Energy Minister Urban Development Minister and Minister of Physical Infrastructure, and former finance Secretary Rameshwore Khanal as Finance Minister last week and were sworn in on 15 September. The new ministers have their work cut out as Prime Minister Sushila Karki has set elections for the House of Representatives for 5 March 2026. Electoral reform such that Nepalis outside the country could vote remains a challenge due to time limitation and because of the dissolution of Parliament. The interim government could ask for two more months beyond the initial six to prepare for voting.&nbsp; KNOW THE MINISTERS Names of possible ministers and their portfolios: Mahabir Pun, Minister of Education, Science and Technology  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921150956_5e04418c4d79e283ac66932fbe9cffa8bfdccb8973c7ba867b3a241d0a5c19a4.jpg" data-media-id="editor_0" data-image-id="20250921150956_5e04418c4d79e283ac66932fbe9cffa8bfdccb8973c7ba867b3a241d0a5c19a4" data-rendition-name="original" width="2365" height="3143" loading="lazy" alt="Mahabir Pun"> </figure>  He is the founding chair of the National Innovation Center which was set up in 2012 and most recently restored 484 medical devices including ventilators, dialysis machines, X-rays and autoclaves worth Rs243 million in government hospitals.&nbsp; Pun, 70, is the recipient of the prestigious Ramon Magsaysay Award for community leadership in 2007 for his effort in connecting rural Nepal with wireless internet. Jagadish Kharel, Minister of Communications and Information Technology  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921150956_25b90f5febc65782a3e74a288212175d075b4078802cdd1c0fe16767cf9dd95c.jpg" data-media-id="editor_1" data-image-id="20250921150956_25b90f5febc65782a3e74a288212175d075b4078802cdd1c0fe16767cf9dd95c" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="Jagadish Kharel"> </figure>  He is a tv journalist with nearly 20 years of experience. He is currently the news head of Image Channel as well as the host of the show Hot Seat, and is known for in-depth political and government policy analysis and commentary. Kharel was previously thought to have been invited to join Rabi Lamichhane’s Rastriya Swatantra Party (RSP) after it emerged as the fourth biggest party in Parliament after the last elections. Anil Kumar Sinha, Minister of Industry, Commerce and Supply; Minister of Law, Justice and Parliamentary Affairs; Minister of Land Reforms, Cooperatives and Poverty Alleviation  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921150956_ba224a8c2d4c4434ed6e08e858d798b382a06c8606583841c935f927acb5d2f4.jpg" data-media-id="editor_2" data-image-id="20250921150956_ba224a8c2d4c4434ed6e08e858d798b382a06c8606583841c935f927acb5d2f4" data-rendition-name="original" width="1200" height="710" loading="lazy" alt="Anil Kumar Sinha"> </figure>  Anil Kumar Sinha was appointed as a Supreme Court Justice in 2016, and retired in 2023, after reaching the age limit of 65. Home Minister Om Prakash Aryal was formerly also given the responsibility of leading the Ministry of Law. Sinha specialises in tax and corporate law. Most recently, Sinha was a member of the Supreme Court bench that issued a verdict allowing an investigation into misappropriation of government land at Lalita Niwas in Baluwatar. Sinha played a significant role in the eventual impeachment of the then chief of the Commission for the Investigation of Abuse of Authority (CIAA) Lokman Singh Karki ion 2016 over legality of his appointment. He also resolved the dispute concerning the first dissolution of the House of Representatives by then-Prime Minister KP Sharma Oli on 20 December 2020. Madan Pariyar, Minister of Agriculture&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921180928_83a9a885704826f04b439cf5096063a0596544a750f78b5ff02ee82df43ca0cf.jpg" data-media-id="editor_3" data-image-id="20250921180928_83a9a885704826f04b439cf5096063a0596544a750f78b5ff02ee82df43ca0cf" data-rendition-name="original" width="640" height="640" loading="lazy" alt="Madan Pariyar"> </figure>  Madan Pariyar is a scholar with notable research contribution in several fields including poverty alleviation, inclusion, good governance, agriculture, industry resource management. He obtained his doctorate and master'sin enginerring from the Asian Institute of Technology in Bangkok and Bachelors of Science in Agricultural Engineering from the Allahabad Agricultural Institute in India. Bcck in 2011, the government appointed Pariyar the chair of the State Restructuring Commission (SRC) which was tasked with advising the Constitutional Assembly on the best possible model of federalism to be adopted for Nepal. Pariyar is also the chair of Samata Foundation that advocates for the rights of the Dalit people and their capacity building.&nbsp; OTHER NAMES Ajaya Bhadra Khanal, research director of the thinktank Center for Social Innovation and Foreign Policy (CESIF Nepal) is likely to be appointed the chief adviser to the Prime Minister. GenZ campaigners have also suggested the name of veteran Nepal Airlines aptain Vijay Lama for the Minister of Culture, Tourism and Civil Aviation. Rights activist Mohna Ansari, heritage conservationist Ganapati Lal Shrestha and Mansi Bhattarai, daughter of former Maoist prime minister Babauram Bhattarai have also been floated for various ministries. PM Karki has said she will limit her cabinet to 11 members for 22 ministries. Karki is likely to handle two or more ministries herself. At present, Kulman Ghising is leading three ministries while Om Prakash Aryal has two.&nbsp;

Nepal PM expands her Cabinet

Last week’s GenZ protest in Nepal was one of the shortest violent movements to topple a government in modern times. Social media played a crucial and unprecedented role in it. It was the digital space that documented, fuelled, rallied and magnified the protests on 8-9 September, as well as the negotiations to form an interim government afterwards. Even a week after, netizens are posting memes, real and AI-generated videos and jokes. This has been a powerful display of the power of ridicule and free speech that also reflects the resilience of the Nepali people and their ability to bounce back. Last week, as the Nepal Army held negotiations with wannabe leaders, the joke going around was about people being worried to venture out into the streets because they might be caught and made interim prime minister of the country.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025092004094_5cdfca4511a64facbf6a95c62a5abfb367a60e658d68ad502213516c7943f7dc.png" data-media-id="editor_0" data-image-id="2025092004094_5cdfca4511a64facbf6a95c62a5abfb367a60e658d68ad502213516c7943f7dc" data-rendition-name="original" width="617" height="487" loading="lazy" alt="Nepal's meme revolution NT"> </figure>  Another video showed protesters making pretend calls on landline phones outside the burning Parliament. A British tourist’s clip about why his country could not defeat Nepal in 1814 went viral.&nbsp; Public disillusionment with the corrupt political parties was at an all time high, and the ban on 26 social media platforms on 5 September was the last straw. This did not just infringe on freedom of expression, but was important for business and trade, and it cut off the Genz’s vital communication channels.&nbsp; Everybody perceived the ban which apparently was not popular within K P Oli’s CPN-UML as the prime minister’s authoritarian ways. The government failed to understand that social media was also distracting the public with entertainment, and it was an effective way to let off steam.&nbsp; When apps like Instagram, Messenger, YouTube, X, and Reddit were blocked, youth banded together calling for an anti-corruption rally via TikTok which was functioning. &nbsp;&nbsp; TikTok exploded with users sharing #NepoBaby clips of the children and relatives of politicians showing off their extravagant lifestyles funded by corruption. It was there for ordinary Nepalis to see: the vacations, fancy restaurants, designer bags, and opulent villas.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250920030952_f8d7a287c3c472c67ac45089e5588a4ba6e615e19119222a130710f7ef660a65.png" data-media-id="editor_1" data-image-id="20250920030952_f8d7a287c3c472c67ac45089e5588a4ba6e615e19119222a130710f7ef660a65" data-rendition-name="original" width="1570" height="1446" loading="lazy" alt="Nepal's meme revolution NT"> </figure>  Put to Nepali music, these clips were edited to be juxtaposed with the lives of impoverished Nepalis leaving as migrant workers. Some tried to defend the children of politicians, but most were enraged. In response, one Instagram handle called genz.nepal was set up. Its bio says: ’Fu*k this system!! Let’s slay and stay woke!!’ and made its first post on 6 September. It was an AI generated poster featuring a raised fist calling for a national protest two days later under the banner ‘Youth Against Corruption.’ Despite the ban on social media, they were still semi-functional with workarounds such as VPNs. News of the time and venue of the protest spread rapidly through cybersphere. ‘Let it be clear, our fight is not against one party or another, it is against the system itself,’ said one of the posts. ‘We mean the government, the opposition, the bureaucracy, the judiciary, and every structure that has betrayed the people.’ Other posts called on all to keep the protests peaceful, with no party flags or symbols, no leader, and no damage to property.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025092004094_f22baab05910305ea435045824b25b796d5630715e2e17c3f3c0991e8371843c.png" data-media-id="editor_2" data-image-id="2025092004094_f22baab05910305ea435045824b25b796d5630715e2e17c3f3c0991e8371843c" data-rendition-name="original" width="974" height="1156" loading="lazy" alt="Nepal's meme revolution NT"> </figure>  While noble, the decentralised nature of the protest also made infiltration possible, and violence inevitable. Loot and arson followed. With no clear leader, no one person could be held accountable. But perhaps if the protests had not escalated after the massacre on 8 September outside Parliament, the government would not have fallen at all. Past peaceful protests at Mandala never materialised into anything. Even the 8 September protests had started peacefully, with organisers urging participants not to indulge in violence. Outside Parliament, the commando unit of the APF were seen in wide-shared videos kneeling down to take aim at protesters with automatic weapons. With the social media ban lifted, online posts showing the dead with live round bullet wounds on heads and chests, some in college uniform, were shared widely especially through Instagram stories. Anger was boiling over at police brutality and many posts showed PM Oli with blood on his hands. All of this exemplified the brutality of the state against innocent students, and added fuel to the anger against the state. It was only a question when anger turned to revenge, and that came the next day with the targetted arson and looting.&nbsp; Social media took away any possibility of the government denying or censoring the truth as might have happened in the past at Tiananmen Square and other pre-Internet protests. Nepalis saw it all live on their phones, and the reaction was immediate.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025092004098_609488466dd350924f972b3c6bc7004bebe229d21281db2f8ca7468df5cce353.png" data-media-id="editor_3" data-image-id="2025092004098_609488466dd350924f972b3c6bc7004bebe229d21281db2f8ca7468df5cce353" data-rendition-name="original" width="1268" height="772" loading="lazy" alt="Nepal's meme revolution NT"> </figure>  On 9 September, the shocking visuals kept playing on loop. By mid-morning all three branches of the government were burning. Politicians chased and beaten, their houses set ablaze — and all this was also streamed in real-time.&nbsp; Social media was also where relatives and friends mourned the dead, came to terms with the reality, and shared their opinions about the days ahead. Nepal now has an interim government with Sushila Karki as the Prime Minister but in the days up to the announcement and even now, social media is rife with conspiracies from India’s involvement to military-royalist collusion, as well as a potential coup. DISCORD&nbsp; To the surprise of everyone, including the GenZ, the next prime minister of Nepal was being decided on Discord, a social media platform popular among gamers during Covid for its ability to host large groups with stable voice communication.&nbsp; Amidst much chaos, people memed, reacted, and spoke in the server which quickly grew to almost 150,000. Social media, for better or worse, is now a way of life with far reaching implications. Kathmandu Mayor Balen Shah, RSP chair Rabi Lamichanne and others appealed to their voter base using social media in the last election, but the same platform was shown to also build and destroy political careers.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025092005090_a1961c27e714ddb18b916c718724f235eb7ec3380487c7dc555c4395882d0c15.jpg" data-media-id="editor_4" data-image-id="2025092005090_a1961c27e714ddb18b916c718724f235eb7ec3380487c7dc555c4395882d0c15" data-rendition-name="original" width="1333" height="1000" loading="lazy" alt="Nepal's meme revolution NT"> </figure>  False narratives that are intelligently crafted using deep fake go viral in no time, and can be more damaging than other forms of communication. With high-stake early elections announced for March next year, the campaigning will be more on the digital platforms than door-to-door. There is a strong possibility for it to be used to disinformation and hate speech to incite voters, but equally it can be an interactive medium where citizens can raise their voices. &nbsp; Some candidates with digital-savvy backrooms designing memes and AI-generated visual content will be trying to set false narratives to fan populism. Because of global connectivity, the diaspora will have an unprecedented influence on how folks back home vote.&nbsp; So far, populist candidates have managed to ride on widespread public anger against the main parties and gather protest votes. This time, they may find that you cannot fool all the people all the time.&nbsp; Candidates can no longer hoodwink an unaware, docile populace anymore. People may not be able to read, but they have smartphones. And that gives them a say, an opinion and there must be space for them all as we build back stronger.

Nepal’s meme revolution

The videos are everywhere. K P Oli is lifted to safety by an Army helicopter as protesters amass at the gates of Baluwatar. The Deuba couple is bloodied by an angry crowd. Stashed with cash, homes of party leaders were were <a href="https://nepalitimes.com/news/kathmandu-burns-despite-pm-resignation">ransacked and set ablaze</a>.
Nepal went from an Oli-garchy to a youth-led caretaker government in two days. The idealistic anti-corruption GenZ campaign was penetrated by an array of forces intent on inflicting <a href="https://nepalitimes.com/opinion/the-day-justice-died">maximum damage on state institutions</a>.
Whatever their motivation, these disparate groups were all enraged by the kleptocracy. The state had looted the people for so long, many felt it was ok to loot the looters.
Prime Minister Sushila Karki has vowed to go after the corrupt, confiscate their ill-gotten wealth and confiscate property. As a former Chief Justice, Karki is known for her no-nonsense attitude and zero tolerance for corruption. The <a href="https://nepalitimes.com/news/nepal-interim-government-faces-first-hiccups">three ministers appointed </a>so far also have impeccable records for delivery and performance.&nbsp;
Young turks like Gagan Thapa of the Nepali Congress and Yogesh Bhattarai of the UML have <a href="https://nepalitimes.com/here-now/what-next-for-nepals-big-3-parties">pledged to clean up their own parties </a>with generational change in leadership. There are similar, but more subdued, voices within the Maoists and even the RSP.
For a spectacularly successful movement against corruption and for good governance, there could not have been a better outcome — even though in the public perception the GenZ revolt has been tainted somewhat by the infiltration and wanton destruction of government installations. Still, there is hope this catharsis will shake up the system and clean it up.
PARTNERS IN CRIME
Nepal’s development was systematically hollowed out by malfeasance for the past decades. But it was not just politicians and senior party leaders who were corrupt, <a href="https://nepalitimes.com/editorial/slapping-democracy">usually they were hand-in-glove</a> with the civil service. Bureaucrats largely escaped the wrath of the people last week although many were partners in crime.&nbsp;
The debate in Nepal for many years has always been, who is more corrupt: politicians or bureaucrats? Or, who corrupted who? Padmini Pradhananga, who headed Transparency International Nepal, says the two complement each other.
“Politicians and bureaucrats are two sides of the same coin,” she told us. “In fact, the bureaucracy, political parties, the judiciary, security apparatus, and government agencies were all colluding in state capture.”
The Land Revenue Office, the Departments of Survey, the Department of Roads and Tax Offices were all seen as dens of thieves, so protesters torched them all. The Department of Transport Management, long seen as being in the grip of middlemen, has shut all services.
To be sure, burning down a building does not reform make. It will take much more to uproot corruption because its tentacles have burrowed deeply into every sector of the state. When the <a href="https://nepalitimes.com/news/protest-grows-against-nepal-s-social-media-ban">government banned social media </a>earlier this month, Elon Musk posted on X that he would not register to pay taxes to a corrupt country like Nepal.
Corruption had undermined development,<a href="https://nepalitimes.com/here-now/relocate-reallocate-recover"> hurt Nepal’s investment climate, and contributed to the cost of doing business</a> which was passed down to consumers in terms of higher prices.&nbsp;
Diksha Kandel, a corporate lawyer, has seen it all. “Government offices created unnecessary hurdles every step of the way in everything from getting FDI approval to setting a date for a hearing. Everything has a rate,” she says. Even minor chores like share transfers and company address changes have taken her team months.
She adds: “The level of corruption at all levels of bureaucracy was frankly terrifying. At least with local political representatives, they are accountable to the people and get things done, even if it is to get re-elected.”
There is no shortcut to ending corruption, it has become a way of life. It was the main factor <a href="https://nepalitimes.com/news/nepal-s-8-september-massacre">fuelling youth rage</a>, and added to the increasing outmigration of Nepalis.
Pradhananga says impunity was institutionalised because the guilty never got punished because of corruption in the judiciary. She says: “If judges were to honestly prosecute criminals, corruption would go down by 75%.”&nbsp;
Pradhananga thinks if corruption is under control, it will only take two years to kick start development, for Nepal’s international image to improve, and foreign investment to start flowing in. “But for that we need to be run by efficient managers, not career politicians who have mistaken politics for a profession instead of a public service.”
<a href="https://nepalitimes.com/here-now/crime-and-or-punishment-in-nepal">Political interference</a> has defanged the Commission for the Investigation of Abuse of Authority (CIAA). The Special Court that presides over corruption and money laundering arising from public procurement cases also needs to be overhauled.
Revolutions often start with an agenda to eradicate corruption, only for it to be further entrenched with regime change, eroding public trust in democracy. The outcome of Nepal's GenZ protest, especially after the March election, should reward candidates with demonstrable efficiency and integrity.&nbsp;
Sonia Awale

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