The world’s largest corporations now rival most governments – not only in terms of revenue and assets, but also in their ability to shape political outcomes. Their power is reinforced by the immense personal fortunes of billionaires, which enable them to wield disproportionate influence over <a href="https://nepalitimes.com/news/big-beautiful-bills">public policies, laws, and regulations</a>.
Crucially, extreme concentrations of wealth and power could not have developed without the active support of policymakers, whether tacit or explicit. Consequently, being an oligarch is inherently precarious.
Crony capitalism may grant enormous advantages, but it also carries built-in risks. Chief among them is <a href="https://nepalitimes.com/editorial/slapping-democracy">political change</a>: new leadership, whether elected or imposed, may not extend the same protections or privileges to elites favored by the previous government.
That danger is especially acute in authoritarian or personality-driven regimes, where leaders’ whims often override institutional checks. The <a href="https://edition.cnn.com/business/timeline-elon-musk-trump-x-dg">on-again, off-again bromance</a> between US President Donald Trump and Elon Musk is an obvious example.
As <a href="https://nepalitimes.com/news/the-geopolitics-of-nepal-s-politics">geopolitical tensions</a> escalate, however, oligarchs are no longer contending solely with domestic challenges. Increasingly caught in global power struggles, they have become convenient targets for hostile foreign powers seeking to pressure or undermine the leaders they support.
The <a href="https://www.aljazeera.com/news/2023/4/12/us-and-uk-announce-new-sanctions-targeting-russian-ultra-wealthy">sanctions</a> imposed by the United States and the European Union on oligarchs linked to Russian President Vladimir Putin following the 2022 invasion of Ukraine are a case in point. While these measures have done little to change the course of the war, they have profoundly disrupted the lives and businesses of those affected.
Indian billionaires Gautam Adani and Mukesh Ambani have also found themselves in America’s crosshairs. Both have profited enormously from their ties to Prime Minister Narendra Modi – a fellow Gujarati – with their fortunes growing in tandem with his political ascent. This has made them useful bargaining chips in the ongoing trade negotiations between the US and India.
Read also: <a href="https://nepalitimes.com/news/nepal-and-the-us-india-tariff-tiff">Nepal and the US-India tariff tiff</a>, Sudiksha Tuladhar
To be sure, Ambani’s Reliance Group had already mastered the art of leveraging political influence to advance its business interests well before Modi rose to power. But Ambani’s alliance with Modi has pushed Reliance’s dominance to new heights. Adani’s rise, by contrast, is <a href="https://thewire.in/political-economy/why-gautam-adani-is-a-factor-in-india-us-ties">inextricably tied to Modi</a>, dating back to the latter’s tenure as chief minister of Gujarat.
Both oligarchs, particularly Adani, have relied on their proximity to Modi to expand their business empires, benefiting from regulatory reforms tailored to their interests and <a href="https://www.cnbctv18.com/aviation/adani-winning-bids-for-six-airports-former-head-of-privatisation-panel-explains-key-policy-changes-15898141.htm">acquiring state assets</a> through lucrative privatization deals, often without a public tender. They have also moved into new sectors by <a href="https://www.freepressjournal.in/business/full-timeline-of-how-gvk-and-adanis-changing-fortunes-sealed-mumbai-airports-fate">purchasing successful firms</a> targeted by Modi’s administration, effectively neutralizing potential competitors.
Moreover, Ambani and Adani have enjoyed privileged access to publicly owned banks, receiving favourable loan terms that allowed them to <a href="https://www.thehindu.com/news/national/companies-bought-over-by-the-adani-group-got-haircut-of-96-to-42-on-loans-from-public-sector-banks-congress/article68606029.ece">restructure</a> their debts with minimal scrutiny. Their political connections, evidenced by frequent appearances alongside Modi during his international trips, have helped them secure <a href="https://www.newsclick.in/%E2%80%98Beneficiaries%E2%80%99-Modi%E2%80%99s-Globetrotting-Adani-Ambani">major contracts abroad</a>.
These political alliances have translated into lenient regulatory treatment. In Adani’s case, allegations that he has engaged in stock manipulation through opaque shell companies in offshore tax havens – exposed by US-based <a href="https://www.reuters.com/world/india/adani-vs-hindenburg-research-what-you-need-know-2024-01-03/">short-seller Hindenburg Research</a> – were met with a muted response. Regulatory bodies like the Securities and Exchange Board of India declined to pursue a serious investigation.
Officially, Ambani has come under scrutiny for profiting from the <a href="https://www.nytimes.com/2025/08/09/business/india-russian-oil-ambani.html">resale of Russian oil</a>, effectively circumventing US sanctions, while Adani is being investigated for <a href="https://www.bbc.com/news/articles/c748y8e4093o">alleged bribery</a>. But Trump’s actions appear to be a calculated attempt to pressure Modi through his inner circle. Adding insult to injury, they come from a US president whom Modi has long described as a “<a href="https://www.nytimes.com/2025/07/31/world/asia/modi-trump-india-tariffs.html">true friend</a>”.
Modi has claimed that his sole concern is protecting Indian farmers – a statement that would surely come as a surprise to the farmer protest movement, which his government has long vilified and suppressed.
Trump, for his part, insists that his priority is securing a better deal for American producers and workers. In reality, many of his key demands are aimed at advancing the interests of US-based multinationals and those of <a href="https://economictimes.indiatimes.com/industry/services/property-/-cstruction/trump-calls-indias-economy-dead-but-trump-towers-earn-thousands-of-crores-from-gurgaon-mumbai-pune-and-other-cities/articleshow/123164276.cms">his own companies</a>.
But given Trump’s track record, it’s hard to imagine that personal grievances did not play a role. Relations between the two leaders have noticeably cooled since Modi <a href="https://economictimes.indiatimes.com/news/defence/narendra-modi-trump-phone-call-pm-modi-makes-it-clear-to-trump-us-played-no-role-in-india-pakistan-ceasefire-no-talks-on-india-us-trade-deal/articleshow/121922239.cms">refused to endorse</a> Trump’s dubious claim that he helped broker the recent India-Pakistan cease-fire – a narrative Trump had hoped would strengthen his bid for a Nobel Peace Prize. Modi’s refusal to play along effectively derailed that effort.
Trump and Modi are both shrewd and self-interested enough to recognise each other’s true priorities. By attacking Modi’s tycoons, Trump may have found the most effective pressure point to extract significant concessions from the Indian government.
If Modi yields, it won’t just be a costly political blunder but also a tragedy with far-reaching consequences for India and the world economy. © Project Syndicate
Jayati Ghosh, Professor of Economics at the University of Massachusetts Amherst, is a member of the Club of Rome’s Transformational Economics Commission.&nbsp;

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Trump targets Modi’s tycoons

Indian Prime Minister Narendra Modi and US President Trump have had a love-hate relationship. The two populist leaders have now fallen out, threatening a full scale Indo-American trade war. Many of Nepal’s exports to the United States like garments and rugs are also what India sells to the US. So, after Donald Trump announced additional tariffs on Indian exports to total 50%, Nepal could have an advantage. But this is only if the government plays its cards right and develops a long term strategy to boost export of items in which it has comparative advantage, and find new export products. The recent fallout ostensibly comes after India ignored western sanctions and continued to purchase Russian oil, and could be linked to Trump’s meeting with Russian president Vladimir Putin in Alaska on Friday in which he wants to use India as a bargaining chip. “Trump has not honoured any international trade agreements, making the global trade regime unstable,” says economist Posh Raj Pandey. This could mean that the US could still pull back on tariffs, just as he has given China a reprieve of another 90 days this week. Compared to other South Asian countries, including India, Bangladesh and Sri Lanka, Nepal faces a relatively low tariff rate of 10%. Theoretically this could put Nepali exports at an advantage for items like garments and other products like tea. But it also carries its own risks.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250814090852_1d2fe71e4f7c5f82d72240714c6a7a140d59230096eac995ca3264a5c2ed00a2.jpg" data-media-id="editor_0" data-image-id="20250814090852_1d2fe71e4f7c5f82d72240714c6a7a140d59230096eac995ca3264a5c2ed00a2" data-rendition-name="original" width="1266" height="860" loading="lazy" alt="Nepal-US trade graph NT"></figure>  Some 64% of Nepal’s imports are from India, and US tariffs could make those products more expensive. A stronger USD vis-a-vis the INR would also devalue the Nepali rupee and increase the cost of imports from India of raw material for its exports, for example, garments. The manufacturing sector in Nepal has never reached its true potential, its main export items to India are soya and palm oil which are actually just bulk imports of the same oils repackaged for export. Domestic production lacks capacity to keep up with demand. “Nepal’s productive capacity must be increased in order to boost exports, and the market should be diversified for Nepal to take advantage of a competitive market,” says Pandey. Indian exporters could try to reroute their finished products through the open border with Nepal, changing the tag from ‘Made in India’ to ‘Made in Nepal’ to avoid US tariffs. China did this by relocating its factories to Vietnam in the past, but such re-labelling may result in punitive measures. “It is not worth the risk, we should be careful. Besides, there is no domestic value addition in such cases,” states Kharel. Nepal has a trade deficit with the US of Rs7.64 billion, which is probably why Trump has not increased tariffs on Nepal’s exports to more than 10%. Nepal’s main exports to the US are ready-made garments, dog chews and carpets. Nepal had preferential market access to the US, but did not take much advantage of it. “Nepal’s garment export to the US stands at Rs2 billion, and we could try to increase production and export more to take advantage of relatively lower tariffs, but reaching production worth Rs10 billion is not practical and Nepal does not have the capacity either,” says Pandey. Furthermore, if Nepal increases exports to the US and creates a trade surplus, it may raise eyebrows in Washington and Nepal could be slapped with higher tariffs if Trump is still around. In a modern multilateral world, Donald Trump has pressed ahead unilaterally, using tariffs to arm-twist allies to get all kinds of concessions, even those not related to trade. Trump thinks he is doing this to protect the domestic US industry, but it is already backfiring with higher domestic consumer prices. Adds Pandey, “Trump has used the tariffs as a Swiss Army knife to cut through everything. The tariffs are used as an instrument for national security, to increase investment and even to end conflict.” Trump claimed he initiated the ceasefire between India and Pakistan over their recent conflict by threatening both countries with tariffs. New Delhi denied Trump’s claims, while Pakistan acknowledged his role, even nominating him for the Nobel Peace Prize. REGIONAL HEGEMON “India had wanted to establish itself as a regional hegemon by aligning itself to the West,” says Paras Kharel, executive director at South Asia Watch on Trade, Economics, and Environment (SAWTEE). But the tariff tiff with India may have thrown that strategy off kilter. Most countries use diplomatic channels to resolve existing trade issues. However, Trump has chosen the path of coercive diplomacy, which was seen in his response to issues like migration and the use of veto power at the United Nations. India is the world's third largest consumer of oil, with Russia accounting for 30% of the country’s oil imports. Russia was also the largest arms supplier for India, but that has decreased in recent times, as India shifted towards the US, Israel and France. India is the largest arms importer in the world, and is making more and more purchases from American manufacturers of weapons systems. But India has already retaliated by cancelling planned imports of military equipment from the US. Uncertainty looms large as Trump’s volatile flip-flopping upends global trade. The unpredictability was underlined by Trump extending his tariff truce for China by 90 days, saying Beijing "has been dealing with it nicely". The tariff threat on Indian exports could also be similarly postponed if New Delhi appeases Trump with compromises. But Modi seems in no mood to give up India’s national interest, especially by allowing American agricultural imports. Modi is all set to visit China for the first time in seven years for the Shanghai Cooperation Organisation (SCO) Summit on 31 August in Tianjin. This could signify the beginning of a major realignment in geopolitical alliances in the Asia-Pacific. Nepal is a small player, but when India and China are buffeted by global turbulence, it will rock Nepal as well. Nepal therefore needs to boost trade capacity to take advantage of new opportunities. Says Pandey, “Nepal needs to diversify its exports, find new markets and seek alternative finance sources.”

Nepal and the US-India tariff tiff

<a href="https://nepalitimes.com/news/trump-shock-wave-hits-nepal">US President Donald Trump</a>’s announcement of hefty trade tariffs last week has reverberated worldwide, causing turmoil in <a href="https://www.bbc.com/news/live/ce3qnyr7y94t">international trade and stock markets</a>.
The Trump administration announced a baseline 10% tariff on all goods from every country entering the US market, including products from Nepal. But other countries got <a href="https://www.theguardian.com/business/2025/apr/03/trumps-tariffs-the-full-list">slapped with even higher tariffs</a>: 20% for goods from the European Union, 26% on Indian exports to the US, and a massive 54% on China.&nbsp;
Many countries have imposed additional reciprocal tariffs on US goods, and there are fears of a global recession. It has been compared to dropping a nuclear bomb on the global trading system.
The tariffs will increase customs duty on foreign goods entering the US, ultimately increasing their prices for end consumers. This may reduce the competitiveness of imports, as a result of which there could be a decline in exports from China, Vietnam, India, Bangladesh, Sri Lanka and other countries that export manufactured goods to the US.
The US is Nepal's second-largest export market, with goods worth Rs17.31 billion exported during the last fiscal year. These include <a href="https://archive.nepalitimes.com/article/nation/Churpi-gaining-popularity-outside-Nepal,1048">chhurpi dog chew</a>, woolen carpets, <a href="https://nepalitimes.com/news/passionate-about-pashmina">pashmina</a>, ready-made garments, and handicrafts.&nbsp;
Dog chews and woolen carpets account for more than half of Nepal's total exports to the US. Nepal exported nearly 1,000 tonnes of dog chews to the United States.&nbsp;
<a href="https://nepalitimes.com/news/11-56-25-april-2015-wkc9q2an">Following the 2015 earthquake</a>, the US granted Nepal duty-free treatment for 77 items under its <a href="https://np.usembassy.gov/nepal-trade-preference-program/">Nepal Trade Preference Program</a> (NTPP). The period for these non-reciprocal preferential trade benefits will end on 31 December 2025.
It is not clear if the 10% tariff will apply to those items during the course of this year, and the ultimate fate of the NTPP.&nbsp;
“The NTTP was passed as law by the US Congress a decade ago, so we can assume that the current administration will not revoke it through an executive order,” says Ravi Shankar Sainju, also the former joint secretary of the Ministry of Industry, Commerce and Supplies.
But he adds that the US is unlikely to extend the trade benefit to Nepal after December, as the Nepal government has not taken the necessary steps to renegotiate the NTTP.&nbsp;
Kiran Saakha, president of the Nepal-USA Chamber of Commerce and Industry, also doubts that the NTTP will end immediately, adding: “The US Embassy was unable to provide us with a clear answer when we asked about the program. But as far as we understand, the benefits Nepal has received under the NTPP remain in place for now.”
Nepal has not been able to increase exports of the 77 specified products and reap full benefits of the zero tax facility. However, even with recent developments, economists say that a 10% duty on Nepali exports will not affect Nepal much and may even benefit the country,
<a href="https://archive.nepalitimes.com/article/nation/products-made-in-nepal,3345">Exports from Nepal </a>would still be cheaper in the US market than goods from countries in the region which have had much higher tariffs placed on them, like India (26%), Pakistan (29%) Bangladesh (37%), and Sri Lanka (44%).
“The countries in the region export goods to the US that Nepal can produce,” says economist Poshraj Pandey. “With the US having imposed a relatively lower tariff on Nepal, there is a potential to actually increase exports to the American market.”
Saakha of the Nepal-USA Chamber of Commerce and Industry, agrees that the demand for Nepali goods could increase, but adds that the country must be more competitive.
Nepal had a <a href="https://nepalitimes.com/multimedia/a-post-mortem-of-nepal-s-garment-boom">booming ready-made garment industry</a> leading up to the early 2000s with 500 industries employing 85,000 workers, and accounted for a quarter of the country’s total exports. But the termination of the WTO Agreement on Textiles and Clothing (ATC) in December 2004 ended quotas that countries like Nepal had benefitted from. Currently, cotton and polyester garments from Nepal are subject to 18% and 20% customs duty respectively in the US market.&nbsp;
“Nepal has the opportunity to increase the export of ready-made garments once again,” says Bhim Kumar Giri of the Garment Association Nepal (GAN). “It is time to dust off our old machines and bring them back into production. Since garment exporting countries like India, Bangladesh, and Vietnam have been slapped with high tariffs, Nepal’s products will become competitive once again.”
But to take advantage of the tariff differential, Nepal has to be much more investment-friendly and transparent than it is now. While analysts discuss hypotheticals, there are doubts as to the US government’s commitment to its new tariff announcement.&nbsp;
“We cannot be certain about Trump’s trade policies, he may reverse it just as suddenly,” says economist Pandey.
“There is cautious optimism about Nepal being less affected by Trump’s tariffs, but Nepal should not count its chicken before they hatch,” says trade expert Ravi Shankar Sainju. “Because daily expenses for the average American have risen, there may be less demand for Nepal’s exports.” &nbsp;
In the past, high production and transportation costs and low productivity have hurt the competitiveness of Nepal’s products in the international market. Raw materials required to produce goods in Nepal have to be imported, and the country’s landlocked location increases cost of production.
Former GAN president Chandi Prasad Aryal says the fact that Nepali exports have lower tax rates will be meaningless unless the Nepal government removes existing hurdles to production and export, ensures domestic production of raw materials, and promotes productivity.&nbsp;
“These new trade dynamics will be a wasted opportunity unless we can facilitate competitive production within Nepal,” he adds.
Nepal can benefit from the new US trade policy, but experts warn that Nepal must not misuse it. With high customs imposed on goods from neighbouring nations, there is a risk of those goods entering Nepal markets to be re-exported as <a href="https://nepalitimes.com/banner/from-heads-to-toes">Made in Nepal products</a>. &nbsp;
Says Kiran Saakha: “Government and entrepreneurs must be vigilant in preventing crimes that could lead to Nepal losing its credibility in the international market. Otherwise, the US might just as easily take away the small concessions it has currently granted to us.”

Trump tariff to benefit Nepal

<a href="https://nepalitimes.com/news/ball-in-balen-s-court">Nepal’s newly-installed Prime Minister Balendra Shah</a> unveiled his Council of Ministers after taking the oath of office on Friday in Kathmandu.&nbsp; Besides Nepal's pre-existing problems, his team will immediately have to deal with the fallout of the West Asia conflict to satisfy an electorate impatient for change. The Rastriya Swatantra Party (RSP) won a majority in the 5 March election and capped the Cabinet size at 15. Shah, a structural engineer and musician, himself has taken charge of the Defence and Industry Ministries. There has been an attempt to make the Cabinet inclusive with women in five of the new portfolios.&nbsp; After much negotiation, the powerful Home Ministry, a bone of contention between Shah and RSP Chair Rabi Lamichhane, has gone to Sudan Gurung, a hitherto little-known figure who <a href="https://nepalitimes.com/here-now/who-or-what-is-hami-nepal">rose to prominence after the September GenZ protest</a> and won the election from Gorkha-2.&nbsp; Gurung will be in charge of Nepal’s internal security apparatus and maintaining law and order. And with Gurung, a close ally of the Prime Minister, in charge, some note the Home Ministry will be a hook for Shah if Lamichhane, with his share of controversies, steps out line.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_c7725ea5fb9ffbf96df25a7b3122520b7ae3ee10548aed3f37781a7e5440e51a.jpg" data-media-id="editor_2" data-image-id="20260327090324_c7725ea5fb9ffbf96df25a7b3122520b7ae3ee10548aed3f37781a7e5440e51a" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>  Notable RSP leaders, including vice-chair DP Aryal, were said to have been vying for the portfolio.&nbsp; Gurung is the founder of the non-profit Hami Nepal, which worked primarily in earthquake relief in 2015, and emerged onto the national stage during negotiations to appoint Sushila Karki as interim PM after the unrest. He was also involved in key negotiations that cemented Balendra Shah and Rabi Lamichhane’s political partnership in the runup to the election.&nbsp; Most new Cabinet members are not just first-time ministers, but are also freshmen lawmakers. Many are experts in their fields. Finance Minister Swarnim Wagle is an <a href="https://nepalitimes.com/here-now/nepal-needs-to-rebrand-itself">economist </a>with degrees from the London School of Economics and Harvard, and was previously Chief Economic Advisor at the UNDP Regional Bureau for Asia and the Pacific, and also served in Nepal’s National Planning Commission.&nbsp; Previously a member of Nepali Congress, Wagle exited the party in 2023 following differences with top leadership, and joined the RSP. Wagle won a by-election from Tanahu-1 in 2023 and won again from the same constituency in this month’s election.&nbsp; Shishir Khanal, who heads RSP’s foreign affairs department, has been appointed Minister of Foreign Affairs. &nbsp;Khanal is co-founder of Teach For Nepal, was briefly Education Minister when the RSP was part of the the Pushpa Kamal Dahal-led coalition government in 2023.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_b1a670bac12e2bf4df955134f58c8de7718d48f6be4e1f2df7c7c52f82e36e42.jpg" data-media-id="editor_4" data-image-id="20260327090324_b1a670bac12e2bf4df955134f58c8de7718d48f6be4e1f2df7c7c52f82e36e42" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>  Law Minister Sobita Gautam is a lawyer by profession and worked in governance and public policy before she was elected as the youngest MP in the 2022 election.&nbsp; Health Minister Nisha Mehta is a nurse and became a lawmaker under the Proportional Representation system in this election which swept the RSP to power with a near two-third majority.&nbsp; Education Minister Sasmit Pokharel, a first-time MP elected from Kathmandu-5, served as an aide to Balendra Shah when he was mayor of Kathmandu and a was member of the KMC City Planning Commission.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_5ed794d7bf0cac2844277521810225c4355746b9c3f7369f70cacc878c94641f.jpg" data-media-id="editor_5" data-image-id="20260327090324_5ed794d7bf0cac2844277521810225c4355746b9c3f7369f70cacc878c94641f" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>  Biraj Bhakta Shrestha is Energy Minister, and also served as the Minister for Youth and Sports in the Dahal-led coalition government in 2024. Before joining RSP, Shrestha was elected to the Bagmati Provincial Assembly in the 2017 elections representing the r<a href="https://nepalitimes.com/here-now/rsp-s-activist-dna">eformist Bibeksheel Sajha Party</a>. He will immediately face the challenge of addressing the <a href="https://nepalitimes.com/news/rough-road-ahead-for-new-nepal-rulers">impact of the West Asia war,</a> including rising petroleum prices and a shortage of cooking gas. Sita Badi, who was elected through the PR system, is Minister for Women, Children and Senior Citizens. She was born and brought up in the underserved and marginalised Badi community in Surkhet and has been advocating for the rights and welfare of women, children, and minority communities. Other ministers include RSP spokesperson Pratibha Rawal as Minister for Federal Affairs and General Administration as well as Land Management, and Gita Chaudhary as Minister for Agriculture, Sunil Lamsal is Physical Infrastrucutre, Transport, and Urban Development Minister, Khadka Raj (Ganesh) Paudel as Tourism and Civil Aviation Minister. Dipak Sah is the Labour and Employment Minister, and Bikram Timilsina is Communication Minister.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_b67c2d199d4897031583a5b7ec7ce43e88771167696e6161665eeb5fca25d3ed.jpg" data-media-id="editor_8" data-image-id="20260327090324_b67c2d199d4897031583a5b7ec7ce43e88771167696e6161665eeb5fca25d3ed" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>  Meanwhile, RSP vice-chair DP Aryal, who many thought would be home minister because of his proximity with Rabi Lamichhane has been proposed as Speaker of the House.&nbsp; Aryal previously served two brief stints as the Minister of Labour when RSP was part of the RSP’s coalition governments in 2023 and 2024. As minister Aryal came <a href="https://nepalitimes.com/editorial/skeletons-in-the-cabinet-k5x6py1v">under scrutiny </a>for his involvement in an employment agency that was investigated for illegal acquisition of wealth in 2020. If appointed House Speaker, Aryal will be expected to play a neutral and non-partisan role in Parliamentary affairs. &nbsp; With the full Cabinet announced on Friday, Prime Minister Shah and his team now have their work cut out for them. &nbsp;The government’s first priority will be ensuring the safety and long-term security of the almost two million <a href="https://nepalitimes.com/here-now/migrant-workers-in-wartime">Nepalis living and working in the Gulf</a> amid the ongoing conflict in the region, and taking steps to cushion Nepal’s economy from the Israel-US war on Iran. The new leaders will also be tasked with implementing the findings of the Karki Commission report on the September violence that paved the way for the election and the rise of the RSP. &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_69b36bc62737e44ade4080be36688f9c2f92201356e1df2072cef8ecc6a9be5d.jpg" data-media-id="editor_11" data-image-id="20260327090324_69b36bc62737e44ade4080be36688f9c2f92201356e1df2072cef8ecc6a9be5d" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> <figcaption>Snapshots from PM Balen Shah's swearing-in ceremony</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_69b36bc62737e44ade4080be36688f9c2f92201356e1df2072cef8ecc6a9be5d.jpg" data-media-id="editor_12" data-image-id="20260327090324_69b36bc62737e44ade4080be36688f9c2f92201356e1df2072cef8ecc6a9be5d" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_8646d490883154f696bcdc6e2375084419f2eefaaf0ef0c7e2710aa6e2d94a8a.jpg" data-media-id="editor_13" data-image-id="20260327090324_8646d490883154f696bcdc6e2375084419f2eefaaf0ef0c7e2710aa6e2d94a8a" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_89d17d6584593be1eb23eb1d4872c3b7c600e1620f3aca48dbff4838364a1e3c.jpg" data-media-id="editor_14" data-image-id="20260327090324_89d17d6584593be1eb23eb1d4872c3b7c600e1620f3aca48dbff4838364a1e3c" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>  &nbsp;Full list of ministers: Prime Minsiter: Balendra Shah Home Minister: Sudan Gurung Finance Minister: Swarnim Wagle Foreign Affairs Minister: Shishir Khanal Law, Justice and Parliamentary Affairs Ministry: Sobita Gautam Energy, Water and Irrigation Minister: Biraj Bhakta Shrestha Education Minister: Sasmit Pokharel Physical Infrastrucutre, Transport, and Urban Development Minister: Sunil Lamsal Communication and Information Ministry: Bikram Timilsina General Administration Minister: Pratibha Rawal Women, Children and Senior Citizens Minister: Sita Badi Health and Population Minister: Nisha Mehta Agriculture Minister: Gita Chaudhary Culture, Tourism and Civil Aviation Minister: Khadka Raj (Ganesh) Paudel&nbsp; Labour Minister: Dipak Sah

Nepal swears in new Cabinet

Rivers have been the lifelines of civilisations with their dynamic ecosystems providing vital services for human survival and ecological balance through the ages.&nbsp; But accelerating anthropocentric footprints are causing severe, and often irreversible, damage to river systems across the world, including those across High Asia, a region that sustains nearly a fourth of the global population downstream. An example is the <a href="https://nepalitimes.com/here-now/how-the-bagmati-civilisation-is-becoming-uncivilised" target="_blank">Bagmati River</a> that courses through Kathmandu, crosses the Himalayan foothills to join the Ganga in India. A river that once shaped the <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/when-it-comes-to-water-pollution,3196" target="_blank">Kathmandu Valley Civilisation </a>is now a polluted and biologically dead water body constricted by urban sprawl, choked by construction debris, chemical waste and untreated sewage.&nbsp; The loss of a sacred river is tragic enough, but its hazards related to health, life and livelihoods are not limited to the Valley, nor is its enormity fully gauged by the metrics of fatality, income loss, flood return periods, runoffs, embankment failure.&nbsp; It is a systemic collapse of ecological integrity, socio-economic stability and cultural heritage, affecting its downstream users as well. The death of Bagmati is a peril for a population size way bigger than circa 5 million residents of Kathmandu Valley. The degradation started in the 1980s and has accelerated. Why has not enough been done to save this iconic river that runs through Nepal’s capital?&nbsp; The Bagmati River Basin Improvement Project (BRBIP) was designed to make headway in restoring the river with a sewage treatment plant, dams for storing water to support dry-season runoff, recharge groundwater, creation of <a href="https://archive.nepalitimes.com/page/resurrecting-bagmati-the-river" target="_blank">green biodiversity corridors</a> along the river bank to also serve as recreation areas, reduce the urban heat island effect, and also provide cultural continuity. The project also envisages collection of hydrological data for managing Bagmati multipurposewater systems and providing flood forecasts and early warnings aimed at protecting lives and property, among other things. Most importantly, the project takes the integrated water resource management approach, which, in principle, is a holistic and collaborative way of managing all elements of the water cycle to ensure water security, public and environmental health and amenity.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260329040336_9605240fa8c7d649ce49fbe43565130e3187e979338ccf959c4e9b8c581b7a4c.jpg" data-media-id="editor_3" data-image-id="20260329040336_9605240fa8c7d649ce49fbe43565130e3187e979338ccf959c4e9b8c581b7a4c" data-rendition-name="original" width="2126" height="1577" loading="lazy" alt="Bagmati NT"> </figure>  This should pave the way for managing a river as a connected ecological, social, and economic system by enabling coordination across agencies and disciplines, stimulating technological innovation and financial investment. The success of this approach depends on long-term political will and commitment that transcend political cycles, but also needs strong community and civil society in defining issues and proposing solutions, creating and sharing knowledge, taking independent action to inform practice, monitoring and evaluating policies, and participating in public decision-making. Civil society, especially, in making the <a href="https://archive.nepalitimes.com/page/encounter-with-bagmati-river" target="_blank">revival of the Bagmati River</a> a pressing governance issue. The Bagmati Action Plan 2009, a precursor to the BRBIP, was designed in response to lawsuits filed in 2000 and 2004 by an independent legal practitioner of Kathmandu against waste dumping in the river.&nbsp; It took him almost two decades of legal battle for Nepal’s Supreme Court to pass orders for mandatory septic tanks in all homes in Kathmandu Valley, relocation of squatters from Bagmati river banks to government-built houses, and embargo on dumping and burying garbage on the banks of the river and its tributaries. Despite court orders, however, actual results have been unsatisfactory. Restoration of Bagmati barely made it to any political debate or electoral manifesto this time. Treatment plants have not been operational for years, yet no one is held accountable. The population ignores waste segregation or single-use plastic rules to check littering.&nbsp; The current condition of the river therefore seems to have more to do with the lack of public awareness and behaviour change than the failure of various master plans. Why does the deep danger of a dead river fail to arouse widespread civil society concern, let alone action? The apathy is perhaps underlined by an innately anthropocentric understanding of the river as a mere resource to be exploited, rather than the backbone of existence.&nbsp; Such a paradigm shift is possible when river or river systems are understood to be necessary for &nbsp;a harmonious coexistence with human populations. The more pertinent question is not whether a dead river can be restored because there are many examples from around the world where that has been successfully achieved. It is whether we choose to restore our rivers for intergenerational equity. This would require a holistic perspective and political will to revive reverence for a river system so that its symbiotic relationship with human settlements can be restored. Roshni Gurung is Research Assistant, River Basins at the International Centre for Integrated Mountain Development (ICIMOD).

A lifeline becomes liability

On Friday, Balendra Shah is taking his oath of office as Nepal's prime minister in a capital city of which he was a mayor till six months ago.
At 35, he will be among Nepal’s youngest prime ministers. His reticence and reclusiveness have reinforced his brand as a doer rather than a talker. This was a persona he cultivated as mayor of someone who cleaned up the city by managing garbage. But he also chased off sidewalk vendors in an effort to ‘beautify’ the city.&nbsp;
After being elected, Shah did not attend RSP events in official capacity, and he was absent at an MP orientation last week.&nbsp;
His refusal to engage with the press, and even stopping to post on social media, have added to the air of reclusiveness. But as prime minister, he may have to communicate more even if it just to stop conspiracy theories and intrigue.&nbsp;
The people he will now represent would like to know, and have a right to know, what he is up to. Otherwise the feeling will grow that Nepal is entering uncharted territory. Governance, the economy and investment do not like uncertainty.
Political scientist Pyakuryal notes that calling Balen a 'man of few words' may serve as a useful epithet if he governs with quiet efficiency rather than fanfare. "But as Prime Minister, he must engage the nation’s will, not simply manage from above," she says.
She adds: "The real test lies in his choice of style: will he lead exclusively, keeping decisions close, or inclusively, opening space for dialogue and shared ownership of governance?"
Nepal's newly-elected lawmakers were sworn in on Thursday. And once sworn in as PM on Friday, Balendra Shah is set to appoint a ‘minimalist’ Cabinet. Although the Constitution caps the size of the Council of Ministers at 25, the party has decided to stick to maximum 18 and not split ministries to accommodate loyalists as was done in the past.&nbsp;
&nbsp;"The Cabinet must support the leadership of the Prime Minister while ensuring accountability to the Parliament,” notes political scientist Sucheta Pyakuryal. “But the questions that come to mind are: will the RSP MPs readily submit to Balen’s leadership and is Balen’s absence from the party’s official events an unwillingness or hesitation to submit to the party?”
Prime Minister Sushila Karki and her ministers ended their interim tenures this week, and she was lauded for upholding her commitment to hold a free, fair and peaceful election. But her image was tarnished for her reluctance to release the investigation report on the September violence, as well as recommending her Home Minister Om Prakash Aryal for a National Assembly seat, and her personal secretary to the National Trust for Nature Conservation. President Ram Chandra Poudel has put Aryal’s nomination on hold. &nbsp;
The Investigation Commission report leaked on Wednesday said the state failed to stop the firing on protestors by Police on 8 September and blamed the Army for not preventing the arson next day. It recommended the prosecution of prime minister KP Oli, home minister Ramesh Lekhak, and Police chief Chandra Kuber Khapung.
Notable names said to be in consideration for the Cabinet include many who are experts in their fields, and RSP wants a young lawmaker as Speaker. The new government will plunge headlong into the economic fallout of the West Asia war.
RSP, with its near two-third majority, does not have to placate any coalition partner, so Nepal is at long last expected to have a stable government after 35 years. Despite hopes that there will not be the usual horse-trading this time, there is tension between supporters of RSP chair Rabi Lamichhane and Balendra Shah. The two have been negotiating in hotel rooms for Cabinet posts for loyalists.&nbsp;
Shah’s larger-than-life online persona and nationwide appeal delivered the RSP its overwhelming electoral victory this month, and this makes the party’s core leadership beholden to him. To what extent is Shah willing to meet Lamichhane’s demands is the critical question, and we will know the answer by this weekend.
Says Pyakuryal: “Because this election showcased personality politics rather than the regular party politics, the dangers of ego-clashes, power-tussles and intraparty realpolitik become very real and this kind of equation can greatly hamper the spirit of democracy, representation and collective good."

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 <figcaption>Animation: ANUP TAMU</figcaption>
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Ball in Balen’s court

Nepal’s new government hit the ground running with the arrests of former Prime Minister K P Oli and home Minister Ramesh Lekhak early Saturday morning.&nbsp;
Their dramatic detentions followed an inquiry commission report recommending that Lekhak, Oli, and former Police chief Chandra Kuber Khapung be investigated and prosecuted for negligence in failing to stop the killing of 19 young protesters by security forces during the protests on 8 September.&nbsp;
Interim PM Sushila Karki’s government faced considerable criticism from GenZ activists at the end of her 7-month tenure for failing to release the report and hold the previous UML-NC coalition to account.&nbsp;
Karki had left any decision on the report’s findings to new RSP government, but her government released it after the content was leaked earlier this week, a day before Nepal’s newly elected lawmakers took their oath of office.
By making the arrests of Oli and Lekhak as its first order of business, the new government, and especially Home Minister Sudan Gurung and Prime Minister Balendra Shah, have tried to show that they are decisive and mean business.&nbsp;
It has been hailed by many as signalling that Nepal’s new and young leadership will back up its pledges with action. However, others including the UML and some constitutional experts, say that the arrests have not followed legal procedures. The UML has mobilised its affiliated groups to start nationwide street protests.&nbsp;
The main divide seems to be over the perception that the new government is only interested in justice for the perpetrators of the 8 September Parliament massacre, and not against those who organised arson and vandalism of government buildings, homes of politicians, businesses and the media the next day.&nbsp;
While some celebrate what they see as the beginning of justice for the victims and survivors of the September violence, political analysts and legal experts express alarm over a lack of adherence to the rule of law.&nbsp;
K P Oli has a lot of experience being behind bars. He was jailed a dozen times in 1970s by the Panchayat regime for his extreme left activism and then spent 14 years in prison between 1974-1988.
Critics argue that the former leaders were denied due process and label their arrest a “political vendetta."
RSP supporters had made similar arguments in October 2024 and April 2025 that the arrest of party chair Rabi Lamichhane over misappropriation of funds from numerous cooperatives were &nbsp;politically motivated.
‘What is happening is unacceptable,’ wrote former minister and diplomat Nilamber Acharya wrote on Saturday morning. ‘Such acts of revenge and crackdowns do not bode well.’
In response to accusations of the arrests being partisan and politically-motivated, Home Minister Sudan Gurung took to social media, saying that the new government is fulfilling its promises: ‘No one is above the law,’ he wrote. ‘This is not revenge, it is the beginning of justice. I believe now that the nation will now take a new direction.’
There is also concern the new leadership has jumped the gun to implement the findings of the inquiry commission, which has itself been criticised in some quarters for concentrating on the events of 8 September rather than investigating the perpetrators of the anarchy on 9 September.&nbsp;
The first meeting of the Council of Ministers made the immediate implementation of the GenZ Movement Inquiry Report its first priority.
But there are questions as to whether the execution of the report will be impartial. Home Minister Gurung will now dictate how the recommendations &nbsp;will be conducted, since he is himself referenced in the report in connection with the unrest on 9 September.&nbsp;
In fact, the report also outlines how supporters stormed Nakhu Prison on 9 September to organise Rabi Lamichhane’s jailbreak. Will Minister Gurung also go after his own party's leadership? &nbsp;
With the UML already calling for nationwide protests against the detention of its leaders, there is concern that Nepal is plunging straight into turmoil instead of stability.
The UML leadership has been unrepentant about the 8 September events. Oli has defiantly blamed infiltration and outside forces for the killings, and unlike the Nepali Congress the UML has not managed its own leadership changeover.&nbsp;
The NC under Gagan Thapa as well as the Nepali Communist Party of Maoist leader Pushpa Kamal Dahal have so far been silent about the detentions even though former Home Minister Ramesh Lekhak is from the NC.
Oli and Lekhak’s arrests will now be challenged in the courts. But their detention also signals to Nepal’s political old guard that the tables have turned: legacy leaders cannot be complacent and assume they will disappear from national consciousness for past deeds without being held accountable for what happened during their watch.
The RSP government under Prime Minister Balendra Shah seems determined not to let bygones be bygones. But while that is all and well, it remains to be see whether the party can deliver on the need of the electorate for tangible governance reform.
The danger is that the new rulers may be defined by the same tactics of political revenge as its predecessors in the name of meting out justice.