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The growing public support for the reinstatement of the monarchy and Hindu state reflects the failure of the current political system to meet people’s expectations in the aftermath of big political changes. It signals that the dramatic political changes between 2006 and 2015 have failed to deliver on the promises of stability, inclusion and economic opportunity. In less than a decade, Nepal transitioned from a monarchy to a federal democratic republic, from a Hindu kingdom to a secular state, and from an exclusionary to an inclusive governance framework. These changes raised hopes that democratic transformation would lead to economic progress and political stability. But nearly a decade later, those expectations have largely remained unfulfilled. The resulting disillusionment has opened the door for royalist forces to re-enter the political stage to advance their long-standing agendas. 

Departure from the past

While royalist protests are not new, recent developments mark a significant departure from the past. On March 9, former King Gyanendra returned to Kathmandu after a week-long vacation in Pokhara. An estimated 14,000 people gathered to welcome him at the airport—likely the largest pro-monarchy rally since the monarchy was abolished in 2008. This show of support alarmed mainstream political parties, especially in light of the rising unrest seen in other South Asian countries mainly like Bangladesh and Sri Lanka.  For the first time, major political parties see treating the royalist movement as a serious threat. On March 28, a large pro-monarchy demonstration in Kathmandu turned violent, resulting in two deaths and extensive property damage. The government responded with a crackdown, arresting several leaders of the movement. Although this initially weakened the protest, royalists have since regrouped and announced an indefinite protest in Kathmandu from May 29.

Why is the call for monarchy growing?

There are multiple reasons behind the growing surge of pro-Monarchy protests.

First, although all governments formed after the 2015 constitution came through free and fair elections, meeting the basic criterion for democratic legitimacy, they have failed to deliver governance, economic development and public services. Corruption, inefficiency and lack of accountability have disillusioned voters. Though the system has electoral legitimacy, it lacks performance legitimacy which is equally important for the sustainability of any political system.

There is growing disappointment with the key leaders of major political parties who were once admired for their role in bringing democracy. Many now see them as entrenched in power, having dominated politics for over three decades without delivering meaningful changes. After the promulgation of the constitution in 2015, the public hoped that political parties would reform, become more democratic internally, and respond better to people’s needs. 

However, those hopes were dashed. 

The 2022 election signaled a public desire for alternatives to traditional political forces. New parties and some independent candidates emerged with unexpected success. For instance, the Rastriya Swatantra Party (RSP) became the fourth largest party in parliament with a platform focused on governance reform. In Kathmandu and Dharan, independent candidates won the mayoral race, defeating the common candidates of major political parties. Similarly, developments were seen in the Tarai-Madhesh region where new forces gained ground. However, these new parties could not form a government due to insufficient parliamentary numbers.  Feeling threatened, the traditional parties began consolidating power to resist these emerging forces. In July 2024, two largest parties in parliament, Nepali Congress (NC) and CPN-UML, formed a coalition government, promising political stability and development. However, the alliance has already become unpopular due to its failure to deliver on those promises.

Second, there was a hope that major political changes would open up economic opportunities for the people. However, those expectations have largely gone unmet, and instead, the country’s economy has further stagnated. While moderate economic growth might have helped support the transition to a republic, the economy has failed to gain momentum. Many believe that the federal structure further strained the nation’s resources, adding pressure to an already fragile economy. Though economy is not a determinant factor in any democracy, it does play a vital role to cement democratic values. 

One of the most pressing issues is the failure to create sufficient job opportunities within the country. As a result, large numbers of Nepalis are going abroad to seek jobs and quality education. Domestic universities, weakened by political interference, have seen a sharp decline in quality. Key sectors of the economy—agriculture, manufacturing and tourism—are underperforming. 

Third, after the adoption of the new constitution in 2015, people hoped that the chronic political instability that has plagued the country since 1990 would finally come to an end. It was widely believed that with political freedom secured, future governments would focus on social and economic development. But instead of evolving in line with the constitution, political parties continued to engage in power struggles, internal factionalism and the politicization of state institutions.  The focus is still on changing governments rather than improving governance. They are putting blame on the current electoral system stating that it would not allow a single-party majority. In a diverse country like Nepal,  we cannot and should not remove the Proportional Representation (PR) system.  But people are not convinced, especially since parties have failed to maintain stable governments even when holding majorities. This persistent instability has bred anger, disillusionment and frustration among the people. As a result, more are now willing to consider undemocratic alternatives, reflected in the growing support for pro-monarchy forces. 

Way forward for parties

This growing support for royalist forces reflects the deepening unpopularity of the major political parties. Former King Gyanendra, who had remained largely silent for years, has recently become more vocal about his intent to return to power, adding to the pressure on these parties.  Over the past few months, Nepal has witnessed an increasingly stark divide between pro-monarchy and pro-republic sentiments, something not seen since the abolition of monarchy in 2008. In response, the current government led by the first and second largest parties in parliament have taken a suppressive approach to deal with pro-Monarchy protests. Rather than resorting to repression, mainstream political parties must focus on delivering real results and addressing public grievances. This is the only suitable way to restore public trust and safeguard the existing political system. Miserable political and economic performances of the successive governments after 2015 or even earlier is the time factor behind the current scenario. Instead of delving into conspiracy theories,  deliver on the promises of stability, inclusion and economic opportunity. 

The appointment of Biswo Nath Poudel as the Governor presents both significant opportunities and formidable challenges for Nepal’s economic governance. With a PhD in Economics from one of the world’s most prestigious academic institutions in the US and extensive experience in high-ranking government positions, Poudel brings substantial academic credentials and policy expertise to his new role as the chief of Nepal Rastra Bank, the central bank of the country. While his political affiliation with Nepali Congress President Sher Bahadur Deuba has drawn scrutiny, such connections are not inherently disqualifying in Nepal’s politico-economic context. More importantly, his esteemed economic qualifications position him to address the systemic failures that have long constrained Nepal’s monetary and fiscal policy frameworks.

At the core of these challenges lies Nepal’s dysfunctional fiscal architecture, characterized by rigid bureaucratic processes, rent-seeking behavior and a fundamental disconnect between policy objectives and implementation. The historical predominance of short-term political calculations over sound economic management has severely weakened the synergy between fiscal and monetary policy, undermining prospects for sustainable economic growth. Poudel’s most pressing task is to recalibrate this relationship by instilling greater discipline in fiscal operations while enhancing the NRB’s capacity to respond proactively to economic shocks and risks. This requires dismantling the rooted patronage networks that have distorted policy priorities and replacing them with evidence-based decision-making processes.

The liberalization of Nepal’s financial sector, while generating substantial business opportunities, has also fostered oligopolistic practices among business conglomerates. These entities have exploited regulatory gaps to establish cross-holdings across banking, insurance and investment ventures, engaging in market-distorting practices that marginalize smaller enterprises, which are important engines of growth. With single promoters controlling disproportionate shares of outstanding loans, some exceeding an unthinkable amount of hundred and thousand crores and exerting undue influence over regulatory appointments, the integrity of financial oversight has been severely compromised. Poudel must prioritize comprehensive risk assessments across all banking and financial institutions (BFIs), enhanced transparency in financial disclosures and stricter insulation of regulatory bodies from corporate interference.

NRB reports of April 2025 reveal that sectoral credit allocation patterns have profound structural imbalances that hinder economic diversification. The concentration of 20.75 percent of total advances in wholesale/retail trade contrasts sharply with the mere 12.43 percent allocated to agriculture, despite the latter’s quarter share of GDP. Meanwhile, term loans dominate the lending portfolio at 37.32 percent, reflecting excessive exposure to long-term, capital-intensive projects at the expense of more productive investments. The persistent shortfall in deprived sector lending remaining stagnant at 5.85 percent against regulatory targets and widespread misallocation of these funds to ineligible borrowers further exemplify systemic governance failures. This development occurs against a backdrop of systemic financial vulnerabilities, with non-performing loans (NPLs) escalating by 39.93 percent to Rs 180bn during the 2023-2024 reporting period.

A stark disparity emerges in asset quality between state-owned and private financial institutions, where government banks reported Rs 28.29bn in NPLs compared to Rs 151.72bn in the non-state banking sector. The aggregate commercial bank lending portfolio reached Rs 4,491.86bn, disproportionately dominated by private banks (Rs 3,825.81bn) relative to their state bank counterparts (Rs 666.05bn). The microfinance sector’s deviation from its original mission of rural financial inclusion into focused commercial operations, along with the politicization of cooperative institutions, has exacerbated financial exclusion. Meanwhile, the dangerous practice of banks financing secondary market speculation introduces unnecessary volatility into the financial system. Addressing these issues demands rigorous utilization audits, stress-testing of sectoral exposures and stricter due diligence on investments from opaque jurisdictions.

Poudel’s governorship represents a rare opportunity to reorient Nepal’s financial sector toward equitable capital allocation and sustainable development. Success will depend on his ability to transcend political constraints, challenge entrenched interests and implement technically sound reforms. By restoring the integrity of monetary policy and realigning credit flows with developmental priorities, his leadership could mark a turning point in Nepal’s economic trajectory, provided he demonstrates the necessary resolve to confront the systemic pathologies that have long hindered progress.

Breaking the Glass Ceiling is the inspiring and long-awaited story of the first ethnic Gorkha officer to rise to the highest echelons of command in the Indian Army. Commissioned into the Grenadiers—a regiment where Gorkhas traditionally do not serve—Lt General Shakti Gurung’s journey defies norms and challenges assumptions. From leading a frontline corps along the Line of Actual Control to serving as India’s defence attaché in Myanmar, and retiring as the prestigious Military Secretary, his remarkable career covers counterinsurgency and counterterrorism operations across J&K, the Northeast, and beyond. Packed with anecdotes, reflections, and sharp observations, this book is a window into the lesser-known realities of military life, strategic diplomacy, and regional complexities.

At its heart, breaking the Glass Ceiling is a personal and political meditation on identity, belonging, and leadership. It explores the Gorkha community’s deep yet often overlooked relationship with India—how they ‘came with the land’, their enduring loyalty, their unacknowledged sacrifices, and their unresolved quest for recognition. The memoir goes beyond the battlefield to examine systemic biases, regional tensions, and the quiet yet powerful resistance of breaking through institutional barriers with integrity and grit.

Lt General Shakti Gurung is a decorated officer and seasoned military leader who has held critical operational and strategic appointments in the Indian Army. A third-generation soldier, he brings a rare perspective shaped by decades of frontline service, administrative leadership, and international defence engagement. His tenure in the MS Branch and experience in India–Myanmar relations offer rich insight into both the inner workings of the armed forces and the geopolitical theatre of South Asia. Breaking the Glass Ceiling marks his debut as an author and a vital voice from a community too long spoken for but seldom heard from.

‘Simsara’ is a good book that offers a unique perspective on the  existing gender, caste and class differences in the society as well as regionalism, culture, values, ghosts, worship, and recognition of human behavior. Written by Nepali journalist and author Basanta Basnet, and based in his hometown of Taplejung district, the strongest aspect of the novel is its use of imagery—a massive pillar bearing the weight of a house, a lonely house that has lost its warmth, a flower blooming on a tree, an old bird wailing, a weak animal, or a human life bound by the chains of compulsion.

The book is poetic and metaphorical. The characters are entrenched in their circumstances and have a lot of psychological trauma and baggage. The story is narrated in first person but in some places you feel like you are hearing the author’s voice and not the character’s, which I think is mainly due to the writing style. In some instances, you get to see how silence can be more terrifying than speech. There is a lot of serious thought given to even the most trivial thing and that, along with the simple, evocative language, makes the novel highly enjoyable. 

A really promising character in the novel is Samvat who passed his SLC in the second division. He has failed to make his parents see that a joint family isn’t an ideal situation. With his parents in the same house, his relationship with his wife suffers and the couple fail to have the daughter they always wanted. His complex emotions give depth to the story. Babu’s character, on the other hand, isn’t able to prove himself as the main pillar of the household. He has no affection for his wife and teenage son. The newly married Kanchi also has no such attachment. Simsara is a swamp where both the father and the son are stuck. 

Simsara basically takes us through a world from the perspective of a teenager. There is a lot of adolescent psychology in it. But we must not mistake it for young adult fiction as the elements of familial relationship in the book make it a must read for people of all ages. The novel makes you ponder about many things like love, guilt, and survival. It’s not the author’s job to take sides and Basnet doesn’t indulge in it either. As humans, we are likely to take sides but authors aren’t allowed that luxury and in Simsara, Basnet shows the turmoils his characters go through and what makes them who they are without judgement. If you are familiar with Basnet’s previous works, you will know what to expect from his writing but Simsara feels refreshing in terms of the world it delves into. 

The book heavily discusses issues of our social, political, gender, religious, and caste differences. As a reader personally I was very affected by the child psychology and trauma in Simsara. We don’t realize how deep rooted these issues are and how badly it affects people. We tend to turn a blind eye to it and reading Simsara made me realize how harmful that can be. Basnet’s third published work Simsara is a fascinating and inspiring story about how our misguided cultural, political, and familial beliefs can have deep psychological impacts.

Fiction

Simsara

Basanta Basnet

Published: 2024

Publisher: FinePrint

Pages: 265, Paperback