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Nepal’s democratic transition was a historic achievement, born out of years of struggle against autocracy and exclusion. The promise was clear: a more inclusive, transparent and accountable political system that would work for all Nepalis. However, in recent years, that promise appears increasingly under threat—not from overt dictatorship or conflict, but from a more insidious danger: crony capitalism, underpinned by corruption and rent-seeking behavior.

Instead of fulfilling the vision of a just and equitable society, Nepal’s political and economic systems are becoming instruments of private gain. Political power is being used not to deliver public service, but to protect vested interests, distribute favors and reward loyalty. As a result, the foundations of democracy are weakening, and inequality, injustice, and disillusionment are growing.

Graft in daily life

One of the clearest signs of Nepal’s corruption problem is the widespread practice of bribery in daily government work. People often complain that they have to pay extra money to get basic services—like getting a driver’s license, registering land or receiving government help. This kind of small-scale corruption is not just occasional; it has become a regular part of the system. Many lower-level officials take bribes, often with the knowledge or silent approval of their bosses. Because of this, public services no longer work fairly, and people lose trust in the system. Along with this, Nepal is now facing several big corruption scandals, such as irregularities in the construction of Bhairahawa and Pokhara airports, cheating in government purchases, and growing cases of human trafficking. These examples show how deep and serious corruption has become in the country.

Patronage over meritocracy

In a healthy democracy, public appointments and opportunities should be based on merit. In Nepal, however, political patronage has become the norm. Government contracts, licenses and even civil service positions are often awarded to those with political connections, not competence. This has created a dual economy—one that rewards allegiance over ability, and another that marginalizes the capable yet unconnected. Such practices discourage innovation, weaken institutions, and dishearten the youth.

Policy manipulation

Nepal’s business elite, particularly those with political ties, have increasingly influenced laws and regulations to serve their own interests. This includes securing tax exemptions, inflating budgets and establishing monopolies that block competition. Regulatory frameworks are often tailored to fit the needs of a few, undermining the spirit of fairness and market integrity. In effect, public policy is being captured and privatized.

Public procurement sans accountability

Large-scale corruption is particularly rampant in public procurement. Infrastructure, health and education projects are plagued by inflated costs, poor quality, and delayed completion. Contracts are frequently awarded without open bidding, leading to the misuse of public funds. Instead of serving the people, these projects often serve the contractors and politicians who collude behind the scenes. The result is a chronic under-delivery of essential services.

The capture of financial institutions

Even Nepal’s financial institutions are not immune. Several cooperatives and commercial banks are believed to be controlled by political actors or their close allies. These institutions have been used to launder money, issue unsecured loans to cronies and bypass financial oversight. Such practices not only promote corruption but also put ordinary depositors and the overall financial system at risk.

Consequences for the nation

The cumulative effect of corruption and rent-seeking is deeply damaging. Economic growth is stifled because genuine entrepreneurs are crowded out by politically connected firms. Inequality worsens as elites accumulate wealth while basic services for the public remain poor. Most dangerously, public trust in democratic institutions is eroding. When citizens lose faith in the rule of law and the fairness of the system, democracy itself is at risk.

Furthermore, the politicization of oversight institutions—such as the Commission for the Investigation of Abuse of Authority (CIAA), judiciary and police—has rendered many of them ineffective. These bodies are meant to serve as guardians of accountability, but they often appear reluctant or powerless to act against those in power.

The way forward

Addressing these challenges requires more than superficial reforms. It demands structural change and political will. Strengthening anti-corruption laws, ensuring transparency in public procurement and depoliticizing state institutions are essential. Political party financing must be regulated, and the independence of watchdog agencies must be guaranteed. Whistleblowers and investigative journalists must be protected, and a culture of ethical leadership must be cultivated.

Equally important is the need for civic engagement. Citizens must demand accountability, participate actively in governance and resist the normalization of corruption. Democracy does not end at the ballot box—it must be defended and deepened every day.

Conclusion

Nepal’s democracy was built with the hope of justice, equality and opportunity. Allowing that hope to be squandered by corruption and cronyism would be a profound betrayal. Crony capitalism is not just an economic issue—it is also a political and moral one. Unless addressed with urgency and courage, it threatens to undo the democratic gains made over decades. Nepal cannot afford to let democracy become a tool for private profit. It must remain a force for public good.

The decision to raise senior citizen allowances from 68 to 70 years will save the government approximately Rs 10bn annually, finance ministry officials say. The government, through the budget for fiscal year 2022/23 presented by Janardan Sharma of CPN (Maoist Center) had lowered the age limit for senior citizen allowances to 68 from 70. As the growing elderly population was putting additional financial burden, the government raised the age limit to 70 from the coming fiscal year.

It was one of the recommendations made by the High-level Economic Reforms Advisory Committee led by former Finance Secretary Rameshore Khanal.

Currently, all senior citizens aged 68 and above receive a monthly allowance of Rs 4,000. The age threshold, however, will remain unchanged for targeted groups such as elderly Dalits, residents of remote areas and others qualifying under special categories. According to finance ministry spokesperson Shyam Prasad Bhandari, raising the age limit is expected to save the state Rs 10bn annually. “This measure is aimed at easing fiscal pressure and making the system more sustainable and efficient,” he told ApEx. 

The government has also barred provincial and local bodies from duplicating social security programs, to avoid overlapping benefits and excessive spending. A total of Rs 109bn, roughly 5.55 percent of the national budget of Rs 1,964bn, has been allocated for all social security programs in the upcoming fiscal year. This represents a decline from previous years when social security expenses comprised over eight percent of the budget.

Khanal said limiting allowances to citizens above 70 years will help redirect funds toward capital formation. “It is not a permanent saving, but it provides temporary relief,” he said. The government also plans to integrate all social security payments with the national ID system to prevent duplication.

Economist Ramesh Paudel said the decision aligns with Nepal’s rising life expectancy, currently at 71.3 years. However, he criticized the move as symbolic rather than transformative. “Increasing the age limit might free up some funds, but it won’t significantly boost economic growth,” he said. Paudel called for a shift toward a single-window social security system focused on free education and healthcare, rather than multiple allowance categories. “Such investments have more long-term economic impact than scattered cash distributions,” he added.

According to the National Statistics Office, Nepal is on track to become an aging society by (2054/55), as the birth rate declines and the elderly population, which has already tripled since 1991/92, continues to rise.

Finance Ministry Joint-secretary Krishna Prasad Sharma called for a review of the pension system and a redesigned model for social support. “Expanding social security without systemic reforms could make it unsustainable,” he added. The number of beneficiaries is expected to increase from 3.75m this year to 3.78m next year, even with the higher age requirement, according to finance ministry officials.

For more than 20 years, the only Living Planet found thus far in a vast universe has been celebrating the World Environment Day on June 5 to draw the attention of humanity toward pressing environmental concerns. This time, the world is celebrating the big day under the auspices of the United Nations Environment Program with a very relevant theme: #BeatPlasticPollution. The Republic of Korea (RoK) is hosting the global celebrations geared toward ending plastic pollution, not an easy undertaking (to say the least), given a pervasive use of plastics in our lives.

The World Environment Day 2025 states in its homepage: For decades, plastic pollution has seeped into every corner of the world, leaching into the water we drink, into the food we eat, and our bodies. While plastic pollution is a major concern, it is also one of the most fixable of today’s environmental challenges, with some obvious solutions at hand.

Together with the UNEP, this year’s celebrations will spotlight the growing scientific evidence on the impacts of plastic pollution and drive momentum to refuse, reduce, reuse, recycle and rethink (4Rs) plastics use, apart from reinforcing the global commitment made in 2022 to end plastic pollution through a global plastic pollution treaty.

Plastic pollution is a key factor behind three major crises facing life on Earth: the crisis of climate change, the crisis of nature, land and biodiversity loss, and the crisis of pollution and waste. An estimated 11m tonnes of plastic waste leak into aquatic ecosystems each year, while microplastics accumulate in the soil from sewage and landfills, due to the use of plastics in agricultural products. The annual social and environmental cost of plastic pollution ranges from $300-$600bn.

While Nepal has a very nominal pollution footprint compared to global economic powerhouses, plastic pollution is becoming increasingly visible in our daily lives. As our water bodies, sewage systems, forests and even our streets show, plastic pollution is emerging as an all-pervasive problem, contaminating the air we breathe, the water we drink and the food we partake, with severe consequences not only for us but for the entire living planet.   

As a famous quote goes: If you are not part of the solution, then you are part of the problem. While celebrating the big day with the rest of humanity, let us not forget that the onus is also on us to end plastic pollution. Together, we can beat plastic pollution—and all other forms of pollution—and we must, for there’s no other living planet in this vast universe. 

With dwindling public support and growing divisions within the movement, the pro-monarchy protests appear to have weakened for now. On May 29, a royalist faction led by Panchayat-era veteran Navaraj Subedi announced an indefinite strike, but it failed to sustain even a week.

While the first day saw a sizable turnout, participation gradually declined, forcing the Subedi-led group to shift tactics—moving protests from Kathmandu to municipalities. From the outset, royalist forces projected unity, but internal rifts have now surfaced. Tensions escalated between the Rastriya Prajatantra Party (RPP), a key royalist faction with 14 parliamentary seats, and Subedi’s panel after the latter unilaterally called for a banda (nationwide strike) without consulting the RPP. The strike was later withdrawn, but the RPP faced criticism for resorting to a tactic most political parties have abandoned.

Since the movement began in March, many RPP leaders were displeased when former King Gyanendra Shah secretly formed the Subedi-led panel to push for his reinstatement. Initially, RPP Chairperson Rajendra Lingden and RPP-Nepal Chairperson Kamal Thapa refused to join, but after pressure from royalist factions, they reluctantly participated and even directed party cadres to support the protests. Many RPP leaders saw this as an attempt to undermine their party’s leadership, further deepening internal divisions.

The first major protest this year took place on March 28 in Kathmandu, preceded by a crowd of around 10,000 welcoming Gyanendra at the airport upon his return from Pokhara. The March 28 rally, led by controversial businessman Durga Prasai, exposed further cracks in the RPP. Senior leaders Rabindra Mishra and Dhawal Shumsher Rana defied the party’s official stance and joined the protest, and now they face legal cases for allegedly inciting violence.

Gyanendra later managed to bring Lingden, Thapa and 45 smaller Hindu nationalist groups under Subedi’s committee. Over the past months, he met numerous pro-monarchy figures to rally support but resisted building the movement under the RPP’s leadership—despite its parliamentary presence. On May 27, two days before the strike, Gyanendra hosted a meeting with RPP leaders, yet his approach reportedly alienated many. Sources say he dismissed the RPP’s influence, claiming people rallied for him, not the party. His unrealistic optimism about reclaiming the throne and his dismissive attitude toward political leaders further strained relations.

The ruling CPN-UML and Maoist Center have countered the royalist movement through rhetoric and occasional force, while the Nepali Congress (NC) initially dismissed it. However, NC President Sher Bahadur Deuba recently acknowledged the need to take the royalists seriously as they adopt a more systematic approach.

Meanwhile, unrelated protests erupted this week as transport syndicates struck against Gandaki Province’s proposed ride-sharing laws—a sign of the government’s inability to reform Nepal’s dysfunctional public transport sector, long plagued by political patronage.

Two dozen civil society organizations have warned that Nepal’s transitional justice process faces a legitimacy crisis due to inadequate consultations. Recent appointments to key commissions have drawn skepticism, with critics and the international community questioning their credibility.

Former President Bidya Devi Bhandari returned from a 10-day China visit, where she met senior Communist Party officials. Her trip followed increased political activity, including provincial tours and overt ambitions to lead the CPN-UML—ignoring criticism that ex-presidents should avoid partisan politics. Her delegation included UML figures distancing themselves from Prime Minister KP Oli, signaling internal rifts.

Opposition leader Pushpa Kamal Dahal, once vocal about toppling the government, has turned focus to party-building—though his aides still engage with NC leaders on potential government changes. Meanwhile, NC leaders Shekhar Koirala and Gagan Thapa, both vying for the party presidency, privately agree on preventing Deuba from returning as PM and holding timely conventions—yet lack the numbers to challenge him.

As monsoon arrives 10 days early, fears of floods and landslides loom. Last year’s poor disaster response eroded public trust, and with damaged highways still unrepaired, concerns persist. Home Minister Ramesh Lekhak claims preparedness, but given the state’s limited capacity, skepticism remains. Another weak response could further undermine government legitimacy.