There is a glimmer of hope that the long-pending transitional justice process in Nepal might finally be moving forward. The government has recently appointed heads and members to both the Truth and Reconciliation Commission and the Commission of Investigation of Enforced Disappeared Persons. However, skepticism remains widespread regarding whether the new leadership will truly be able to navigate and resolve the deeply complex and often contentious issues inherent in this process. Concerns have been raised about the potential inexperience of some nominees, the possibility of undue political influence and the absolute necessity of providing these commissions with adequate resources to carry out their critical work effectively. It’s important to remember that over 60,000 complaints are currently awaiting thorough investigation, which underscores the magnitude of the task ahead.
In an effort to highlight the urgent issue of climate change and its impacts on the fragile Himalayan region, the government is preparing to host the Sagarmatha Sambaad from May 16 to 18 in Kathmandu. This event aims to draw global attention to the specific vulnerabilities of mountain ecosystems. The government has extended invitations to 175 foreign representatives, including environment ministers from various countries. The presence of these international figures is intended to foster dialogue and collaboration on addressing climate challenges. However, the government has failed to ensure participation of heads of government and state, which could impact the summit’s overall influence.
The government’s continuing delay in appointing a new governor for the Nepal Rastra Bank is drawing increased criticism from various sectors of society. While both the ruling Nepali Congress and the CPN-UML assert that there are no political disputes hampering the process, the appointment remains stalled. This delay has rendered the government-formed recommendation committee effectively obsolete. In a further development, one of its members, Biso Poudel, has recently resigned from the committee, amidst speculation that he himself hopes to be appointed as the governor. Speaking at a public event on May 15, Prime Minister Oli said that he does not have a preferred candidate in mind, but emphasized his desire to see a highly capable individual take on the crucial leadership role.
On the political front, royalist forces have announced their intention to launch street protests beginning May 29. Their aim is to pressure the mainstream political parties into considering the restoration of the monarchy and the reinstatement of a Hindu state. Last week, former King Gyanendra Shah met with a number of pro-monarchy leaders, reportedly to encourage them to mobilize an impactful movement. It is worth noting that while royalist forces have historically been divided, there have been recent attempts to project a unified front. In response to these preparations, major political parties, particularly the UML and CPN (Maoist Center), have issued strong warnings against any attempts to bring back the monarchy. These parties have also directed their respective youth organizations to actively counter the planned protests by the royalist factions.
In parliamentary affairs, discussions are currently underway in the lead-up to the annual budget. Lawmakers from across the political spectrum are using this opportunity to voice their views and priorities regarding the upcoming budget. The government’s policy and program have already been endorsed by the Parliament, setting the broad parameters for the fiscal year ahead. Finance Minister Bishnu Poudel is now focusing on securing support from not only the ruling parties but also the opposition to finalize the budget.
As Nepal anticipates the arrival of the monsoon season in the coming months, predictions indicate that the country is likely to receive higher than average rainfall this year. A recent incident in Kavre district is a stark reminder of the potential dangers. A heavy rain event caused temporary blockage of the BP Highway and resulted in damages in the Panauti area of Kavre. This incident should serve as a wake-up call for government agencies, highlighting the urgent need for thorough preparations to cope with possible monsoon-induced disasters. Authorities are urged to prioritize critical infrastructure, particularly the main highways, in their mitigation efforts.
On a more positive note, the banking sector in Nepal is currently experiencing a steady rebound in credit growth. This positive trend is largely attributed to the rise in foreign trade and the increased demand for loans across key sectors of the economy. A recent report from the Nepal Rastra Bank indicates that private sector credit from banks and financial institutions grew by seven percent, reaching Rs 5,534.77bn, during the first nine months of the current fiscal year 2024-25. This growth reflects a credit disbursement of Rs 361.3bn between mid-July 2024 and mid-April 2025. To put this in perspective, credit growth was 5.1 percent during the same period of the previous fiscal year, with a total credit portfolio of Rs 5,167.17bn in mid-April of last year. On a year-on-year basis, credit disbursement grew by 8.3 percent in mid-April.
Lastly, China’s Deputy Speaker and Vice Chairman of the Standing Committee of the National People’s Congress, Ziao Jie, who arrived in Nepal on May 14 to participate in the Sagarmatha Sambaad, is taking the opportunity to engage with Nepali leaders and Parliament. He has already met with Prime Minister Oli and is scheduled to meet with Speaker Dev Raj Ghimire, National Assembly Chairman Narayan Dahal, and various cross-party leaders.
Parliamentary cooperation between Nepal and China formally began in 2022.
