Prime Minister KP Sharma Oli’s recent visit to China for the Shanghai Cooperation Organization (SCO) Summit and the Victory Day Parade has drawn significant attention in political and strategic circles.
Following Oli’s meeting with President Xi Jinping, China issued a news release claiming that Nepal supported the Global Security Initiative (GSI), a claim quickly dismissed by Nepali officials. Foreign Secretary Amrit Rai clarified to the media that no such agreement had been reached.
Criticism also emerged over Oli’s participation in the Victory Day Parade, with some arguing it could upset Japan, Nepal’s long-standing development partner. However, Oli’s decision to raise the Lipulekh issue with Chinese President Xi has been well received at home. UML leaders are already seeking to capitalize on this move, framing it as a matter of “nationalism” ahead of upcoming elections.
At the SCO, Nepal expressed its willingness to become a full member, providing Oli with the opportunity to engage directly with leaders from China, Russia, India, and beyond. During the summit, Oli stated that Nepal supports the Global Governance Initiative (GGI), a new proposal by Xi. On broader security strategies such as the GSI, Nepal has reiterated its consistent position: it will not join any military or strategic alliance.
Attention is now turning to Prime Minister Oli’s upcoming visit to India, likely at the end of this month, though the trip may be delayed. As in Beijing, Oli is expected to raise the Lipulekh issue with Indian Prime Minister Narendra Modi. The timing is significant as the India-China agreement on Lipulekh pass has created a favorable environment for Oli to raise the matter with both neighbors. His handling of this issue in New Delhi will be closely watched at home.
To prevent possible misunderstandings with coalition partner Nepali Congress (NC), Oli included senior NC leader Purna Bahadur Khadka in his China delegation. As a result, NC leaders have remained largely silent on controversies surrounding the GSI and other issues. Over recent months, NC’s criticism of China has softened, reflecting a gradual rapprochement after a period of strained ties between 2015 and 2020.
Meanwhile, CPN (Maoist Center) Chair Pushpa Kamal Dahal reiterated that the border dispute with India should be resolved through diplomatic talks.
Within Oli’s CPN-UML, preparations are underway for the party’s statute convention starting Friday. Speculation is growing over whether the party will reconsider former President Bidya Devi Bhandari’s membership. While Oli and the leadership appear unwilling to reinstate her, senior leaders like Surendra Pandey and Yubaraj Gyawali have expressed support for her return.
In Parliament, the Rastriya Prajatantra Party (RPP) and Rastriya Swatantra Party (RSP) have continued their boycott for over 100 days, demanding a high-level panel to probe into visit visa corruption. Although the Maoist Center initially joined their protest, it later compromised with ruling parties, leaving RSP and RPP with limited leverage due to their smaller numbers.
Within the CPN (Maoist Center), senior leader Janardhan Sharma is under pressure after questioning party chairperson Dahal’s leadership. He has also been targeted by a deepfake video alleging he is working at Oli’s behest, a claim he blames on Dahal’s inner circle. Deepfakes are increasingly troubling Nepali politics: RSP Vice-chair Swarnim Wagle has also filed a case at the cyber bureau, saying he too has been victimized.
Party disputes remain unresolved within the RPP, where tensions between president Rajendra Lingden and senior leader Dhawal Shumsher Rana have delayed the party’s central committee meeting. The conflict intensified after Lingden expelled several leaders aligned with Rana.
In legislative developments, the National Assembly has finally endorsed the long-debated Federal Civil Service Bill after years of disagreements between government and opposition. Separately, Nepal’s Immigration Department has announced a new digital tracking system for foreign tourists, beginning Sept 17. Visitors staying in star hotels will be required to register their personal details via a mobile app.
Tourism numbers continue to rebound. In August 2025, Nepal welcomed 88,680 tourists—a 22 percent increase compared to last year. India topped the list with 35,505 visitors, followed by China (7,533), the US (6,068), Sri Lanka (5,956), and Bangladesh (4,262). From January to August 2025, total arrivals reached 736,562.
Another significant government move this week came in the digital sphere. The Cabinet has decided to ban social media platforms that have not registered in Nepal. According to the Ministry of Communications and Information Technology, platforms like Facebook face restrictions for failing to comply with registration requirements.
The decision follows a Supreme Court writ of mandamus directing the regulation of such platforms. Minister Prithvi Subba Gurung’s secretariat confirmed that the ministry will now enforce the ban. Experts warn the decision could disrupt content creators and businesses, while also undermining Nepal’s broader digital aspirations.
In the financial sector, Nepal’s 10 largest commercial banks have agreed to undergo international audits, with findings to be made public—a long-standing demand of the International Monetary Fund to address bad loan practices. The Nepal Rastra Bank (NRB) will ensure an in-depth inspection of these banks.
The NRB has also introduced stricter rules on the use of CSR funds, requiring banks and financial institutions to channel them exclusively toward poverty alleviation and priority sectors.
In law enforcement, police have busted a human trafficking ring that used to smuggle Nepalis to India to sell their kidneys. The ringleader, Shyam Krishna Bhandari, and his associate have been arrested. Victims were reportedly lured from districts including Sindhupalchok, Kavre, Sindhuli, Nuwakot, and Dhading.
Finally, Nepal has achieved a new milestone in energy exports. According to Energy Minister Deepak Khadka, the country is now exporting over 1,130 MW daily to India and Bangladesh. If this trend continues, annual earnings could exceed Rs 86.38bn.
