Nepal Political Crisis

 

1. In 2025, Nepal witnessed major political upheaval after youth-led Gen Z protests erupted in September and toppled the coalition government led by Prime Minister K.P. Sharma Oli.

2. After consensus among Gen Z groups, the Army Chief, and the President, former Chief Justice Sushila Karki was appointed as Interim Prime Minister.

3. Sushila Karki’s interim mandate is to manage political instability and prepare a roadmap for general elections scheduled in March 2026.

4. Nepal’s 2025 political transition was constitutionally irregular and reflected frustration over corruption, leadership stagnation, unemployment, and rising out-migration.

5. Remittance inflows into Nepal stood at USD 10 billion in 2025, accounting for more than 20 percent of the country’s GDP.

6. Nepal’s GDP growth remained steady at 3.9 percent in 2025, supported by tourism revival and hydropower exports to neighbouring countries.

7. Inflation in Nepal moderated to 5.4 percent in 2025, though low private sector investment remained a structural economic challenge.

8. By October 2025, Nepal’s energy exports to India and Bangladesh generated more than NPR 15 billion.

9. The 2024 tripartite power-sharing agreement among Nepal, India, and Bangladesh became operational in 2025, using India’s grid as a transit corridor.

10. After K.P. Sharma Oli’s China visit in December 2024, Nepal revised its Belt and Road Initiative framework to include 10 potential projects under aid financing modalities.

11. India remained Nepal’s largest investor, biggest trade partner, and most important development partner in 2025.

12. India–Nepal bilateral trade reached USD 8.5 billion in 2025 despite occasional tensions over issues such as the Lipulekh trade route.

13. Nepal’s Parliament denounced the Lipulekh trade route issue in August 2025, showing continuing sensitivity around border-related disputes with India.

14. India’s digital outreach in Nepal expanded through successful Unified Payments Interface interoperability, strengthening technological and soft-power engagement.

15. Nepal’s general elections scheduled for 5 March 2026 are expected to test the recovery of democratic institutions and public trust after the 2025 political crisis.

Must Know terms  :

 

1.SushilaKarki

Sushila Karki, former Chief Justice of Nepal, was appointed Interim Prime Minister in 2025 after youth-led Gen Z protests toppled the K.P. Sharma Oli government. Her appointment followed consensus among Gen Z groups, the Army Chief, and the President. Her main mandate is to manage instability and prepare the roadmap for general elections scheduled for March 2026.

2.GenZProtests

GenZProtests refer to the youth-led mass mobilisation that erupted in Nepal in September 2025 and led to the fall of the coalition government headed by K.P. Sharma Oli. The protests reflected public anger over corruption, unemployment, political stagnation, and repeated power rotation among older leaders. They marked a generational shift in Nepal’s democratic politics and public accountability demands.

3.HydropowerExports

HydropowerExports became a major support for Nepal’s economy in 2025. By October 2025, Nepal’s energy exports to India and Bangladesh generated more than NPR 15 billion. The operationalisation of the Nepal-India-Bangladesh tripartite power-sharing agreement used India’s grid as a transit corridor, strengthening regional energy integration and creating new economic opportunities for Nepal through electricity trade.

4.BeltAndRoadInitiative

BeltAndRoadInitiative remained central to Nepal-China economic engagement in 2025. After K.P. Sharma Oli’s China visit in December 2024, Nepal revised its BRI framework to include ten potential projects under aid financing modalities. However, implementation remained slow due to administrative weaknesses and financial uncertainty. The framework also increased India’s strategic concerns about Chinese connectivity influence near its northern frontier.

5.LipulekhIssue

LipulekhIssue refers to the India-Nepal border-related dispute that again became politically sensitive in 2025. Nepal’s Parliament denounced the Lipulekh trade route issue in August 2025, creating tension in otherwise cordial India-Nepal relations. The issue shows how unresolved territorial sensitivities can affect bilateral trust, even when India remains Nepal’s largest investor, trade partner, and development partner.

6.UPIInteroperability

UPIInteroperability refers to the expansion of India’s Unified Payments Interface digital payment linkage with Nepal in 2025. It reflected India’s technological outreach and soft-power engagement in Nepal. The system supports easier cross-border digital payments, tourism, small transactions, and financial connectivity. It also strengthens India-Nepal economic integration by linking digital infrastructure with everyday people-to-people and commercial exchanges.

 

MCQ :

1. The Gen Z protests that destabilised Nepal’s government in 2025 erupted mainly in:

A. January
B. March
C. September
D. December

2. The coalition government toppled during the 2025 protests in Nepal was led by:

A. Pushpa Kamal Dahal
B. Sher Bahadur Deuba
C. Bidhya Devi Bhandari
D. K.P. Sharma Oli

3. Who was appointed Interim Prime Minister of Nepal in 2025?

A. Bidhya Devi Bhandari
B. Sushila Karki
C. Sujata Koirala
D. Onsari Gharti

4. Sushila Karki previously served as:

A. Finance Minister
B. Speaker of Parliament
C. Chief Justice of Nepal
D. Foreign Secretary

5. Nepal’s general elections after the 2025 political crisis are scheduled for:

A. 5 March 2026
B. 15 January 2026
C. 10 April 2026
D. 25 February 2026

6. Remittance inflows into Nepal in 2025 stood at approximately:

A. USD 8 billion
B. USD 9 billion
C. USD 10 billion
D. USD 11 billion

7. Nepal’s GDP growth rate in 2025 was:

A. 2.9 percent
B. 3.9 percent
C. 4.9 percent
D. 5.9 percent

8. Nepal’s inflation rate moderated to what level in 2025?

A. 4.4 percent
B. 5.4 percent
C. 6.4 percent
D. 7.4 percent

9. By October 2025, Nepal’s energy exports to India and Bangladesh generated:

A. NPR 10 billion
B. NPR 12 billion
C. NPR 15 billion
D. NPR 18 billion

10. The Nepal–India–Bangladesh tripartite power-sharing agreement became operational in:

A. 2023
B. 2024
C. 2025
D. 2026

11. Nepal revised its Belt and Road Initiative framework after whose China visit in December 2024?

A. Pushpa Kamal Dahal
B. Sushila Karki
C. Sher Bahadur Deuba
D. K.P. Sharma Oli

12. Under the revised BRI framework, Nepal identified how many potential projects?

A. 6
B. 8
C. 10
D. 12

13. India–Nepal bilateral trade reached what level in 2025?

A. USD 6.5 billion
B. USD 7.5 billion
C. USD 8.5 billion
D. USD 9.5 billion

14. Nepal’s Parliament denounced which issue in August 2025?

A. Kalapani Corridor
B. Lipulekh trade route
C. Mahakali Treaty
D. Pancheshwar Project

15. India’s digital outreach in Nepal expanded through:

A. RuPay military cards
B. Aadhaar integration
C. Digital Rupee corridors
D. UPI interoperability