Thursday, May 21, 2026 11:08 PM

Making or Breaking Nepal?

The government led by Balendra Shah appears determined to clean up the political and institutional disorder created by successive governments since 1990. Whether Shah is driven by genuine reform or just for political popularity remains uncertain, but several recent initiatives deserve recognition.

Critics have accused Prime Minister Shah of being autocratic and disregarding democratic norms. Despite these concerns, some government decisions appear constructive. One positive step is the effort to reduce politically motivated appointments in the judiciary. The recommendation of Dr. Manoj Kumar Sharma, considered less politically controversial, while sidelining judges reportedly linked to party power-sharing, is a promising start. Nepal’s judiciary must remain independent and protected from political interference. Judicial appointments should be based on merit, including passing the Legal Service Commission examination.

Government agencies and public enterprises should also be managed by professionals instead of party loyalists. Nepal Airlines Corporation, currently facing a severe crisis, should be restructured into an autonomous institution and gradually transformed into a public limited company, with the government retaining less than a 50 percent stake. The government should recruit competent foreign management through a fast-track process and procure necessary aircraft through government-to-government deals. In the long term, Nepal Airlines could operate under a public-private partnership model. Similar reforms should be extended to other state-owned enterprises, including the Nepal Electricity Authority.

Political interference in universities remains another serious challenge. Student unions, lecturer associations, and staff groups are often aligned with political parties, weakening academic independence. The government’s decision to restrict partisan politics in educational institutions is therefore commendable.

Likewise, Nepal has long allowed politically affiliated civil servants’ unions, an unusual practice compared to many countries. The suspension of such unions is another positive reform.

Government efforts to curb smuggling and restrict the unchecked inflow of goods from Indian border markets are also encouraging. These measures could help revive businesses on the Nepali side of the border. At the same time, the government should establish subsidized shops in border towns through local authorities.

The demolition of illegal structures on public land is necessary, but genuine squatters should be provided relief and proper alternatives.

However, road expansion in historic urban areas is difficult to justify. Instead of destroying old settlements, the government should prioritize bypass roads to preserve old settlements.

If pursued sincerely and consistently, these reforms could help build a stronger Nepal rather than weaken it. Ultimate test will be implementation and fairness.

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