Unrest and Uncertainty: The Deepening Crisis in Nepal’s Democracy
“The last general elections in Nepal were held in November 2022, the second since the promulgation of the constitution in 2015. At the time, the Communist Party of Nepal- Maoist Centre (CPN-MC) formed a coalition government with the Communist Party of Nepal- Unified-Marxist Leninist (CPN-UML), even though the Nepal Congress (NC) emerged as the largest party. Since then, there have been four rounds of in-coalition manoeuvring with a CPN-UML and NC-led coalition in power since July 2024, alongside rumours about a possible government change…”
“According to the World Bank, Nepal’s economy is expected to grow from 4.5 percent in FY 2024–25 to 5.2 percent in FY 2025-26, bringing down the growth percentage from its earlier projection due to the country’s weak financial systems. In February 2025, during the Financial Action Task Force’s (FATF) plenary meeting, Nepal was placed under the grey list for the second time (initially from 2008 to 2014). This means that the country would be put under more scrutiny for its failure to curb money laundering and other financial crimes effectively, and for failing to regulate cooperatives and real estate. For a country whose economy is already under strain, grey-listing will create additional obstacles to attracting investments…”