Kathmandu: Nepal stands at a critical crossroads as its caretaker Prime Minister, Sushila Karki, navigates a delicate political landscape following the ousting of former Prime Minister K.P. Sharma Oli. Appointed for her reputation for integrity and commitment to anti-corruption, Karki faces the dual challenge of responding to a vigorous youth-led movement demanding accountability while contending with resistance from entrenched political factions. Her leadership is now being tested in what many describe as the most turbulent period in Nepal’s recent history.
The unrest gripping the nation is largely driven by younger generations frustrated with corruption, unemployment, and perceived governance failures. The protests have escalated into the deadliest in decades, claiming the lives of 74 individuals and leaving over 2,100 injured. Demonstrators have called for strict action against corrupt leaders, the removal of politically connected bureaucrats, and justice for the victims of the violent clashes. Sudan Gurung, a leading youth activist, emphasized, “We mainly expect her [Karki] to fight corruption. She is our mother and we believe she will protect us.” Despite her appointment being seen as a step toward reform, the youth remain impatient for tangible progress.
Karki, Nepal’s first female chief justice, has pledged to address the root causes of unrest through concrete measures. Her interim government plans to establish an anti-corruption committee and investigate the recent violence. In addition, she is responsible for overseeing the upcoming parliamentary elections scheduled for March 5, 2026. However, these reform efforts face stiff resistance from powerful political leaders, including former Prime Minister Oli, who continues to wield significant influence within his party. Political analysts warn that failure to implement meaningful reforms or delays in holding elections could provoke renewed unrest and destabilize the nation further.
The political uncertainty has also cast a shadow over Nepal’s economic outlook. Fitch Ratings and other financial observers have highlighted that the unrest threatens economic stability, dampening both business and consumer confidence. Disruptions caused by protests and political gridlock may affect investment, credit metrics, and overall fiscal health, complicating efforts to maintain growth and financial stability.
As Nepal moves forward, the nation’s path will largely depend on Karki’s ability to balance the aspirations of a restless youth with the entrenched political interests that continue to shape the country’s governance. The coming months will be crucial in determining whether Nepal can achieve meaningful reform, stabilize its political environment, and restore public confidence in its democratic institutions.