Nepal’s capital city of Kathmandu has become the epicenter of escalating political unrest as widespread protests challenge the stability of the government and test the resilience of the country’s democratic institutions. The current crisis represents the latest chapter in Nepal’s complex political journey since transitioning from monarchy to federal democratic republic in 2008.
The recent wave of demonstrations began in early December 2025, triggered by multiple converging factors including economic hardship, perceived government corruption, and unresolved constitutional implementation issues. Thousands of protesters have gathered in major thoroughfares around Singh Durbar, the seat of government, creating massive disruptions to daily life and business operations throughout the Kathmandu Valley.
Political analysts point to several underlying causes for the current instability. “Nepal has been experiencing a perfect storm of political, economic, and social challenges,” explains Dr. Meena Sharma, professor of South Asian Studies at Tribhuvan University. “The transition from monarchy to republic was never fully consolidated, and successive governments have struggled to address fundamental governance issues while managing public expectations.”
The economic dimension of the crisis cannot be overstated. Nepal continues to grapple with high inflation, particularly affecting food and fuel prices, while youth unemployment remains persistently high. Remittances, which constitute approximately 25% of Nepal’s GDP, have shown volatility due to global economic conditions, further straining household economies across the country.
Constitutional implementation disputes have also fueled the current tensions. The federal structure established by the 2015 constitution has faced ongoing challenges in implementation, with various groups expressing dissatisfaction with power-sharing arrangements between the central government and seven provincial administrations. The demarcation of provincial boundaries and distribution of resources continue to be contentious issues that have periodically sparked protests across different regions.
The current government, led by Prime Minister Pushpa Kamal Dahal ‘Prachanda,’ has faced increasing pressure from both opposition parties and coalition partners. The fragile multiparty coalition that brought the government to power has shown signs of strain as different factions pursue competing agendas. This political fragmentation has hampered the government’s ability to respond effectively to the escalating crisis.
Security forces have been deployed throughout Kathmandu to maintain order, but reports of clashes between protesters and police have raised concerns about potential human rights violations. International observers, including representatives from the United Nations, have called for restraint from all sides and emphasized the importance of peaceful dialogue.
The business community in Kathmandu has expressed growing alarm about the economic impact of the sustained protests. The Federation of Nepalese Chambers of Commerce and Industry reported that the tourism sector, a vital source of foreign currency, has been particularly hard hit with numerous cancellations during what should be the peak season. Small businesses throughout the capital have reported significant losses due to transportation disruptions and decreased consumer activity.
Historical context is essential for understanding Nepal’s current political challenges. The country has experienced remarkable political transformation since the end of the decade-long civil war in 2006, followed by the abolition of the monarchy in 2008. However, this transition has been marked by political instability, with no government completing a full five-year term since the establishment of the republic. This pattern of short-lived administrations has hindered long-term policy implementation and economic planning.
Regional dynamics also play a crucial role in Nepal’s political landscape. The country’s geographic position between India and China creates complex diplomatic considerations, with both neighbors maintaining significant economic and political influence. Balancing relationships with these two regional powers while preserving national sovereignty has been a persistent challenge for successive Nepalese governments.
Looking forward, political observers suggest that resolving the current crisis will require addressing both immediate concerns and underlying structural issues. “Short-term solutions might calm the streets temporarily, but lasting stability will require addressing fundamental governance reforms and economic inequalities,” notes foreign policy analyst Rajiv Joshi. “The political class needs to demonstrate genuine commitment to institutional strengthening rather than partisan advantage.”
The coming weeks will be critical for Nepal’s political future. The ability of political leaders to engage in meaningful dialogue, address public grievances, and work toward consensus on key issues will determine whether the current protests lead to constructive reform or further destabilization. The international community continues to watch developments closely, recognizing that stability in Nepal has implications for regional security and economic integration in South Asia.
As night falls on Kathmandu, the contrast between the ancient city’s spiritual tranquility and its contemporary political turbulence remains stark. The resolution of this latest crisis will test not only the current government but the resilience of Nepal’s democratic experiment itself.
