Nepal’s Situation Three Months After the September 8 Youth Protest: Where are we now?

Nepal Three Months After the September 8 Youth Protest (BottleButea)

The protest done by Nepali youths on September 8 got international attention for its youth voices and the use of platforms such as Discord. In Nepal, it resulted in an interim government with Nepal’s first female prime minister, with the sole aim of conducting an election. With many commercial properties destroyed, police morale low (since much of the police infrastructure was targeted), and weapons being looted, people were unsure how it would all pan out. Many speculated about foreign interference, wider protests by the old guards resulting in the state spiraling into violence, and even reinstatement of the parliament.

Now, more than three months after the date, things have toned down. Much of the country remains excited about the coming elections, and preparation for the elections by parties seems to be ramping up. Alternative forces have actively started consolidating; regional parties and monarchical parties are also following. Interestingly, the old guards are also in talks about forming alliances.

The initial fear of violent backlash by established parties has, at least so far, remained unfounded. While there have been isolated shows of force in some areas, no large-scale protests have materialized. A few Gen-Z–led groups have also taken to the streets expressing dissatisfaction with the interim government, but they remain a clear minority and have not gained broad public support.The investor confidence remains a bit low however the government can be seen trying to build the confidence through better policies and ensuring of a safer climate. 

Investor confidence remains subdued, though the government has made visible efforts to rebuild trust through policy signaling and assurances of stability. With less than three months remaining before the election, concerns persist regarding election security and fairness. Some groups have even issued threats of violent protests if their demands are not addressed.

Overall, however, the average Nepali would likely say that the interim government has performed better than expected and has not been disappointing in its core mandate of election preparation.

Political Consolidation and Emerging Forces Ahead of Nepal’s 2026 Election

As the March 2026 elections draw closer, political consolidation has accelerated across the spectrum. A major development has been the merger of the Bibekshil Sajha Party and the Rastriya Swatantra Party (RaSwaPa), followed by a high-profile coalition involving Balendra Shah (Balen), the rapper-turned-mayor of Kathmandu, and Kulman Ghising, the bureaucrat widely credited with ending Nepal’s load-shedding crisis.

Under the RaSwaPa banner, this alignment has presented a unified alternative to traditional parties. In this arrangement, Balendra Shah has been projected as the prime ministerial candidate, Rabi Lamichhane retains his role as party chief, and Kulman Ghising assumes the position of senior vice-chair. This development has energized the online community and generated genuine optimism among many voters.

Other alternative figures such as Sagar Dhakal and Sumana Shrestha (both influential among youth) are also being pushed forward in online forums to come together. Meanwhile, regional parties and pro-monarchy groups are consolidating their bases as well. Harka Sampang a mayor from Dharan is a stand out, who has declared that he would not form coalition with anyone and would run for the election through his own party. He has his fair share of supporters but has lost a lot of youth votes because of two reasons: not wishing to form a coalition with any one else, and his posts that are pessimistic and derogatory of others. 

Interestingly, the traditional “big three” (Nepali Congress, CPN-UML, and CPN-Maoist) have also begun discussing alliances. This is ironic, given that just four to five months ago they publicly ruled out such cooperation. Their shift suggests growing anxiety over electoral prospects. Youth wings within these parties have also become more vocal, raising expectations of increased youth representation in party leadership.

Recognizable Faces in Nepal’s Interim Cabinet and Public Perception

The current cabinet has enjoyed a relatively high level of public approval, largely due to the inclusion of credible and well-known figures. Education Minister Mahabir Pun is widely respected for his contributions to rural internet connectivity and research promotion in the country. Kulman Ghising, now overseeing key infrastructure and energy-related ministries, continues to receive praise for his administrative effectiveness.

Finance Minister and Minister of Federal Affairs and General Administration Rameshwor Khanal, along with Nepal Rastra Bank Governor Bishwo Nath Poudel ( the governor was originally appointed by a previous government ) have also been commended for their performance. While not all ministers have attracted praise, there have been notably few public complaints.

That said, Ghising’s active political engagement while serving in an interim government has raised concerns among traditional parties, who argue that this could tilt the electoral playing field. Additionally, the prime minister’s initial promise to limit the cabinet to 11 members has already been breached, with the cabinet now expanded to 15 members.

Actions Taken by Nepal’s Interim Government Since the September Protest

The interim government’s actions appear firmly geared toward ensuring election readiness. Early fears of prolonged instability have largely disappeared, with most aspects of daily life returning to normal. However, the burnt remains of public and private buildings still serve as stark reminders of the protests, even as reconstruction efforts gain pace.

Public participation in rebuilding police infrastructure has been particularly symbolic, signaling a gradual restoration of trust between citizens and law enforcement.

A major concern remains the possibility of election delays, especially in light of political instability in Bangladesh. The cabinet has repeatedly assured the public and stakeholders that elections will proceed as scheduled. Efforts to apprehend escaped convicts and recover looted weapons are ongoing, though setbacks remain. Some escapees have committed serious crimes, including murder, which has resulted in public anxiety. Nevertheless, the government maintains that security mechanisms are being strengthened and that coordination between security agencies has improved.

 

Fragmented Gen-Z Groups and Continued Street Protests in Nepal

Because the September 8–9 protests were not led by a single party or identifiable leadership, numerous individuals and groups have since attempted to claim ownership of the movement. Some of these groups have increasingly become a source of concern. A few have demanded influence in business, hydropower projects, or state appointments, framing these demands as “rewards” for their role in the protests. The private sectors have cited such threats, and are claiming the business environment is increasingly becoming hostile towards them. 

Several such groups have organized demonstrations (with very little attendance) calling for the resignation of the prime minister on the grounds that the interim government has failed to meet protest demands. However, these actions have largely been met with public irritation rather than sympathy. 

Private Sector Response and Investor Confidence After the Nepal Protests

The interim government has made clear efforts to prioritize the private sector, advancing relatively liberal and market-friendly policies. Yet high liquidity in the banking system indicates that investor confidence has not fully recovered. It is important to note that this liquidity issue predates the September protests and reflects deeper structural weaknesses in Nepal’s economy. However, the lack of improvement in the situation and frequent calls for improvement on safety by the private sector in any conference shows that the business community might not be confident in Nepal. 

Many private businesses were unjustly targeted during the unrest, and business leaders have warned that continued instability would deter not only foreign direct investment but also domestic capital. The government has responded with outreach efforts, policy assurances, and rhetoric emphasizing stability, though tangible results remain limited so far.