The BGA Nepal team,led by Managing Director Sujeev Shakya wrote an update to clients on Nepal’s upcoming general election.

Context

  • Nepal will head to the polls on March 5, the country’s first general election since the September 2025 Gen Z protests forced the collapse of former Prime Minister Khadga Prasad (K.P.) Sharma Oli’s government. The elections will determine the shape of the new Parliament and select 275 members of the House of Representatives. Another 165 members will be elected through first past the post voting and the remaining 110 seats will be selected through closed list proportional representation. There are more than 3,000 candidates running across 165 constituencies.
  • The upcoming elections will be a competition mainly between Oli of the Communist Party of Nepal – Unified Marxist–Leninist (CPN–UML) and former Kathmandu mayor Balendra Shah of the Rastriya Swatantra Party (RSP). Oli has once again consolidated his position by winning the internal party convention and projecting himself as the party’s prime ministerial candidate. There are multiple new parties competing in the elections, but the most prominent ones are the CPN-UML and RSP, which was the fourth largest party in the last Parliament. The RSP has forged alliances with many young Nepalis and projected Balendra Shah as its candidate. Nepali Congress leader Gagan Kumar Thapa has also announced that he is a candidate for prime minister. The CPN (Maoist Centre), led by Pushpa Kamal Dahal (“Prachanda”), has named him as its candidate for prime minister. Jhapa 5 is one of the five parliamentary constituencies of Jhapa District where the former Prime Minister Oli faces an unprecedented challenge from former mayor Balendra Shah.

Significance

  • As Nepal prepares for general elections, the political landscape is still shaped by last year’s youth‑led unrest. The Gen Z demonstrations erupted in late 2025 in response to severe national corruption levels, high unemployment and the lack of government accountability. The uprisings in September resulted in three main outcomes.  September 12 marked the dissolution of Parliament. This led to the fall of the Nepali Congress-CPN-UML coalition government, and politician Sushila Karki became the interim prime minister as the top candidate of many young activists. The new interim government pledged to hold elections March 5, investigate various corruption cases and bring to justice perpetrators of the killing of the youth protestors.
  • Nepal’s location is strategic, located between the major economies of India and China. Both neighbors have economic, strategic and symbolic interests in Nepal. However, this election is more about addressing Nepal’s domestic situation and its economic weaknesses. Nepal’s geopolitical position provides the country an opportunity, not a vulnerability. Nepal is interdependent on India and China for much of its trade. The election will have implications for energy trade with India, tourism flows from neighboring countries and on export competitiveness for Nepali food supplies.

Implications

  • For domestic and foreign businesses, this election will determine whether Nepal continues its trajectory to align politics with economic transformation and the demands of the youth-led demonstrators. The outcome will determine regulatory predictability, continuity of economic reforms and will determine investor confidence in sectors such as tourism and infrastructure. Nepal also faces a brain drain problem with many students and migrant workers flying overseas for better education and opportunities. These migration patterns have implications for businesses in Nepal because it can cause labor shortages, rising wage pressures and greater dependence on migrant remittances.
  • The March 6 elections will be a test to determine whether the new generation ‘s demands will be reflected in the governance of the nation. The youth protesters are seeking better governance and more employment opportunities. The generation of young protesters hope the elections will elect leaders who will shape the country’s ability to address structural economic challenges, negotiate beneficial regional partnerships and reshape the political system to address their aspirations.

We will continue to keep you updated on developments in Nepal as they occur. If you have any comments or questions, please contact BGA Nepal Managing Director Sujeev Shakya at sshakya@bowergroupasia.com.

Best regards,

BGA Nepal Team

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Senior Advisor

Sujeev dabbles across many worlds. Working for two decades with Nepal’s largest business group, Tara Management/Soaltee Group, he left as group president to begin a multi-dimensional career engaging in consulting, advisory, writing, speaking, coaching and inspiring people. His journey as a multipotentialite is taught as a case study at the Babson College. He Chairs Nepal Economic Forum, a thought center he founded that is listed in the top hundred Go To Think Tank list. He helps people dream and achieve their dreams making their dreams also part of his own dream. A connector he helps different worlds connect and help ... Read More