The BGA Nepal Team led by Senior Advisor Sujeev Shakya, wrote an update to clients on the recent vote of confidence in Nepal and the future of the new ruling coalition. 

Context

  • Nepali Prime Minister Pushpa Kamal Dahal, leader of the Communist Party of Nepal (Maoist Centre), secured a vote of confidence from the newly formed House of Representatives on January 10, receiving 268 of the 270 votes cast. On December 25, 2022, Dahal was appointed as the new prime minister of Nepal with the support of 169 members of Parliament (MP) from across seven parties and three independent MPs.

Significance

  • The ruling coalition has negotiated multiple power-sharing agreements and approved the appointment of provincial chiefs in all seven provinces. The coalition decided to divide the seven provinces’ chief minister positions among the various parties.
  • A new power struggle may break out within and among the parties over the appointment of the new president. The current coalition is seen by many as more of a power sharing agreement being used by the Communist Party of Nepal – Unified Marxist-Leninist (CPN – UML) to secure the position of president in the upcoming presidential elections.

Implications

  • Despite near unanimous support for Dahal in Parliament in the vote of confidence, businesses can expect some political uncertainty given the fragile nature of the current ruling coalition.
  • The next three months will be critical in determining the strength of the coalition and whether it is able to break the political gridlock and work on key legislation that has been stalled since July 2019, especially with the presidential election expected to be conducted by mid-February 2023.

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

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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