Why Nepal is on fire

Nepal is a country with unmatched natural beauty, glorious Sagarmatha on top, immense cultural richness, and incredible human potential. Yet, despite its gifts, Nepal is burning — politically, economically, and socially. The flame isn’t sudden or accidental; it’s been fuelled for years by chronic political instability, rampant corruption, economic stagnation, and the disillusionment of its youth.

Time is up for Prime Minister Nepal’s Prime Minister Khadga Prasad Sharma Oli as he has already tendered his resignation after three of his ministers earlier quit following deadly protests over alleged government corruption. Taking some cue from Bangladesh, while he resigned and asked for peace, after 19 protesters died, there is no respite for Oli. Nepal is bound to change, and why, now?

Political instability: Nepal, the world champion?

If there were a global competition for political instability, Nepal would be a reigning champion. In just the past 15 years, the country has seen 14 different prime ministers. The fact that Nepal has almost a new prime minister every year makes a mockery of and a systemic failure in a nation of 30 million inhabitants.

This isn’t just a trivia fact — it’s a glaring symptom of a broken system, where governance is dominated by power struggles, factionalism, and ego rather than public service or vision. The root of this instability lies in Nepal’s troubled political transition from a monarchy to a federal democratic republic. The end of the civil war in 2006 and the abolition of the monarchy in 2008 promised a new beginning. Instead, it unleashed a chaotic era of coalition governments, constitutional gridlocks, and opportunistic alliances.

The clusters of political parties with their similar names: Nepal Communist Party (Maoist Centre), UML, Communist Party of Nepal (Unified Socialist) are some more like a botched chemical formula for the Nepali youth. Nepali Congress is already in deep malaise with an old hanger. No leader stays long enough to implement reform; most are too busy protecting their position or toppling someone else’s.

Economic paralysis and youth unemployment

While politicians squabble in Kathmandu, the economy limps forward without direction. Nepal is a country with abundant water resources, tourism potential, and a young labour force, yet it remains one of the poorest in South Asia.

Nepal’s GDP growth has been erratic, heavily dependent on remittances, tourism, and agriculture — all vulnerable sectors. While post-COVID growth recovered briefly, structural issues remain: Mass youth unemployment, low industrial productivity, poor infrastructure, and Political paralysis discouraging investment
Here comes the debt story unfolding in Nepal. As of 2025, Nepal’s total public debt stands at over approx. $18 billion USD, which is roughly 42–45% of its GDP, making Nepal one of the poorest countries in South Asia.

While in definition, such a number is still within the acceptable threshold set by the IMF (usually 70% for developing nations), but the pace at which this debt is rising is cause for concern as the repayment capacity is weakening fast, revenue collection is falling behind debt servicing and development expenditure.

Additionally, a key factor is Nepal’s Import-Driven Economy. A huge trade deficit pushes the government to borrow foreign currency to maintain reserves.

Nepal’s entry in China’s Belt and Road Initiative (BRI) is also turning clumsy. While China’s share of total debt is about 4% which is not so significant, the push for greater financing under BRI has lured the political establishment, especially the present government.
That is further put in fact as in 2025, debt repayments owed to China by developing countries are expected to amount to $35 billion. Critically, out of that, $22billion is set to be paid by 75 of the world’s poorest countries, putting health and education spending at risk in such countries.

The numbers tell a grim story. Youth unemployment and underemployment are alarmingly high — nearly 40% of the population is under 30, and many are without work or proper income. The result? A mass exodus. Every day, thousands of young Nepalis leave the country to work in the Gulf, Malaysia, or India — not out of ambition, but desperation. Nepal’s economy now heavily relies on remittances, which account for nearly a quarter of its GDP.

While the remittances still contribute to over 23% of GDP, propping up households, but not create jobs at home. Youth are migrating en masse to the Gulf and Malaysia due to a lack of local opportunities.
That’s not development — that’s survival.

Domestically, the job market is thin, private sector growth is stagnant, and foreign investment remains hesitant due to the unstable political climate and unreliable infrastructure. The few young people who stay often resort to informal labour or entrepreneurial ventures — many of which are crushed by bureaucratic red tape and corruption.

The rise of social media — and its dangers

In this vacuum of leadership and opportunity, social media has emerged as a new frontier — both of hope and of danger. Platforms like TikTok, Facebook, and YouTube are not just entertainment; they have become outlets for anger, protest, identity, and even income.
For many, social media is a tool of empowerment.

Young people use it to highlight injustice, speak truth to power, and build communities. However, the state views this freedom with suspicion. In recent years, there has been an increasing crackdown on content creators and activists under vague pretexts like “social harmony” or “public decency.” This signals an alarming trend — an authoritarian instinct to control the only space where the public still has a voice.

Where is the fire burning brightest?

Nepal is a predominantly rural country. Approximately 79% of the country lives in rural areas. As a result, there is a significant urban and rural divide in the country when it comes to healthcare. In the villages, where schools lack teachers and hospitals lack doctors. In the cities, where educated youths wait tables or drive taxis with degrees in their pockets. In the hearts of the young, who dream of leaving Nepal not for ambition but for survival. In the parliament, where the game of musical chairs continues, ignoring the burning issues outside.

What must change?

Nepal doesn’t lack potential — it lacks leadership. Until politicians stop treating the government like a personal chessboard, true development will remain out of reach. Here’s what Nepal desperately needs:
Political Stability Through Accountability: The country needs a governance system that values stability over party infighting. Politicians must be held accountable — through elections, media, and an engaged civil society.

Economic Reforms and Youth Investment: Nepal must create real opportunities at home. That means supporting entrepreneurship, incentivizing industries, and prioritizing vocational education.
Protecting Digital Freedom: Instead of cracking down on dissent, the state should engage with its digital citizens. Social media is the new town square — and silencing it only fuels more unrest.

End Corruption, Empower Institutions: Nepalis have seen enough of hollow promises. They want results, and that requires strong, independent institutions — not party puppets.
Nepal is on fire — not because it lacks resources or spirit, but because it has failed time and again by its leaders.

The youth are losing faith. The economy is leaking talent. The democracy is being tested. But amidst the smoke, there’s still hope — in the voices rising online, in the voters demanding change, and in the resilience of a people who have weathered much worse.
Whether that fire burns everything down or lights the path forward — that remains Nepal’s choice to make.

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