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CWA # 2033, 23 March 2026
Global Politics Early Bird
Nepal after elections:

  Mahesh Bhatta

Nepal’s most recent elections have marked a significant turning point in the country’s political landscape. The early general elections held in March 2026 were triggered by the dissolution of parliament following widespread GEN-Z protests against corruption and governance failures in 2025. 

The elections witnessed a dramatic shift away from traditional parties such as the Nepali Congress and CPN-UML. The relatively new Rastriya Swatantra Party (RSP) has emerged as a dominant force, winning a sweeping majority in parliament; it has secured 182 out of 275 seats in the House of Representatives—125 through direct (FPTP) elections and 57 through proportional representation, giving it a near two-thirds majority. Traditional parties performed poorly; the Nepali Congress (NC) secured a distant second with 38 seats, while the Communist Party of Nepal (Unified Marxist–Leninist) (CPN-UML) got 25 seats, reflecting a sharp decline in their influence.  

Five major challenges ahead
This overwhelming mandate places the RSP in a strong position to form a stable government on its own without depending on any coalition, a rare development in Nepal’s politics. The results reflect growing public frustration, especially among young voters with long-standing political instability and elite-driven politics, as well as a strong demand for transparency, economic reform and better governance. The election represents both a rejection of the old political order and the beginning of a potentially transformative, yet uncertain, new phase in Nepal’s democratic trajectory.

The RSP is entering government with a historic mandate but that also means expectations are extraordinarily high. Based on recent developments, the new government faces the following key challenges.

1. Managing a high public expectation
Managing high public expectations will be critical. RSP’s victory is rooted in widespread frustration over corruption, unemployment, poor governance and demand for systemic change and service delivery particularly among youth. Failure to show early results could quickly erode trust, especially among Gen Z voters who drove the movement. 

2. Governance capacity and experience gaps 
The party must address gaps in governance capacity and experience. As a relatively new political party with many first-time lawmakers, RSP lacks administrative experience, which may complicate policy implementation, bureaucratic and state management in a complex federal system.

3. Internal party cohesion within the RSP
Internal cohesion and party institutionalisation remain a major concern. Despite electoral success, internal disputes, leadership criticism, resignations of some leaders in the past and allegations of weak internal democracy and transparency might pose a challenge in maintaining unity and building a stable party structure in the coming days.

4. Economic Delivery and Systemic Reform Challenges
Fourth, delivering economic results and reforming deeply rooted systems. Nepal faces structural economic challenges, including high youth unemployment, large-scale labour migration abroad, a weak industrial base, and heavy dependence on remittances. RSP will be under pressure to generate domestic employment opportunities, improve the investment climate and gradually reduce dependence on remittances. Failure to deliver on these fronts, especially if public expectations are not carefully managed it could heighten political risks and lead to growing public mistrust. At the same time, the party’s mandate is grounded in widespread public frustration with rooted political elites, corruption networks and bureaucratic inefficiency. However, these structures are deeply embedded within Nepal’s governance system, and efforts to reform them are likely to encounter resistance from within the state system itself.

5. Foreign policy balancing 
Fifth, managing foreign relations, particularly balancing ties between India and China as well as with the West, will be a key challenge for the RSP. Nepal has traditionally maintained a non-aligned position between its two powerful neighbours, but any new government will face close inspection from external actors. RSP will need to carefully navigate issues such as trade, infrastructure partnerships and broader geopolitical pressures while maintaining strategic balance. Given the party’s relative inexperience in foreign policy, missteps in managing these relationships could invite external pressure or contribute to instability, making this a particularly sensitive area in the early phase of governance.

The real challenge for the RSP ahead is not merely winning the election or forming the government but rather translating a protest-driven mandate into stable and effective governance without losing credibility.

Also read
Mahesh Bhatta, "Nepal Elections 2026: The Rise of the New and the Fall of the Old," CWA # 2010, 09 March 2026

Sreemaya Nair, "Nepal Elections 2026: Rise of a new leadership and Reset in political landscape," The World This Week #347, 08 March 2026

Mahesh Bhatta, "Nepal Election 2026, Day One: Peaceful polling, with over 60 per cent turnout," CWA # 2006, 6 March 2026

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