Nepal Political Briefing (July 31)

Greetings from Kathmandu,

Welcome to The ApEx Daily, your daily briefing on Nepal's politics, governance, and public affairs. Designed for an international audience, this newsletter explains the developments shaping one of South Asia's youngest federal democracies.

The unrest in Madhes continues. Although the degree of violence has slightly decreased, protests remain underway. To prevent potential clashes between the two communities, authorities have imposed curfews in major cities across Madhes, and the Nepal Army is on the streets. At the same time, calls for peace and social harmony are increasing, with harmony rallies taking place across the country.

Political parties, civil society, the media, and religious leaders are calling for peace, harmony, goodwill, and unity. At least three people have been confirmed killed and dozens remain injured. Police have arrested several individuals suspected of inciting violence.

Prime Minister Balendra Shah has expedited consultations with political parties and lawmakers. He held a meeting with leaders from Madhes-based parties. For the first time, PM Shah expressed a commitment to federalism and stated that there are no plans to restore the monarchy or a Hindu state.

The government and the families of the victims have reached an agreement. Under the agreement, the government will declare the deceased individuals as martyrs. In addition, each bereaved family will receive Rs 1 million in compensation, and one qualified member from each family will be provided with employment. This agreement is expected to help restore peace.

During the meeting with leaders of Madhes-based parties, the Prime Minister made it clear that the government is preparing a multi-pronged strategy to handle the situation.

Over the past few years, communal violence has been increasing in southern Nepal. According to a study conducted by the Center for Social Change (CSC), a Kathmandu-based think tank, there has been a sharp escalation in religious violence in the country. Prakash Bhattarai, a conflict and governance specialist, says: “Historically, Nepal had relatively low levels of organized religious violence compared to its South Asian neighbors, and interfaith relations were often described as a source of national pride. Against this backdrop, a cluster of 37 recorded clashes in under four years—with a sharp jump in 2026—represents a major shift.”

According to the yearly count, there was one such incident in 2022, eight in 2024, three in 2025, and 13 in just the first five months of 2026, he noted. The main drivers appear to be growing religious intolerance in the Madhes region, alongside misinformation and disinformation.

The Nepali Communist Party, led by Chairman Pushpa Kamal Dahal, has demanded a high-level judicial commission to investigate the recent violence in Terai-Madhes. In a separate incident, four bodies were found on Friday as a search operation was underway to locate climbers who went missing on Broad Peak.

The Alpine Club of Pakistan stated that the 10-member team included six Nepalese climbers, a Pakistani, an Omani, an American, and a climber from China. The climbers from Nepal were identified as renowned mountaineer Nirmal Purja, Pur Bahadur Gurung, Kili Pemba Sherpa, Nima Sherpa, Nawang Tindu Sherpa, and Gyalu Sherpa.

The government and the Microfinance Victims' Group have reached a five-point agreement. The agreement was signed on Friday night between the negotiation team formed by the Ministry of Finance and the Struggle Committee Against Microfinance and Financial Exploitation. Following this agreement, microfinance victims have withdrawn the protests and hunger strikes that had been taking place across the country.

Kamal Dev Bhattarai, Editor