On Monday, September 15, 2025, Nepal’s newly appointed interim Prime Minister, Sushila Karki, unveiled her first cabinet of ministers in a solemn ceremony held against the backdrop of a fire-damaged presidential office in Kathmandu. The swearing-in, administered by President Ram Chandra Paudel and broadcast live on national television, marked a pivotal moment in the Himalayan nation’s efforts to stabilize its political landscape following deadly anti-corruption protests that toppled the previous government. The protests, which erupted on September 8, were sparked by a controversial social media ban and fueled by widespread economic discontent, resulting in unprecedented unrest that left at least 72 dead and 191 injured. With elections scheduled for March 2026, the interim government faces the daunting task of addressing protester demands for a corruption-free future while navigating the country’s deep-seated economic and governance challenges.
A New Leadership for a Fractured Nation
Sushila Karki, a 73-year-old former chief justice renowned for her integrity and judicial independence, was appointed interim prime minister to lead Nepal through this turbulent period. Her selection is seen as a strategic move to restore public trust in governance, given her reputation as a staunch advocate for justice and accountability during her tenure as the country’s first female chief justice from 2016 to 2018. Karki’s appointment comes at a time when Nepal is grappling with the aftermath of its most severe unrest since the end of a decade-long Maoist insurgency and the abolition of the monarchy in 2008. The protests, which saw parliament and key government buildings set ablaze, underscored the public’s frustration with systemic corruption, economic stagnation, and unemployment, particularly among the youth.
In her first act as prime minister, Karki introduced a lean cabinet of three key ministers, each tasked with addressing critical areas of governance. The ceremony, held in the shadow of the damaged presidential office—a stark reminder of the recent violence—was a symbolic gesture of resilience and determination to rebuild. President Paudel, administering the oath of office, called for unity and urged the new government to prioritize the demands of the protesters while preparing the nation for free and fair elections in March.
The New Ministers: A Team for Reform
The composition of Karki’s cabinet reflects a deliberate focus on expertise and reform. The three ministers sworn in on Monday bring a wealth of experience in law, energy, and finance—sectors critical to addressing the root causes of the recent unrest.
Om Prakash Aryal, a prominent advocate known for his work on corruption, governance, and human rights, was appointed as the Home Minister, with additional responsibilities for law, justice, and parliamentary affairs. Aryal’s legal background and his track record of taking on powerful interests make him a fitting choice for the home ministry, which oversees internal security and law enforcement. His appointment signals the interim government’s commitment to tackling corruption head-on, a key demand of the protesters. Aryal’s role will be pivotal in restoring public confidence in the rule of law, particularly after the violent clashes that left dozens dead and hundreds injured. His dual portfolio in law and parliamentary affairs also positions him to oversee legislative reforms and ensure a smooth transition to the upcoming elections.
Kulman Ghising, the former director of the Nepal Electricity Authority (NEA), was entrusted with the portfolios of energy, infrastructure, transport, and urban development. Ghising is a national figure widely credited with ending Nepal’s chronic load-shedding crisis during his tenure at the NEA from 2016 to 2020. His innovative leadership transformed the country’s energy sector, reducing power outages that had long plagued businesses and households. Ghising’s appointment to these critical infrastructure portfolios reflects the government’s recognition of the need for robust economic development to address the unemployment and infrastructure deficits that fueled the protests. His experience in managing large-scale projects and delivering tangible results will be crucial as Nepal seeks to rebuild its damaged infrastructure and stimulate economic growth.
Rameshwor Khanal, a respected economist and former finance secretary, was appointed as the Finance Minister, tasked with addressing the economic woes that were a central driver of the uprising. Khanal’s expertise in fiscal policy and public administration will be tested as he navigates Nepal’s struggling economy, marked by high unemployment, inflation, and a growing trade deficit. The protests, which were partly triggered by economic discontent, highlighted the urgent need for policies that create jobs and foster sustainable growth. Khanal’s role will involve balancing immediate relief measures with long-term economic reforms, a challenging task in a country heavily reliant on remittances and tourism.
The Protests: A Turning Point for Nepal
The protests that led to the ousting of the previous government began on September 8, 2025, sparked by a controversial government decision to ban social media platforms. The ban, ostensibly introduced to curb misinformation, was widely perceived as an attempt to suppress dissent amid growing public frustration over economic hardship and corruption. The move backfired, igniting a wave of demonstrations that quickly escalated into violence. Protesters, predominantly young and urban, took to the streets in Kathmandu and other cities, demanding accountability, economic opportunities, and an end to systemic corruption.
The unrest, which lasted two days, was the most severe since the end of Nepal’s civil war in 2006 and the subsequent abolition of the monarchy in 2008. Demonstrators set fire to parliament and several government buildings, including the presidential office, in a powerful expression of anger against the political establishment. According to official figures, at least 72 people were killed during the clashes, with 191 others injured and still recovering in hospitals across the country. The violence shocked the nation, prompting the resignation of the previous government and the appointment of Karki’s interim administration.
The protests were rooted in a confluence of factors: widespread corruption, economic stagnation, and a growing sense of disenfranchisement among Nepal’s youth. Despite its rich cultural heritage and natural beauty, Nepal remains one of South Asia’s poorest nations, with a per capita GDP of approximately $1,400. Unemployment, particularly among young people, has been a persistent challenge, driving many to seek opportunities abroad. Remittances from Nepali migrant workers account for nearly 30% of the country’s GDP, but this reliance on external income has done little to address domestic job creation or infrastructure development. The social media ban, seen as an attack on freedom of expression, became the final straw for a population already frustrated by years of mismanagement and unfulfilled promises.
The Road to Elections: Challenges and Expectations
Prime Minister Karki’s interim government has been tasked with a delicate balancing act: addressing the immediate demands of the protesters while laying the groundwork for free and fair elections in March 2026. The protests exposed deep fissures in Nepal’s political system, and the interim administration must work to restore public trust in governance. Key among the protesters’ demands is a comprehensive anti-corruption framework, including stronger accountability mechanisms and transparency in public institutions. Karki, with her judicial background, is well-positioned to champion these reforms, but the scale of the challenge cannot be understated.
Corruption has long been a pervasive issue in Nepal, undermining public services and discouraging foreign investment. Transparency International’s Corruption Perceptions Index consistently ranks Nepal among the more corrupt nations globally, with a score of 35 out of 100 in 2024. The interim government will need to implement tangible measures—such as strengthening anti-corruption agencies, prosecuting high-profile cases, and improving public procurement processes—to demonstrate its commitment to change. Om Prakash Aryal’s role as Home Minister will be critical in this regard, as his ministry oversees the enforcement of anti-corruption laws and the protection of whistleblowers.
Economic recovery is another pressing priority. The protests highlighted the frustration of Nepal’s youth, many of whom face limited job prospects despite the country’s growing education levels. Rameshwor Khanal’s appointment as Finance Minister places him at the forefront of efforts to stabilize the economy and create opportunities. Potential measures could include targeted investments in education and vocational training, incentives for small and medium enterprises, and reforms to attract foreign direct investment. Nepal’s tourism sector, a key driver of the economy, also requires revitalization, particularly after the disruptions caused by the protests and the lingering effects of the COVID-19 pandemic.
Infrastructure development, under Kulman Ghising’s purview, will be equally critical. The destruction of government buildings during the protests has added to Nepal’s infrastructure challenges, which include inadequate roads, unreliable electricity in rural areas, and limited urban planning. Ghising’s track record at the Nepal Electricity Authority offers hope that he can deliver results, but the scale of the task—combined with limited financial resources—will test his abilities. Investments in renewable energy, such as hydropower, could not only address domestic needs but also position Nepal as a regional energy exporter, boosting economic growth.
Regional and International Implications
Nepal’s political crisis has drawn attention from its neighbors, India and China, both of which wield significant influence in the region. India, Nepal’s largest trading partner, has a vested interest in the country’s stability, given the open border and deep economic ties between the two nations. China, meanwhile, has invested heavily in Nepal’s infrastructure through its Belt and Road Initiative, including projects in hydropower and transportation. The interim government will need to navigate these relationships carefully, balancing economic cooperation with national sovereignty.
The international community has also expressed concern over the violence and called for a peaceful resolution. The United Nations and other organizations have urged Nepal to protect human rights and ensure that the upcoming elections are conducted transparently. The interim government’s ability to restore order and implement reforms will be closely watched, as Nepal’s stability has implications for regional security and economic cooperation in South Asia.
A Nation at a Crossroads
As Nepal embarks on this new chapter under Sushila Karki’s leadership, the challenges are immense but not insurmountable. The interim government’s success will depend on its ability to address the root causes of the protests—corruption, unemployment, and lack of opportunity—while fostering an environment of trust and accountability. The appointments of Aryal, Ghising, and Khanal signal a commitment to expertise and reform, but translating this into tangible results will require political will, public support, and international cooperation.
The fire-damaged presidential office, where the swearing-in ceremony took place, serves as a poignant reminder of the stakes involved. For many Nepalis, the protests were not just a reaction to a social media ban but a broader cry for change in a country long plagued by instability and inequality. As the March 2026 elections approach, the interim government has a narrow window to deliver on its promises and set Nepal on a path toward a more just and prosperous future.
The road ahead is fraught with challenges, but it also presents an opportunity for transformation. If Karki and her team can harness the momentum of the protests and channel it into meaningful reforms, Nepal could emerge stronger and more united. For now, the nation watches with cautious optimism, hoping that this interim government can deliver the change that so many have demanded—at great cost.
