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Nepal: Protests erupt as Balen Shah government faces multiple crises

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Kathmandu: Just weeks after coming to power following a landslide victory, the government of Nepal, led by Prime Minister Balen (Balendra) Shah, is facing intense public backlash. The unrest, which has spread from the border plains of Madhesh to the administrative hub of Kathmandu, stems from a combination of controversial trade policies, a crackdown on student organizations, and serious corruption allegations against high-ranking officials.

The catalyst for the protests is a new directive requiring mandatory customs duty on all items imported from India valued at over NRs 100 (approx. ₹62). Previously, residents in border areas enjoyed informal exemptions for small household purchases. Protesters argue that this “unannounced blockade” ignores the historical “Roti-Beti” (trade and familial) relationship with India and places an unbearable economic burden on the poor. In Birgunj and other border towns, the Armed Police Force (APF) has intensified inspections, leading to long queues and heightened tension as local residents and political groups like the Jana Adhikar Party demand the rule’s withdrawal.

Simultaneously, tension has escalated between the state and student unions. Activists from the Nepal Student Union (NSU) and the “Gen Z Movement” have staged daring protests, even entering the high-security Singha Durbar complex in Kathmandu during cabinet meetings. Thousands of students are rallying against the government’s perceived policy of suppression and the rising cost of living. The movement gained momentum following the government’s aggressive stance against traditional political structures, which has unified various youth wings against the administration despite Prime Minister Balen Shah’s own origins as a youth-led political phenomenon.

Adding to the government’s instability are serious allegations against Home Minister Sudan Gurung. He is accused of maintaining a clandestine business partnership with trader Deepak Bhatt, who is currently under scrutiny for financial irregularities. While Gurung recently declared substantial personal assets—including 89 tolas of gold and various land holdings—to maintain transparency, protesters are calling for his immediate resignation and arrest. The opposition is capitalizing on these early struggles, highlighting that an administration built on the promise of radical transparency is already embroiled in the same patterns of controversy it sought to replace.

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