Nepal New Political Alliance Forms
Analysis based on 6 articles · First reported Dec 29, 2025 · Last updated Dec 29, 2025
The formation of this new political alliance in Nepal, led by Balen Shah and Nepal — Rastriya Swatantra Party (RSP), introduces significant uncertainty into the country's political future, potentially affecting investor confidence and policy stability. Traditional parties like Nepal — Communist Party of Nepal (Unified Marxist–Leninist) and Nepal — Nepali Congress face a strong challenge, which could lead to shifts in economic policies depending on the election outcome.
Two popular leaders in Nepal, Balen Shah and Rabi Lamichhane, have formed a political alliance ahead of the March 5 parliamentary elections. Balen Shah, a rapper-turned-Kathmandu mayor, joined the Nepal — Rastriya Swatantra Party (RSP) led by Rabi Lamichhane. Under their agreement, Balen Shah will become the prime minister if Nepal — Rastriya Swatantra Party (RSP) wins the elections, with Rabi Lamichhane remaining the party chief. This alliance aims to challenge the long-standing dominance of traditional parties such as the Nepal — Communist Party of Nepal (Unified Marxist–Leninist) and Nepal — Nepali Congress, which have governed Nepal for over three decades. Both leaders have pledged to address the demands of the 'Gen Z' youth-led protests against corruption that occurred in September, which resulted in 77 deaths and the resignation of then-Prime Minister K. P. Sharma Oli. The election commission reports nearly 19 million eligible voters, with approximately one million new, mostly young, voters added after the protests. Balen Shah was a prominent figure in these protests and also assisted in forming an interim government under former Chief Justice Sushila Karki to oversee the vote.
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