RSP and Balen faces multi-layered economic and geopolitical challenges

KATHMANDU: The Rastriya Swatantra Party (RSP) is set to form a single-party government under Balendra Shah (Balen) in the coming days. While Balen is poised to take office with an unprecedented popular mandate in Nepal’s political history, economists and analysts warn of severe multi-layered challenges. Economically, Nepal is struggling with a growth rate of around 3%, high youth unemployment, and public debt that has climbed to 44% of GDP. Geopolitically, the new government must navigate the competing interests of India, China (BRI), and the United States (MCC). The transition marks a departure from traditional coalition politics but brings immediate pressure to deliver on structural reforms and maintain regional neutrality.