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What's next for Nepal? KP Sharma Oli resigns after violent Gen Z protests, parliament torched; question marks over next government

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Nepal is witnessing its most turbulent political crisis in years after Prime Minister KP Sharma Oli resigned on Tuesday, a day after violent student-led protests left 21 people dead and forced the government to revoke a controversial social media ban.

The unrest has now turned into a wider movement against corruption and political elites, shaking the foundations of the Himalayan nation’s fragile democracy.

Oli bows out under pressure

Oli, 72, announced his resignation on Tuesday afternoon, saying he was “deeply saddened” by the loss of lives but blamed “vested interest groups” for infiltrating peaceful demonstrations. His statement offered compensation to victims’ families and free treatment for the injured, but it failed to stem public anger.

Home minister Ramesh Lekhak and agriculture minister Ramnath Adhikari resigned earlier, taking “moral responsibility” for Monday’s bloodshed.

Nepal's parliament building set on fire

By Tuesday, protesters had stormed and set fire to the parliament building, Oli’s residence in Balkot, and homes of several senior leaders including President Ram Chandra Poudel, former PM Sher Bahadur Deuba, Maoist leader Pushpa Kamal Dahal, and foreign minister Arzu Rana Deuba. Even party headquarters of the ruling CPN-UML and Nepali Congress were attacked.

The numbers game in parliament

Oli’s exit leaves Nepal in political flux. The 275-member House requires 138 seats for a majority:

  • Nepali Congress: 89
  • CPN-UML: 78
  • Maoist Centre: 32
  • Rastriya Swatantra Party (RSP): 21
  • Others (JSP, smaller allies): 10+
The opposition Nepali Congress and Maoist Centre could stake a claim, but internal splits, including the Shekhar Koirala faction threatening to break ranks, complicate matters. The RSP, buoyed by youth support, could emerge as kingmakers.

The rise of Balendra Shah (Balen)

All eyes are now on Balendra Shah, Kathmandu’s independent mayor and rapper-turned-politician, who has become the face of the Gen Z movement. To many, he represents a break from traditional dynastic politics. His popularity has energised the RSP and independent candidates, raising speculation he could be pushed forward as a prime ministerial candidate.

“Balen symbolises change,” said political analyst Dipak Gautam. “But running a city is very different from leading a fractured nation in crisis.”

What next?

Caretaker setup: Nepal may see a caretaker government until parliament decides on a new coalition.

Risk of instability: With curfews in Kathmandu, Lalitpur and Bhaktapur, and the army deployed around parliament, instability threatens to deepen.

Protests spreading: Despite curfews, demonstrations continued Tuesday in Baneshwor, Kalanki and Lalitpur, with students chanting “Punish the murderers in government.”

Regional concern

India’s embassy in Kathmandu has issued emergency contact numbers for Indian nationals in Nepal, reflecting growing regional concern. Both India and China, which vie for influence in Nepal, are watching closely as the crisis unfolds.

How protests spiralled out of control

The immediate trigger was the government’s decision last week to block Facebook, Instagram, YouTube, WhatsApp and X, demanding the platforms register and submit to local oversight. Authorities argued it was needed to curb “misuse” of social media, but activists saw it as an attack on free expression.

On Monday, tens of thousands of mostly young demonstrators, many in school uniforms, flooded Kathmandu’s streets, chanting “Stop corruption, not social media!” The rallies soon turned violent after police opened fire, killing 19 and injuring over 300. Witnesses reported protesters shot in the head and chest, overwhelming hospitals in the capital.

Why are youths angry?

While the social media ban was the spark, underlying anger has been building for years. Many young Nepalis feel betrayed by politicians they see as corrupt, dynastic, and disconnected. The viral hashtag #NepoKids, targeting children of politicians flaunting luxury lifestyles online, has become a rallying cry.

“This government killed our friends. We will not stop until they are punished,” said student protester Narayan Acharya. Another demonstrator, Durganah Dahal, said, “As long as these corrupt leaders are in power, the people will continue to suffer.”

(With PTI, Reuters inputs)
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