US Congress study: PM Shah's 'self-interested' politics questioned, new chapter in Nepal's power equation

A study report recently published by the Congressional Research Service (CRS) under the US Parliament (Congress) has expressed suspicion that the relationship between Prime Minister Balendra Shah and the National Independence Party (NSPA) is "self-centered". The report has analyzed the process of the former mayor of Kathmandu, Shah, winning the mayoral election as an independent candidate and later contesting the House of Representatives election from the RSVP as a 'self-motivated strategic' move.

The report points out that the coming days will be challenging for Shah, who was sworn in as Prime Minister on March 27. According to CRS, Shah's popularity rests on his 'anti-establishment' image, but his clear plans and style of governance remain unclear. His mixed performance as mayor and heavy reliance on social media over traditional media could create tensions both within and outside the party, the report said.

Although the new government has released a 100-point governance blueprint, controlling corruption and determining accountability for the September violence will be key challenges for Prime Minister Shah. Moreover, economic problems such as high youth unemployment, decline in remittances and energy crisis will also measure the performance of the Shah government. The report noted that the February 21 House of Representatives elections marked the beginning of a new chapter in the power equation, leaving behind the traditional powers that have dominated Nepal's parliamentary politics for decades. Last September, at least 75 people were killed and more than 2,000 injured in street protests by young people against the ban on social media and subsequent repressive policies by the then Prime Minister KP Sharma Oli's government.

As a result of that movement, the victory of the RSVP in the elections conducted by the government led by Sushila Karki, which was formed after the fall of Oli, has been called "historic" by the American report. The report has acknowledged that the role of Balendra Shah, the former mayor of Kathmandu Metropolitan City, was important in this victory. The report mentions that this election defeated the traditional forces like Nepali Congress, CPN-UML and Maoists and that Shah defeated former Prime Minister Oli was the biggest reversal of this election.

The changing political landscape of Nepal has also increased the interest of the US. According to the report, the Shah government has signaled a "balanced and independent" foreign policy focused on "development diplomacy". However, it is still unclear what the government's stance will be on China's Belt and Road Initiative (BRI) projects. The report states that the United States has continued to be concerned about the rights and safety of Tibetan refugees in Nepal. For 2026, the United States has allocated $13 million to help Tibetan refugees, including Nepal. The Chinese government has been putting pressure on the Nepalese government to control the free assembly and expression of Tibetans, while the United States has been allocating budgets for Tibetans living abroad.

In February 2025, US Secretary of State Marco Rubio released the MCC Nepal Compact from the administration's 90-day aid moratorium, and in July 2025, the administration announced the continuation of MCC projects in Nepal, the report noted. A November 2025 amendment added $50 million to the compact.