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16 September 2025

Nepal’s New Cabinet Cancels Oli-Era Proposals After Protests

Sushila Karki’s interim government honors Gen Z protest victims, launches sweeping reforms, and sets the stage for fresh elections amid national upheaval.

In a dramatic turn of events that has captured the attention of the region, Nepal’s newly appointed Prime Minister Sushila Karki has wasted no time in making sweeping changes to the country’s governance. On Monday, September 15, 2025, Karki’s interim cabinet convened its first meeting, immediately cancelling all proposals passed during the tenure of former Prime Minister KP Sharma Oli. This decisive move comes in the wake of nationwide youth-led protests—dubbed the Gen Z protests—that resulted in the deaths of at least 72 people and ultimately led to Oli’s resignation.

The cabinet’s actions were both symbolic and substantive. According to reports from India Today and The Hindu, the government declared a national day of mourning to be observed on September 17, 2025, in honor of the young protesters who lost their lives. On that day, national flags will fly at half-mast not only across Nepal but also at all Nepali embassies and diplomatic missions around the world. The cabinet also recognized all those killed during the protests as martyrs—a gesture that resonated deeply with the grieving families and a nation still reeling from the violence.

But the cabinet did not stop there. In a bid to ensure accountability, the government announced the formation of a judicial commission to investigate the use of force during the demonstrations. The commission’s mandate is clear: to uncover who gave the orders to open fire on protesters, resulting in the tragic deaths. Home Minister Om Prakash Aryal, himself a prominent anti-corruption advocate, stated after the meeting, “We have agreed in principle to form such a commission. Who will be on the commission and its formation will be decided later.” The commission’s findings are expected to play a pivotal role in shaping both justice and reconciliation in the months ahead.

To further commemorate the victims, the cabinet decided to build a Gen Z Memorial Park—a lasting tribute to the young lives lost and a reminder of the price paid for political change. The government also declared a public holiday on September 17, ensuring that the country pauses to reflect on the events that have so profoundly altered its political landscape.

The new cabinet is still taking shape, but several key figures have already been sworn in. President Ramchandra Paudel administered the oath of office to three ministers—Kulman Ghising, Rameshwor Khanal, and Om Prakash Aryal—at a ceremony held at the President’s Office, Sheetal Niwas. The historic building itself bears scars from the recent protests, a stark reminder of the unrest that swept the nation.

Kulman Ghising, a name familiar to most Nepalis, has taken charge of the Energy, Water Resources and Irrigation; Physical Infrastructure and Transport; and Urban Development ministries. Ghising, 54, is celebrated for his tenure as Executive Director of the Nepal Electricity Authority, where he ended the country’s chronic power outages—an achievement many regarded as miraculous. As The Hindu noted, Ghising’s leadership brought 24-hour electricity to Nepal for the first time in years, earning him the moniker “power saviour.” His removal by the previous Oli government earlier this year was widely criticized, with many suspecting political motives. Now, Ghising’s return to government is seen as a signal of renewed commitment to infrastructure and energy reform.

Rameshwor Khanal, 55, steps into the role of Finance Minister. A former finance secretary with a reputation for integrity and independence, Khanal is known for his long-standing advocacy of economic reform. He recently submitted a 400-page recommendation for economic reforms to the previous government, and now has the opportunity to implement those ideas. After assuming office, Khanal emphasized the importance of rebuilding confidence in the private sector, especially in light of the devastation wrought by the protests. “We are in touch with the private sector,” he said. “We will also seek suggestions from them, as we need to take the private sector into confidence to boost revenue.” Khanal’s past includes serving as an economic advisor to Baburam Bhattarai and holding board positions at several major public institutions, further bolstering his credentials.

Om Prakash Aryal, 49, rounds out the trio of new ministers, taking charge of Home Affairs as well as Law, Justice, and Parliamentary Affairs. Aryal is a Supreme Court advocate with a track record of challenging corruption and filing high-profile public interest litigation. He played a key role in the behind-the-scenes negotiations that paved the way for the interim government’s formation. Aryal’s legal activism is well-known; he was among the petitioners who challenged the dissolution of Parliament by KP Sharma Oli in 2021 and has consistently advocated for social justice and good governance. After taking office, Aryal reaffirmed the government’s commitment to holding free and impartial elections on schedule, as well as rebuilding infrastructure and ensuring robust governance.

At the helm of this interim government is Sushila Karki herself—a trailblazer in Nepali politics and the nation’s first female Prime Minister. Karki, 73, previously served as Chief Justice of Nepal’s Supreme Court from 2016 to 2017. Her appointment followed the resignation of KP Sharma Oli, who stepped down after days of intense youth-led protests. Karki’s rise to leadership is historic, not only because of her gender but also because of the circumstances—her appointment was, as she put it, “from the streets.” She emphasized her government’s temporary mandate, stating, “We will not stay here more than six months in any situation. We will complete our responsibilities and pledge to hand them over to the next Parliament and Ministers.”

The interim government’s primary task is to steer Nepal toward fresh elections, scheduled for March 5, 2026. Karki has made it clear that her administration’s focus will be on restoring order, rebuilding damaged infrastructure, and ensuring a free and fair electoral process. She also acknowledged the demands of Nepal’s youth, who have called for an end to corruption, good governance, and greater economic equality. “The youths of Nepal are demanding an end to corruption, good governance, and economic equality,” Karki said, echoing the sentiments that fueled the Gen Z protests.

As the new government moves forward, more cabinet appointments are expected, with plans to expand the interim cabinet to 11 members. For now, the four-member cabinet—Karki and her three ministers—will hold additional portfolios until further appointments are made. The challenges ahead are significant: investigating the tragic events of the protests, restoring public trust, implementing long-overdue reforms, and preparing the nation for a pivotal election.

Nepal stands at a crossroads, shaped by the courage of its youth and the resolve of its new leaders. The coming months will test the government’s ability to deliver on its promises and chart a new course for the country. For many, the hope is that the sacrifices made during the Gen Z protests will not be in vain—and that Nepal’s future will be brighter, more just, and more inclusive.