Honeymoon period over: Balen Shah faces first major political test as protests grip Kathmandu

Kathmandu: Public resentment is intensifying against the fledgling administration of Prime Minister Balen Shah, less than 30 days after the former Kathmandu mayor assumed power with a two-thirds majority. Demonstrations have migrated from local streets to the nation's administrative hub, Singha Durbar, as students, civic groups, and citizens mobilise across the capital and beyond.
According to reports from India Today, a primary catalyst for the unrest is a new government mandate requiring customs duties on all goods valued over Rs 100 imported from India.
Residents in border communities contend that the regulation severely disrupts their daily existence, as they remain dependent on cross-border trade for fundamental necessities. Critics of the policy argue it places an unjustified financial strain on the populace while ignoring the practical socioeconomic realities of the border regions.
Student Activism and Youth Unrest
The administration is also facing a significant backlash over its purported attempts to marginalise or dismantle student unions linked to established political organisations.
Student representatives have characterised the government’s tactics as "repressive," alleging that leadership has chosen state force over diplomatic engagement. This perceived hostility has energised the youth, with thousands of students participating in nationwide rallies. In a notable display of widespread social involvement, many protesters have appeared in school uniforms, carrying placards and chanting slogans to demonstrate that the movement has transcended partisan politics.
Allegations Against the Home Ministry
The focus of the protests has increasingly shifted toward Home Minister Sudan Gurung, who is embroiled in a scandal involving claims of disproportionate wealth and illicit financial conduct.
Opposition factions and protesters allege that Gurung has been involved in dubious business dealings, including purported connections to individuals implicated in financial fraud. Media outlets in Nepal have highlighted documents that reportedly link the minister to shareholdings and investments in controversial companies. These revelations have led to sustained demands for Gurung's resignation on ethical grounds, with civil society groups making the allegations a central pillar of the current upheaval.
Administrative Challenges Mount
The escalating scale of the protests has placed the Shah government under immense scrutiny as it navigates a trifecta of crises: economic dissatisfaction, youth-led unrest, and internal corruption allegations.
What originated as specific grievances regarding trade and administrative policy has matured into a formidable political test. Opposition voices are gaining momentum both in public squares and within the broader legislative landscape of Nepal, challenging the stability of the month-old government.