Can Systemic Change in Nepal Yield Results?
April 8, 2026If you had bet on Nepal’s government trajectory unfolding the way it did in late 2025 and early 2026, most people would have lost. A nation long plagued by decades-old governance failures and a revolving door of political figureheads, often tied to corruption, has been embedded in every Nepali’s living memory.

Corruption is felt across all levels of civic life, something Nepalis know all too well. So, on September 8, 2025, when the Gen-Z movement toppled the government following protests against corruption, most people were in disbelief and awe. Do we finally get to shed the weight of old political hegemony and step into the light? The answer is maybe.
The culmination of the youth-led protests resulted in a peaceful transition of power with former chief justice Sushila Karki elected as the country’s first female prime minister. On March 5, 2026, a peaceful election followed, delivering a sweeping victory for the Rashtriya Swatantra Party (RSP), which secured 125 out of 165 direct election seats — a 75% margin.
On March 27, Balen Shah, the former mayor of Kathmandu, a rapper and structural engineer by profession, became the country’s youngest leader at 36. RSP’s landslide victory and Balen’s rise signal a break from entrenched power in Nepal and a shift toward systemic change — a core mandate of the movement.
Balen selected 16 cabinet ministers, merging several ministries to reduce redundancy.1 The cabinet includes many new faces, in line with the movement’s message and Nepal’s evolving direction. The DJ-turned-politician, 38-year-old Sudan Gurung, was appointed Home Minister after emerging as a key leader of the Gen Z movement following the September protests.2
Among those appointed, Dipak Kumar Shah was selected as Minister of Labor, Employment, and Social Security (MOLESS). Shah, however, was an unusual choice with a background rooted in public health rather than labor policy. Whether Shah could use his public health acumen to create employment opportunities for the youth, curb migration, and reform Nepal’s labor policy remained to be seen. His appointment, however, had already raised concerns. Shah had faced fraud charges, including a 2016 arrest for allegedly defrauding students through false promises of college admission. On April 9, he was removed from the post following allegations that he misused his position to influence the reappointment of his wife to a government board.
With so much on the line, the new government cannot afford any more missteps. A lot is riding on the shoulders of MOLESS, this cabinet, and the newly formed government — from financial transparency to ensuring people have a life of dignity and find opportunity at home. In a country long-riddled with poverty, migration, trafficking, and labor exploitation, Shah has a lot to deliver.
A recent policy paper on outmigration and labor mobility in Nepal from the Centre for the Study of Labour and Mobility highlights how a struggling agriculture sector is a major driver of migration in Nepal.3 The current climate change trends have overextended those struggles. GoodWeave’s report on the intersection of climate change and child labor, shows how environmental stressors are linked to increased risks of child and forced labor migration.4
To be successful as head of MOLESS, Shah must undertake meaningful labor reform at the intersection of child labor, minimum wage, decent working conditions, climate, gender, and social protection. This begins with coordination efforts across government ministries. Nepalis have been clear from the outset that a new Nepal means the ability to live and work at home with dignity.
That can only be possible if labor rights are embedded across Nepali governance and major policy reforms center on vulnerable populations, including children. This includes revising labor laws to protect Nepalis against trafficking, investing in labor enforcement systems, improving data collection and dissemination, and providing training and resources for labor inspectors.
Community-based programs must be at the heart of MOLESS’s, with a focus on children and vulnerable communities, including those impacted by climate-related shocks. The new labor ministry must strengthen agricultural resilience and technology, and ensure more equitable access to land for the landless to reduce migration-related risks. Subsidized loans, vocational training, technical assistance, and income-generating opportunities could help retain Nepalis at home.
For too long, Nepalis have traveled abroad in search of a better future, only to face exploitation, abuse, and in some cases, death. Keeping Nepalis at home requires investment in jobs and meaningful work, and that begins with integrating labor rights in every aspect of governance. Nepalis have called for change to our current system with their lives, and it is time for the government to deliver.
This post has been updated to reflect that, on April 9, Deepak Kumar Sah was removed as Minister of Labor, Employment, and Social Security following allegations of misuse of his position.5
1 Republica, Balen Shah govt restructures cabinet, reduces ministries to 16
2 Times Now News, Sudan Gurung: The DJ Who Is Now Nepal’s Home Minister
3 The Centre for the Study of Labour and Mobility, Outmigration and Labor Mobility Issues and Policies in Nepal
4 GoodWeave, New Report Documents Links Between Climate Impacts and Child and Forced Labor in Nepal
5 The Kathmandu Post, Labour minister Sah sacked over disciplinary breach
