US Congressional Report Questions Relationship Between Rastriya Swatantra Party and Prime Minister Balen Shah

Kathmandu. The United States Congress has expressed concerns regarding the self-serving nature of the relationship between the Rastriya Swatantra Party (RSP) and Prime Minister Balen Shah. This observation was made in a study conducted by the Congressional Research Service (CRS).

The CRS report states, 'Shah, who remained independent as the Mayor of Kathmandu, contested the election from the RSP under a process described as a self-serving strategy.'

The report notes that Prime Minister Shah, who took the oath of office on 27 March (Chaitra 13), faces significant challenges ahead. According to the CRS, Shah's popularity is rooted in an 'anti-establishment' image, yet his governing style and clear policy plans remain undefined.

The report concludes that Shah's mixed performance as mayor and his reliance on social media over traditional media could create tension both within and outside his party in the future.

Although the new government has unveiled a 100-point governance roadmap, the report highlights that controlling corruption and ensuring accountability for the September violence remain major challenges for Shah. Furthermore, economic issues such as high youth unemployment, declining remittances, and the energy crisis are cited as key metrics for evaluating the performance of the Shah administration.

• The Fall of Oli

The report states that the House of Representatives election held on Falgun 21, which sidelined traditional powers that had dominated Nepali parliamentary politics for decades, marked a new chapter in the country's power dynamics.

It mentions that in September (Bhadra 23-24), youth took to the streets to protest the ban on social media and subsequent repressive policies imposed by the then-Prime Minister K.P. Sharma Oli's government. The report claims that at least 75 people died and over 2,000 were injured during that Gen-Z movement.

The US report describes the victory of the RSP in the subsequent election—held under the government led by Sushila Karki following the fall of Prime Minister Oli—as 'historic.'

It also notes the influence of former Kathmandu Metropolitan City Mayor Balen Shah in that victory. The election results defeated traditional powers such as the Nepali Congress, CPN-UML, and the Maoists. The report considers Balen Shah's defeat of former Prime Minister Oli as the biggest upset of the election.

• US Interests

The changing political landscape in Nepal has also increased US interest. According to the report, the Shah administration has signaled a 'balanced and independent' foreign policy focused on 'development diplomacy.' The report notes that the Shah government's stance on China's Belt and Road Initiative (BRI) projects remains unanswered.

On the other hand, the report mentions that the US has consistently shown interest in the rights and protection of Tibetan refugees in Nepal. Additionally, the US has allocated $13 million for the support of Tibetan refugees for 2026, which includes Nepal.

While the Chinese government pressures the Nepali government to control the free assembly and expression of Tibetans in Nepal, the US continues to allocate budgets for Tibetans living abroad.

The CRS report states, 'In February 2025, Secretary of State Marco Rubio exempted the MCC Nepal Compact from the administration's 90-day aid suspension, and in July 2025, the administration announced that MCC projects in Nepal would continue. A November 2025 amendment added $50 million to the compact.'