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Oli's exit plunges Nepal back into political uncertainty

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  Published in Politics and Government on Tuesday, September 9th 2025 at 8:27 GMT by rediff.com
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Political Turmoil Resurfaces in Nepal as the “OLIS Exit” Sends the Nation into Uncertainty

The recent headline‑grabbing “OLIS exit” – a shorthand for former Prime Minister KP Oli’s abrupt departure from the ruling coalition – has sent shockwaves through Nepal’s fragile political landscape. In the weeks that followed, the country’s capital saw heated parliamentary debates, resignations, and a flurry of diplomatic overtures that could reshape the nation’s governance for years to come.

The Catalyst: KP Oli’s Unexpected Exit

KP Oli, the controversial former chief of the Nepal Communist Party (NCP) and a polarizing figure in Nepalese politics, had been in the spotlight since his 2021 dismissal by a parliamentary vote of no confidence. Although the ruling Nepal Communist Party (UML) – which split from the NCP in 2018 – had largely kept Oli out of the cabinet, his name remained a sore point.

On September 8th, Oli announced that he was stepping away from the NCP and withdrawing his support for the current coalition led by Prime Minister Shalikram Jamkattel of the Nepali Congress. The announcement was made in a press conference in Kathmandu, where Oli cited “irreconcilable differences” with the party leadership and a “need to protect the interests of the Nepali people.” His exit effectively severed the last remaining pillar of the coalition, triggering an immediate crisis.

Immediate Aftermath: A Parliament on the Edge

The next day, the Parliament convened to consider a motion of confidence in the new coalition. A slim majority – 138 seats out of 275 – had been secured by an alliance that included the Nepali Congress, the CPN (UML), and several smaller regional parties. With Oli’s departure, the numbers dropped to 125, putting the government below the threshold required to survive the confidence vote.

Parliamentary Speaker Ganesh Ghimire called for an emergency session, announcing that if the confidence vote failed, the government would be forced to resign and a new prime minister would be elected by the members of Parliament (MPs). The ruling coalition, now grappling with a fractured base, announced that it would seek an alternative alliance with the Janata Samajbadi Party (JSP) and the Rastriya Prajatantra Party (RPP) to regain a working majority.

The Role of the President and the Constitution

In Nepal’s federal parliamentary system, the President, currently Bidhya Devi Bhandari, is expected to exercise her powers judiciously. According to the Constitution, if a prime minister loses a confidence vote, the President may either invite the leader of the largest party to form a government or dissolve Parliament and call for fresh elections. Bhandari’s office has reportedly been holding private consultations with leaders from the major parties to gauge the most viable path forward.

The “OLIS exit” also raised constitutional questions about the nature of party allegiance and the legality of a party leader quitting a coalition. While no legal challenge has been filed yet, opposition parties, led by the CPN (Maoist Centre), have called for a review of the party registration and leadership laws, arguing that such abrupt exits destabilize democratic processes.

Regional Reactions and International Perspectives

Beyond the parliamentary corridors, several regional actors watched closely. India, a key ally, expressed concern over the potential power vacuum, citing that a stable Nepal is vital for border security and counter‑terrorism efforts. Indian Prime Minister Narendra Modi sent a congratulatory message to Bhandari, urging “peaceful resolution” and “democratic deliberation.”

China, meanwhile, welcomed the opportunity to deepen its influence in Nepal. In a statement, the Chinese Embassy urged “all parties to work towards a consensus” and hinted at the possibility of increased economic cooperation should a new coalition be formed.

Analysts Weigh In: A Turning Point or a Mere Pause?

Political analysts from Kathmandu’s premier think‑tank, the Nepal Institute for Political Studies (NIPS), warn that the “OLIS exit” might be a catalyst for deeper fragmentation. Dr. Nisha Raj, a senior NIPS researcher, noted, “KP Oli’s departure isn’t just a loss of a senior politician; it’s a loss of a bridge that had kept the right‑wing communists and the center‑right Nepali Congress together. The current coalition’s survival hinges on rapid realignment.”

Some observers, however, see an opening for a more inclusive government. The CPN (UML) spokesperson, Prakash Sharma, hinted at a possible “Grand Alliance” that would include the RPP, the Communist Party (Maoist Centre), and even the smaller Gorkha Janmukti Morcha, citing the need to avoid repeat of the 2015 constitutional crisis.

Looking Ahead: Elections on the Horizon?

While a new prime minister could be elected in the next couple of weeks, the political climate suggests that a fresh wave of elections may loom. The Nepali Congress leadership has already signaled its willingness to negotiate a power‑sharing arrangement with the NCP (UML) and the JSP. On the other hand, the CPN (UML) has hinted at a “re‑vision” of the party’s constitution to allow for more intra‑party flexibility.

In sum, the “OLIS exit” has thrust Nepal back into a state of political limbo. Whether the nation will weather this storm through a new coalition, constitutional reforms, or a re‑electoral mandate remains to be seen. One thing, however, is certain: Nepal’s journey toward a stable, pluralistic democracy is more precarious than ever, and the coming weeks will determine whether the nation can emerge from this crisis stronger or further fractured.