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Two Resignations, Border Anger: Trouble Mounts For Nepal's New Government

Nepal's Gen-Z-led government faces its first ministerial resignations within weeks, with Labour Minister Dipak Kumar Sah and Home Minister Sudan Gurung stepping down. A new border-inspection rule and rising fuel costs amplify public frustration as the Shah administration grapples with governance challenges.

Why It Matters

The resignations test the reform promises of the ruling party and threaten political stability, while border policies and inflation shape everyday life for Nepalis.

Timeline

9 Events

Shah temporarily takes charge of the Home Ministry

April 22, 2026

Prime Minister Balen Shah takes charge of the Home Ministry on a temporary basis until a replacement is named.

Shah administration under scrutiny amid controversies

April 2026

Early controversies, ministerial exits, and unpopular policies place Shah's administration under intense scrutiny.

Nepal ranks 109th on CPI (Transparency International)

April 2026

Nepal is ranked 109th out of 180 countries on Transparency International's Corruption Perceptions Index.

Inflation and cost-of-living concerns grow

April 2026

Inflation rises and restrictions tighten, fueling public dissatisfaction with the new government.

Fuel prices rise following Iran-US conflict

April 2026

Petrol prices jump from around 150 NPR to nearly 225 NPR per litre, contributing to higher living costs amid tightening restrictions.

Border-area residents affected as enforcement hits daily life

April 2026

Border residents, who rely on cheaper Indian goods for daily essentials, face disruption and anger as enforcement actions circulate on social media.

New customs rule on goods from India enforces duty

April 2026

A rule requiring customs duty on goods worth more than 100 NPR brought from India is being enforced, with authorities checking individuals and confiscating goods that refuse to pay.

Sudan Gurung resigns as Home Minister

April 2026

Home Minister Sudan Gurung resigns, citing questions over his investments and personal dealings; he says morality is greater than position and that public life must remain clean.

Dipak Kumar Sah resigns as Labour Minister

April 2026

Labour Minister Dipak Kumar Sah resigns 13 days after taking the oath, following pressure from within his party, after allegations that he misused his office to secure a board position for his wife at the Health Insurance Board.