KATHMANDU, April 15: The US Congressional Research Service (CRS) has released two reports on Nepal within the past two weeks, highlighting the country’s evolving political landscape, its relations with India and China, and emerging concerns surrounding the new government led by Balendra Shah.
The first report, published on March 31, 2026, focuses on Nepal’s parliamentary elections and notes a dramatic shift in the country’s political dynamics. It highlights the rise of Balen Shah and the Rastriya Swatantra Party (RSP), describing the election outcome as a major setback for traditional political parties.
According to the report, the RSP’s clear majority victory reflects what it terms a “rejection of established political forces.” Analysts cited in the document characterize the alliance between Balen Shah and the RSP as a “marriage of convenience,” driven more by circumstances than ideological alignment. The report also points to potential internal tensions between Shah’s leadership and the party’s structure.
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A second CRS report, released on April 7, 2026, provides a broader overview of Nepal, including its economic condition and foreign relations under the new government. It examines Nepal’s ties with both India and China, with particular attention to China’s Belt and Road Initiative (BRI) and its implications for Nepal’s development and strategic positioning.
Both reports describe Nepal’s recent political developments as a historic turning point, referencing the parliamentary elections held on March 5, the formation of a new government, and the challenges that lie ahead.
The reports also reiterate a longstanding element of US policy toward Nepal: continued support for Tibetan refugees residing in the country.
The CRS analyses draw on a range of expert opinions and media sources to assess Nepal’s transition, suggesting that while the political transformation offers new opportunities, it also introduces uncertainty in governance and foreign policy direction.
