Nepal PM KP Sharma Oli Resigns Amid Gen-Z Uprising That Claimed 19 Lives; India Issues Travel Advisory

Moneylife Digital Team 09 September 2025

Investor Interest

Nepal plunged deeper into political and security turmoil on Tuesday as prime minister (PM) KP Sharma Oli resigned under mounting pressure from Gen-Z-led protests that have rocked the country since Monday, leaving 19 people dead and sparking widespread violence in Kathmandu and beyond. Mr Oli tendered his resignation to president Ram Chandra Poudel, citing the 'abnormal situation' and invoking Article 77(1) of the Constitution to 'pave the way for a constitutional resolution'.

Mr Oli, who took office on 14 July 2024, under a power-sharing deal with the Nepali Congress, was forced out after two days of unprecedented protests triggered by anger over corruption scandals and a controversial social media ban. The crisis deepened as the ruling coalition fractured, with several ministers, including the home, agriculture, health and population and youth and sports ministers, stepping down in protest against the government’s use of force.

Gagan Thapa and Bishwo Prakash Sharma, both general secretaries of the Nepali Congress, publicly urged Mr Oli to quit, declaring that the seven-point agreement between their party and Mr Oli’s Communist Party of Nepal (Unified Marxist–Leninist) had lost relevance. Reports also suggested that Kathmandu's mayor Balen Shah may be appointed interim PM.

The unrest escalated dramatically on Tuesday as furious demonstrators stormed and set fire to the Parliament building in Baneshwor. They also broke into the Singh Durbar, the government’s administrative hub and torched its main gate. Party headquarters of both the CPN-UML and the Nepali Congress were vandalised and set ablaze in the Kathmandu Valley.

Local media reported that residences of top leaders, including those of former PMs Pushpa Kamal Dahal and Sher Bahadur Deuba, as well as president Ram Chandra Poudel, were attacked. Viral videos showed protestors torching Mr Oli’s residence in Bhaktapur.

The violence, which initially erupted after 19 protestors were killed during clashes with police on Monday, has now spread to multiple districts. Curfews have been imposed across Kathmandu and other cities, but officials admitted the situation remains 'tense'.

Chief district officers in Lalitpur and Bhaktapur confirmed that protestors had targeted ministers’ residences and government offices, while emphasising that authorities were exercising 'maximum restraint' and had not ordered police to open fire.

The unrest has sent Nepal into political uncertainty, with lawmakers from the Rastriya Swatantra Party—the country’s fourth largest—resigning en masse to demand an interim government.

The crisis has also prompted India to issue a travel advisory, asking its citizens to defer travel to Nepal until the situation stabilises. The Union ministry of external affairs (MEA) urged Indian nationals already in the country to stay indoors, avoid public gatherings, and follow advisories from local authorities and the Indian Embassy in Kathmandu.

“We are deeply saddened by the loss of many young lives. As a close friend and neighbour, we hope that all concerned exercise restraint and resolve issues through peaceful dialogue,” the MEA says in a statement.

Press Release: Advisory for Nepal??
?? https://t.co/KWAzgnJaL1 pic.twitter.com/2pBOSYt6oP
— Randhir Jaiswal (@MEAIndia) September 9, 2025

The turmoil has disrupted connectivity as well, with flights between Delhi and Kathmandu cancelled. Air India suspended its Delhi-Kathmandu services citing airport closure, while IndiGo announced a suspension of all flights to and from Kathmandu, advising passengers to either reschedule or seek refunds.

With Mr Oli’s resignation and the collapse of the ruling coalition, Nepal now faces its most severe political crisis in recent years, with protestors vowing to continue their agitation until an interim arrangement reflecting their demands is in place.

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