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By P.R. Pradhan

Foreign powers have become increasingly active in Kathmandu. It is no secret that the present interim government, led by former Supreme Court Chief Justice Sushila Karki, is widely perceived to be under strong influence from the American deep state. A recently emerged and controversial figure, Sumana Shrestha—who entered Parliament through the proportional representation list of the Rastriya Swatantra Party (RSP) and later became education minister—is believed to be acting as the de facto prime adviser to Prime Minister Karki.

Karki’s chief political adviser is Ajaya Bhadra Khanal, director of the Center for Social Innovation and Foreign Policy. Members of the Karki cabinet, in one way or another, are linked to American agencies associated with the Open Society network or the National Endowment for Democracy (NED), including the International Republican Institute (IRI), an American organization that promotes republicanism and, critics argue, advances Christian interests.

Battle among Gen-Z leaders

Sudan Gurung, a key power broker behind the post–September 8–9 unrest government, is now demanding amendment of the 2015 Constitution and the fulfillment of Gen-Z demands instead of elections. Miraj Dhungana, another prominent Gen-Z leader currently mobilizing the second phase of the Gen-Z movement, is calling for the suspension of the Constitution, the introduction of an interim constitution, and the fulfillment of Gen-Z demands. These include action against those responsible for the killing of 76 individuals, immediate prosecution of those involved in corruption, the convening of an all-sector roundtable conference, and the drafting of a new constitution.

In contrast, Rakchya Bam, a product of the American Embassy’s Youth Council, opposes Gurung and Dhungana. She supports holding elections on March 5, 2026, and believes that a future elected government will address Gen-Z demands. The divergence is puzzling, as Gen-Z figures perceived to be close to the American deep state appear divided over the movement’s core agenda. Some analysts view this as a deliberate strategy to create confusion.

Targeting national institutions

Sumana Shrestha, the spouse of a foreign national, has publicly argued that Nepal does not need the Nepal Army. Various groups are now advocating for the dissolution of the country’s national security institutions. The same groups have accused these institutions of responsibility for the extensive human and material losses during the September 8–9 unrest—an approach critics see as a calculated effort to weaken Nepal’s security apparatus.

Meanwhile, under the pretext of addressing Gen-Z demands, the government appears intent on holding a referendum on the issue of a Hindu state. Federalism, republicanism, and secularism, critics argue, were imposed on Nepal through Western influence. Now, those same forces seek to permanently eliminate the agenda of a Hindu kingdom through a referendum. Similarly, the demand for a directly elected executive—also part of the Gen-Z agenda—is seen as being shaped by Western political models.

Battlefield Kathmandu

The United States is not the only foreign actor asserting influence in Nepal aimed at containing China and India. India is making concerted efforts to bring Nepal within its security umbrella, while China, though considering the situation manageable, clearly perceives potential strategic risks emanating from Nepal. In this context, there is a growing concern that Nepal could increasingly turn into a battleground for competing foreign powers.