By Anusha Thapa_____

Bhaktapur: Nepal has now spent 18 months on the Financial Action Task Force (FATF) grey list after being placed there on February 21, 2025 (Falgun 9, 2081 BS). Under the current timeline, the country is expected to exit the grey list within two years, leaving only five months to meet the required standards. Failure to do so could result in Nepal being moved to the blacklist.

Critics argue that the government led by Prime Minister Balen Shah appears to be moving the country closer to that risk rather than addressing the concerns that led to the grey-listing. They point to the withdrawal of organized crime and money laundering charges against Rastriya Swatantra Party (RSP) Chairman Rabi Lamichhane, as well as the passage of legislation allowing lawmakers to remain in office unless they are finally convicted by a court. According to critics, such measures could negatively affect Nepal's international standing.

They also claim that while government expenditure continues to rise, revenue generation has weakened. The government's proposed three percent equality tax in the fiscal year 2083/84 budget was withdrawn after widespread public opposition. Despite the reversal, concerns remain over limited revenue sources and increased government spending, including the restoration of personal secretaries for lawmakers and officials.

Although the government has repeatedly pledged to improve governance, allegations of corruption within public offices continue. Critics say citizens are often forced to pay unofficial fees for services that should be provided free of charge, with bribery allegedly remaining common in government offices. Transport offices in Sallaghari and Radheradhe have been cited as examples where intermediaries reportedly facilitate payments to officials in exchange for faster service.

Four months into the administration, opponents argue that corruption, black marketing, and middlemen continue to operate largely unchecked. They also criticize the government's inability to dismantle syndicates in various sectors while expanding the number of political advisers. The Prime Minister currently has 27 advisers, while ministers have been assigned up to nine advisers each, with benefits comparable to those of ministers and state ministers.

The government also increased the salaries of civil servants by 21 percent while maintaining a monthly cost-of-living allowance of NPR 5,000. Critics argue that this decision also resulted in higher salaries for constitutional office holders, including the Prime Minister, ministers, lawmakers, and the President.

RSP Chairman Rabi Lamichhane had previously claimed that he was removed from the position of Home Minister after preparing to reopen 27 corruption cases. With the party now leading the government, critics question why those cases have yet to be reopened and whether the earlier claims were politically motivated.

The government had also announced plans to retire civil servants after 30 years of service or upon reaching the age of 55. However, the proposal has yet to be implemented through legislation.

Opponents further argue that the administration has failed to identify new sources of revenue, recover illicit wealth, or take stronger action against corruption by confiscating illegally acquired assets. They note that following the RSP's victory in the Falgun 21 election, expectations were high that the government would ban high-denomination banknotes, revive closed industries, reduce dependence on foreign loans, and encourage the return of Nepali migrant workers through free visa and ticket schemes.

According to critics, those promises have not materialized. They point out that the current budget still depends heavily on foreign borrowing, labor migration continues at previous levels, and no significant progress has been made in reopening industries or strengthening domestic production.

Nepal's economy has remained under pressure for the past five years. Critics also highlight the extensive damage to public and private property during the protests of September 8 and 9 (Bhadra 23 and 24), arguing that reconstruction has yet to begin despite the large financial burden on the state.

They also claim that Nepal's diplomatic relations have shown little improvement under the current administration, with international engagement remaining limited.

Supporters of the government often argue that opposition parties have obstructed its work. Critics reject that explanation, noting that the RSP leads the government, holds the prime ministership, and commands near two-thirds support in Parliament, leaving little justification for blaming the opposition.

Market regulation has also become a point of criticism. Opponents claim that weak monitoring has allowed excessive price increases, while retired taxi license plates are reportedly being traded illegally for as much as NPR 1.5 million. They argue that reopening vehicle registrations for taxis, four-stroke tempos, and freight vehicles could have reduced such black-market practices while increasing government revenue.

Critics further question the government's priorities, arguing that symbolic political gestures have overshadowed practical governance. They believe the administration lacks a clear strategy for economic recovery and public service reform, with Cabinet meetings often focused more on transfers and appointments than on broader national issues.

The government's dismissal of Labor Minister Deepak Kumar Sah without reportedly seeking an explanation has also drawn attention. Meanwhile, speculation about replacing other ministers has circulated for weeks without any official action.

Political observers critical of the administration say the government is already facing growing public dissatisfaction despite its strong parliamentary position. They argue that unless concrete improvements are made in governance, economic management, anti-corruption efforts, and public service delivery, public confidence may continue to decline