Nepal's President Ram Chandra Poudel on Saturday, 3 May 2026, issued a landmark ordinance terminating 1,594 political appointees in a single stroke, acting on the recommendation of the Cabinet led by Prime Minister Balendra Shah. The move, described as one of the most sweeping administrative overhauls in Nepal's recent history, has sent shockwaves across the country's bureaucratic and institutional landscape.

What the Ordinance Mandates

The "Ordinance on Special Provisions Relating to the Removal of Public Officials from Office, 2026" stipulates that all appointments made prior to March 26 are automatically terminated, irrespective of tenure, benefits, or terms of appointment. The ordinance states: "Notwithstanding anything contained elsewhere in prevailing laws, public officials appointed and currently holding office in public entities as per the schedule prior to March 26 shall be automatically removed from their respective positions upon the commencement of this ordinance."

Officials across universities, state-owned enterprises, regulatory bodies, councils, boards, research institutes, and media organisations have been dismissed, leaving numerous institutions without leadership. Critics have raised concerns over institutional functioning in the absence of prompt replacement appointments.

Political Context Behind the Move

The ordinance follows the March 5 elections that brought the Rastriya Swatantra Party (RSP) to power with a near two-thirds majority in Nepal's House of Representatives. Since Shah's appointment as Prime Minister on March 26, the new government has moved aggressively to reshape the country's administrative apparatus. President Poudel had earlier suspended a parliamentary session scheduled for April 30 on the government's recommendation, effectively clearing the path for ordinance-based governance.

Controversy and Criticism

The Shah government's actions have not been without controversy. The forceful removal of squatters from Kathmandu's riverbeds — involving the demolition of huts and structures — has drawn sharp criticism. While government supporters argue the action targeted those illegally occupying riverbed land, critics contend that evictions were carried out without adequate alternative arrangements, leaving women, children, and the elderly in precarious conditions.

Additionally, several influential businessmen have been arrested on money laundering charges. A separate ordinance amending the Money Laundering Act has been issued to facilitate easier prosecution of those in positions of power. Former Prime Ministers K.P. Sharma Oli, Sher Bahadur Deuba, and Pushpa Kamal Dahal are reportedly facing money laundering investigations under the new legal framework.

What Has Won Applause

Amid the controversy, the Shah government's push for digital governance and expedited public service delivery has reportedly drawn widespread public approval. Supporters argue these reforms signal a break from Nepal's entrenched political patronage system, which has long shaped public appointments. Whether the mass dismissal translates into a more merit-based administrative structure, however, remains to be seen.

What Comes Next

The immediate challenge for the government is filling the vacuum left by 1,594 simultaneous dismissals without triggering prolonged institutional paralysis. The pace and quality of replacement appointments will be a key test of the RSP government's administrative capacity and intent. Observers will be watching closely whether the ordinance marks a genuine systemic reset or risks being perceived as a politically motivated purge.