Nepal PM resignation: KP Sharma Oli steps down after deadly Gen Z protests

A lethal weekend, then a resignation

Nineteen people were killed and more than 500 injured in violent clashes around Nepal’s Federal Parliament and across Kathmandu on September 8. A day later, Prime Minister KP Sharma Oli resigned.

Oli, 72, submitted his letter to President Ramchandra Paudel on September 9, saying the country faced an extraordinary moment that needed a political solution within the constitution. He said he was stepping down under Article 77(1)(a) to clear the way for that effort. The move came after two days of youth-led demonstrations over corruption, shrinking freedoms, and heavy-handed policing erupted into the worst political street violence in years.

Despite daylong curfews in the Kathmandu Valley and a heavy security presence, crowds swelled near the Federal Parliament complex and in several city neighborhoods. Protesters torched government offices, attacked homes of senior politicians, and targeted police residences in Bhaktapur. Mobs tried to push toward the headquarters of the Nepali Congress and the ruling Communist Party of Nepal (UML). Kathmandu’s international airport briefly shut when smoke drifted over the runways.

The trigger was simple and combustible: a Gen Z-led campaign that began with rallies and sit-ins turned into running battles after police opened fire. By nightfall on September 8, the casualty count was grim, and the political ground under the coalition government had started to crack.

The cabinet unraveled fast. Home Minister Ramesh Lekhak, Agriculture Minister Ram Nath Adhikari, and Health Minister Pradip Paudel were among those who quit, signaling a collapse of confidence inside the ruling bloc. Oli had called for an all-party meeting and urged calm, saying he was in talks with “relevant parties,” but the momentum in the streets—and inside the coalition—was already moving against him.

For many in Nepal’s swelling youth population, the anger goes beyond one leader. It targets a political system they see as slow, patronage-heavy, and unresponsive. The country has cycled through frequent governments since the monarchy ended in 2008, while unemployment and underemployment push millions to seek work abroad. Remittances make up a large share of GDP, but at home, young graduates say they feel stuck.

In that context, the Nepal PM resignation isn’t just a personnel change—it’s a test of whether the system can course-correct before the next wave of unrest.

What triggered the unrest—and what happens next

What started as peaceful, student-heavy rallies against graft and heavy policing escalated sharply on September 8. Demonstrators defied the citywide curfew, while police used force to hold lines around the Federal Parliament and key intersections. Tear gas canisters arced over crowds, stones flew back, and gunfire cut through the noise. By evening, images of flames licking at public buildings and smashed windows in government transport hubs captured the city’s mood: raw, angry, and uncertain.

Authorities said the curfew was needed to prevent more damage and protect public property. Protesters called it a cover for excessive force. Hospitals reported surges of wounded with blunt-force trauma and gunshot injuries. Family members waited outside emergency rooms into the night for news of missing relatives. The next morning, security checkpoints dotted major arteries in and out of central Kathmandu, and many businesses kept shutters down.

Oli’s exit now shifts the action to the President’s office. Under Nepal’s constitution, the President first looks to parties in the House to propose a leader who can prove a majority. If no one can muster the numbers after successive attempts, the House can be dissolved and snap elections called within six months. Until a successor is sworn in, the outgoing prime minister typically continues in a caretaker role, handling day-to-day administration but not major policy shifts.

That timeline will be tight and politically risky. The coalition is fractured, the opposition smells opportunity, and the street movement—young, networked, and impatient—wants visible accountability. Protest leaders have demanded a credible independent probe into the use of live ammunition, suspension of commanders who ordered it, and fast-track anti-corruption measures with real teeth.

Public trust will hinge on near-term steps. Expect calls for:

  • An independent commission to investigate the 19 deaths and more than 500 injuries, with a clear mandate and deadlines.
  • Immediate relief for victims’ families and medical support for the injured.
  • Temporary rules to prevent excessive force at protests, plus transparent crowd-control protocols.
  • A timeline for anti-corruption actions, including reforms that limit political interference in investigations.
  • A roadmap on jobs: apprenticeships, targeted hiring, and support for small businesses struggling with credit and costs.

Markets and travel will watch the security posture. Kathmandu’s airport, which closed temporarily due to smoke, is vital for tourism and cargo flows. Any repeat shutdowns could hit a fragile economy that leans heavily on services and remittances. Schools and universities, frequent rally points for student activism, could face sporadic closures until tempers cool.

Regionally, there’s quiet scrutiny. Nepal sits between India and China, and both watch its politics closely. As of now, there has been no public response from Beijing on the turmoil or the resignation. Any foreign statements in the coming days will be read for hints of support, concern, or pressure—but the durable game is domestic and constitutional.

For Oli, the resignation is the latest turn in a turbulent career. A dominant figure in the Communist Party of Nepal (UML), he previously served as prime minister and sparred with rivals in episodes that tested constitutional boundaries. Supporters credit him with infrastructure pushes and a tough stance on national interests. Critics say he centralized power and missed chances to reform institutions plagued by graft.

Why did this moment tip over? Demographics and expectations. Nepal’s median age is low, and young people are hyper-connected, politically aware, and less patient with what they see as backroom deals. They want clean procurement, modern policing standards, and jobs that don’t require a one-way ticket to the Gulf or Malaysia. When protests over corruption met live rounds and curfews, the result was a wider revolt against the way politics is done.

What could calm the streets? A credible path: a caretaker setup that is transparent, a new or reshaped coalition that commits to specific reforms, and accountability for the deaths. Speed matters. So does visible fairness—no sweeping of evidence under the rug, no lopsided prosecutions, no ambiguous timelines that drag out anger.

Watch these markers in the days ahead:

  • Who President Paudel taps first to try to form a government—and on what timeline.
  • Whether major parties can stitch together a stable majority without triggering fresh defections.
  • Creation of an independent inquiry panel with powers to summon officials and publish findings.
  • Adjustments to the curfew and protest protocols, and whether violence subsides.
  • Signals on early elections if no durable coalition emerges.

The country has been here before—on the edge of a reset that either expands trust or drains it further. This time, the pressure comes from a generation that has watched too many false starts. The next moves in Kathmandu will set the tone for whether Nepal’s politics can meet the moment, or whether the streets will try to force another one.