Nepal Faces Collapse during Corruption Scandal

By Arbina Shakya, Aanchal Simkhada , Chief Reporters of LP-III

Kathmandu, 21 August 2025

Nepal is facing a serious crisis as unemployment reaches 39%, forcing over a million young people to leave the country. The economy is struggling, and a large visa scam involving manpower agencies,allegedly protected by political leaders like Ramesh Lekhak(Binayak Bastola) and Arzu Rana Deuba(Yangchen Tsomo Baiji) has left many youths stranded and exploited abroad.

Inside parliament, tensions are high as delegates blame each other for the crisis. The delegate  of Ramesh Lekhak said the delegate was unaware of the scam and blamed Arzu Rana Deuba. Pushpa Kamal Dahal(Mikel Shrestha) responded, “This claim means nothing now, as trust between delegates is already broken.” Janardan Sharma(Pranzole Mahara Chhetri) accused Sher Bahadur Deuba(Sauravi Shrestha) of being involved due to his family ties with Arzu Rana, a claim supported by Sobita Gautam’s delegates.

Arzu Rana defended herself, saying, “Many people got jobs because of the agency and our commitment.” Sher Bahadur Deuba pushed back, saying, “Some accusations are false and based on leaked videos that may not be real. Social media can’t always be trusted.”

Youth leader Gagan Thapa pointed at Ramesh Lekhak, calling the delegate “the real culprit who manipulated Arzu Rana and the agency.” Arzu Rana, however, urged everyone to stop blaming each other and focus on resolving the crisis.

C.K. Raut criticized Arzu Rana and Ramesh Lekhak as corrupt leaders hurting Nepal. Sher Bahadur Deuba questioned why the parties RSP AND CPN UML stayed silent and hinted at secret alliances.

As the blame game continued, Sobita Gautam demanded Arzu Rana stop benefiting from human trafficking and said, “This must end.”

Leaked documents later showed that World Bank funds meant for youth employment were misused not only by Sher Bahadur Deuba but also by Arzu Rana and Gokul Prasad Baskota(Ojaswi Pant), who are accused of sending money to fake companies abroad. Pushpa Kamal Dahal was found to be manipulating Shishir Khanal(Pratez Dangi) while secretly working with Deuba to steal funds.

With global lenders and neighboring countries suspending support, Nepal faced the risk of economic collapse and regional instability.

After Gagan Thapa demanded an end to corruption, and pressure from leaders highlighting government neglect of rural development and inequality, a resolution was finally reached.The agreement promises stronger anti-corruption actions, renewed international aid, and a commitment to rebuild trust and stability in Nepal.