PM Karki Moves to Complete Cabinet, Names Key Ministers

Having assumed the country’s premiership on Friday, Prime Minister Sushila Karki has accelerated efforts to finalize her cabinet. Her schedule grew busier on Sunday, immediately after formally taking office at Singha Durbar, as she focused on filling key ministerial positions.

Sources close to the Prime Minister indicate that former Finance Secretary Rameshore Khanal has been finalized as Finance Minister. Kulman Ghising, the former Executive Director of the Nepal Electricity Authority, announced on X (formerly Twitter) that he has been given the responsibility of three ministries: Energy, Water Resources and Irrigation; Physical Infrastructure and Transport; and Urban Development.

Advocate Om Prakash Aryal has been reportedly handed the portfolios of Ministry of Home Affairs and Ministry of Law in the interim government. Aryal, known for his close ties to Kathmandu Metropolitan Mayor Balen Shah, represented the Gen Z group in negotiations over the new government formation.

Karki appears to be aiming for a cabinet that balances policy expertise with public trust. Sources suggest she is preparing to limit her cabinet to just 10 members.

Khanal, widely regarded as an intellectual and principled technocrat, brings extensive experience in economic policy reform, public financial management, budgeting, tax policy, and foreign aid administration. A few months ago, as chairman of the High-Level Commission on Economic Reform Suggestions, he submitted a 447-page report to the then KP Sharma Oli government, detailing the country’s economic weaknesses, urgent corrective measures, and long-term strategies.

Ghising remains popular among the public for ending frequent load-shedding. Despite strong opposition, the outgoing Oli government removed him from the Nepal Electricity Authority last year, appointing Hiteendra Dev Shakya in his place.

On Sunday, following the Prime Minister’s recommendation, President Ramchandra Paudel appointed senior advocate Savita Bhandari Baral as Attorney General, making her the first woman to hold the post.

Immediately after taking office on Sunday, Karki announced in a meeting with senior government officials that the government would support businesses damaged by arson and vandalism during the Gen Z protests. Addressing secretaries, she emphasized that affected enterprises would receive assistance through concessional loans (soft loans) and other measures after private-sector losses were assessed.

Praising entrepreneurs determined to move forward despite adversity, Karki warned that attacks on private property would not be tolerated. “Some businesses are now in a position where they may not recover, and the state will give this serious consideration,” she said.

A senior Finance Ministry official said discussions are ongoing on options such as concessional refinancing, extending interest-payment periods on existing loans, and providing additional time for tax payments. Final decisions are pending, with decisive talks expected once the Finance Minister assumes office.

Private-sector entrepreneurs are awaiting firm government action, while businesses are actively compiling damage reports. Hemraj Dhakal, Vice President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that while exact figures are not yet available, losses have been significant.