Kavrepalanchok. As dissatisfaction with Prime Minister Balendra (Balen) Shah's working style grows, signs of a major political upheaval have emerged within the coalition partner Rastriya Swatantra Party (RSP). A 24-hour long meeting held between RSP Chairman Rabi Lamichhane and Vice Chairman as well as Finance Minister Dr. Swarnim Wagle on August 17 and 18, 2026 (Saun 2 and 3, 2083 BS) at Dusit Thani Himalayan Resort in Dhulikhel, Kavrepalanchok, has made it clear that a strategic encirclement against the Prime Minister has begun. The secret has been revealed that the meeting, said to be held under the guise of a family gathering, actually focused on a serious debate regarding a change in government leadership and internal crisis.
According to a high-level source, during the intense dialogue in Dhulikhel, Finance Minister Dr. Wagle presented an extremely serious and concrete proposal to Chairman Lamichhane to seek an alternative to Prime Minister Balen Shah. The source claims Dr. Wagle put forward the condition that either Rabi Lamichhane himself should step forward to claim the premiership, or if he chooses not to do so, Lamichhane must fully support Wagle himself to move forward as the Prime Minister. According to sources, both top leaders have become extremely disgruntled with Prime Minister Shah's recent attitude and working style. Sources stated that Dr. Wagle expressed grave concern during the meeting that Balen's current working style and stubbornness would lead to losing the achievements made by the government so far, ultimately plunging RSP into extreme instability and disaster.
This Dhulikhel meeting took place against the backdrop of escalating mistrust between Prime Minister Shah and Finance Minister Wagle. Recently, Prime Minister Balen has been openly expressing dissatisfaction with the Finance Minister's economic policies. In particular, the Prime Minister criticized Wagle, stating that he placed more emphasis on foreign loans rather than capital formation and failed to bring enthusiasm to the national economy. Additionally, after Gopal Prasad Bhatta, considered close to Wagle, was appointed as Chairman of the Securities Board of Nepal (SEBON), the Prime Minister's side strongly opposed it, calling it a 'conflict of interest'. As a result, the controversy reached its peak after the Prime Minister bypassed the Finance Minister and began parallel economic consultations with the Governor of Nepal Rastra Bank and private sector representatives.
Furthermore, internal friction is growing within RSP over discussions of a cabinet reshuffle, party statute amendments, and judicial appointments. While the Prime Minister continues to question the Finance Minister's performance, Chairman Lamichhane has also been closely monitoring the competence of ministers close to Balen. Although some have referred to this Dhulikhel meeting as a routine retreat, political circles view it as a mobilization against Prime Minister Shah and preliminary preparation for a change in power dynamics. This new strategic understanding between Rabi Lamichhane and Swarnim Wagle appears almost certain to cause a major stir in Nepali politics in the near future.
