Prime Minister Balendra (Balen) Shah seems to be facing a critical credibility and governance crisis that political analysts, opponents, and even members of his own party describe as a significant loss of grip on his administration. Just over four months after sweeping into office on a wave of Gen Z-driven political optimism, his reformist image is under dubious stage due to multiple overlapping crises.
A deep political rift seems to be widening as claimed by gossipers between PM Balen and Rabi Lamichhane, the chairman of his ruling Rastriya Swatantra Party (RSP). The power tussle was brought into sharp public view on Friday night (August 7, 2026), when Balen posted a cryptic status on Facebook stating, "Sometimes one has to fight alone, this is not the first time." This status and a six-hour marathon meeting between Rabi and Balen held has added fuel to the gossipers rumouring about internal party non-cooperation and systemic gridlock which, however, seemed to be nothing but to try and outline a framework for political survival.
Constitutional experts and political analysts have heavily criticized Balen’s governing style. He has been accused of sidelining parliament by avoiding legislative sessions, failing to answer queries on fiscal policy and programmes, and relying heavily on emergency ordinances rather than passing through House of Representative (HoR).
Despite the widespread public dissatisfaction, Balen maintains a highly defiant stance. He recently rejected criticisms that his administration needs to slow down or apply "brakes," asserting that his government is moving on an "expressway" toward systemic state reform—citing the financial revival of long-closed state industries like Nepal Drugs Limited and Hetauda Textile Industry as proof of execution. However, with increasing streets protests and courts reversing his executive bans, the structural grip he holds on his government remains deeply fragile.
It remains to be seen in the coming days whether his government will be successful in meeting the high expectations of RSP million voters.

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