Nepal PM Sushila Karki Expands Interim Cabinet, Brings in Key Ministers Amid Crisis

Kathmandu, Sept 2025 : Two days after assuming office as head of Nepal’s interim government, Prime Minister Sushila Karki expanded her Cabinet on Sunday, inducting three new ministers tasked with stabilising the country amid political turmoil and widespread protests.

Former finance secretary Rameshore Khanal has been appointed finance minister, noted lawyer Om Prakash Aryal has been given charge of the Ministry of Home Affairs, and former Nepal Electricity Authority (NEA) executive director Kulman Ghising will head the Ministry of Energy and Irrigation. In addition, Ghising will oversee two other crucial portfolios—Physical Infrastructure and Transport, and Urban Development—making him one of the most influential figures in the new Cabinet.

Preparations are underway for the new ministers to take the oath of office on Monday, according to a senior aide to the prime minister. Karki has reportedly told her inner circle that she intends to keep the Cabinet lean, limited to 15 members during this interim period. “Other ministers will be appointed gradually as consultations are ongoing,” the aide said.

According to those close to her, Karki faced immediate pressure to fill the finance and home ministries to restore confidence, particularly among business leaders and international partners, and to assure the public that the government was capable of addressing the crisis. “That is why she picked people with proven professional integrity,” one of her advisers told The Post.

Aryal, a well-known legal expert, initially preferred to remain outside the Cabinet but agreed to join following negotiations that included President Ramchandra Paudel, Karki, Gen Z representatives, and leaders of major political parties. He had played a key role in those talks, which were aimed at ending last week’s violent protests.

The protests, spearheaded by Gen Z activists, erupted over allegations of entrenched corruption and lack of accountability in governance. In just two days, more than 70 people were killed, while public and private properties worth hundreds of billions were set ablaze across the country. The scale of destruction has intensified calls for urgent reforms and credible leadership.

Khanal, who has long advocated economic reforms, recently submitted a 447-page report to the KP Sharma Oli government in his capacity as chair of the High-Level Economic Reform Recommendation Commission. His appointment is being seen as an effort to provide stability to the financial system and implement long-awaited reforms.

Ghising, widely credited with ending chronic power outages during his tenure at the NEA, is viewed as a pragmatic technocrat. His controversial removal by the Oli government in favor of Hitendra Dev Shakya had drawn sharp criticism from the public. His return to a position of influence is expected to renew momentum in the energy sector and infrastructure development.

Karki began consultations on Cabinet expansion on Saturday evening and finalized the names by Sunday. While Khanal and Ghising were confirmed earlier in the day, Aryal’s acceptance was secured later in the evening. In addition to Home Affairs, Aryal will also oversee the Ministry of Law, Justice and Parliamentary Affairs.

By swiftly appointing respected professionals, Karki is attempting to project stability and restore public trust at a time when Nepal faces one of the most turbulent moments in its recent history.