Who will steer finance and foreign policy in an RSP-led govt?

KATHMANDU, March 18: As the Rastriya Swatantra Party (RSP) moves closer to forming the next government, attention is steadily shifting from electoral triumph to the architecture of power—particularly who will helm key ministries shaping Nepal’s economic and diplomatic course.

Sources within the party indicate that two crucial portfolios—Finance and Foreign Affairs—have largely been settled through an understanding between party Chair Rabi Lamichhane and senior leader and prime ministerial frontrunner Balendra Shah, widely known as Balen. If the current consensus holds, economist Swarnim Wagle is set to take charge of the Finance Ministry, while Shishir Khanal is poised to lead the Ministry of Foreign Affairs.

The apparent choices signal a broader shift in the party’s governing philosophy. Balen is said to be pushing for a cabinet built on competence and domain expertise rather than political seniority alone—a move that aligns with the RSP’s broader promise of technocratic governance and institutional reform.

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Wagle, a respected economist, is expected to bring policy depth at a time when economic stability and investor confidence remain pressing concerns. Khanal, meanwhile, is regarded within party circles as having a nuanced understanding of foreign policy, a critical asset as Nepal navigates an increasingly complex geopolitical landscape.

Yet, while Finance and Foreign Affairs appear close to finalisation, the Home Ministry—arguably the most politically sensitive portfolio—remains under negotiation. Party Vice-Chair DP Aryal has emerged as a contender for the post, while the Balen camp has proposed Sunil Lamsal. The competing recommendations reflect subtle internal balancing within the party’s power structure.

In the absence of consensus, an alternative under consideration is for the prime minister to retain the Home Ministry—a move that would consolidate authority at the centre but could also raise questions about power concentration.

For now, the contours of an RSP-led cabinet are beginning to take shape, offering early insight into how the party intends to translate its electoral mandate into governance. Whether this emphasis on expertise over political accommodation holds across all portfolios, however, remains to be seen.