Kathmandu: Sweeping into office on a wave of generational discontent that marks a sharp break from mainstream politics, Nepal’s youngest prime minister, 35-year-old Balendra Shah, has aggressively signalled a new order in his first week. Shah has arrested former prime minister K.P. Sharma Oli and former home minister Ramesh Lekhak, and opened money laundering investigations into three former prime ministers.Shah’s Rastriya Swatantra Party emerged from the March 5 elections as the largest party with 182 seats in the 275-member house, significantly weakening the traditional parties. The RSP had fought the election on a platform of accountability, good governance, the fight against corruption and job creation, riding the political vacuum left by the Gen Z uprising of September 2025, in which at least 76 people were killed across two days of unrest.Sworn in on March 27, Shah convened his first cabinet meeting that same evening and moved to implement the report of the probe commission formed to investigate the September 8-9 violence. The commission, chaired by former Special Court judge Gauri Bahadur Karki and set up by the preceding interim government under Sushila Karki, had recommended criminal charges against Oli and Lekhak under Sections 181 and 182 of the National Penal Code for criminal negligence causing death.The government decided to immediately act on the political findings of the report, while setting up a study panel before taking action against security officials and bureaucrats.The following morning, Nepal Police arrested Oli and Lekhak. The Kathmandu District Court approved a five-day judicial remand for both. Oli was transferred to Tribhuvan University Teaching Hospital on health grounds, where police have been recording his statement. The court has since extended his detention by two additional days.The Communist Party of Nepal (Unified Marxist–Leninist) swiftly called the arrests politically motivated and announced a programme of street protests, with more programmes planned in the coming weeks. The legal fraternity said due process was not followed in the early-morning operation. The Nepali Congress, whose senior leader Lekhak served as home minister in Oli’s coalition government, demanded a fair and impartial investigation. The Nepali Communist Party echoed that call.The government itself faces a charge of selectivity – acting on September 8, when security forces killed protesters, while setting aside the destruction of September 9, when vital state institutions including the Supreme Court, the parliament building and Singhadurbar were burnt down. The cabinet has pledged to form a new panel to investigate the September 9 incidents.Anti-corruption driveThe push for accountability has also widened into a broader anti-corruption drive.Government agencies have reopened corruption cases, including investigations into former prime ministers K.P. Sharma Oli, Pushpa Kamal Dahal and Sher Bahadur Deuba in connection with a money laundering case. Deepak Khadka, energy minister in the Oli-led government, has also been arrested in the same case. Authorities say dozens of cases are being reopened, and the government has decided to form high-level committees to investigate the properties of public service holders after 1990.The crackdown extends beyond political figures. Police have arrested several individuals and businessmen in connection with money laundering cases, while also carrying out a wider law enforcement sweep targeting criminal activity. In one such operation, 195 individuals were arrested from various parts of Kathmandu in an overnight drive against hooliganism, vandalism and fraud. These moves come as Nepal faces sustained international pressure to act on financial crimes. The country remains on the grey list of the Financial Action Task Force, which has cited persistent deficiencies in its anti-money laundering and counter-terrorist financing regime.Alongside these measures, the government has announced a 10-day, 100-task plan focused on administrative reform, service delivery and digital governance, though details remain limited.Pressures on the economic frontDespite the early focus on accountability and corruption, the government faces pressure on the economic front. Rising energy costs have pushed up inflation, while there are growing demands for measures to address the impact. The administration is also dealing with calls to assist Nepali workers in West Asia seeking to return amid the prolonged conflict in the region.At the same time, the government has sought to reassure the private sector, which was shaken by the violence on September 8 and 9, when several business establishments were targeted. Finance minister Swarnim Wagle has said the administration is ready to work with the private sector, and is looking to improve conditions for international investors through bureaucratic and legal reforms.The government has yet to clearly outline its foreign policy priorities. While international leaders extended congratulations following Shah’s swearing-in, the administration has not spelt out its approach. At a public event on April 4, Foreign minister Shishir Khanal said the government would strengthen international relations based on “non-alignment, sovereignty, territorial integrity and mutual respect”. Leaders of the Rastriya Swatantra Party have indicated there will be no major departure in foreign policy.