Kathmandu is bracing for pro and anti-monarchy gatherings on Thursday, the scale of which could determine the politics of the Himalayan country which has remained unstable ever since the 240-year-old monarchy was abolished in 2008.

Durga Kumar Prasai, a 52-year-old controversial businessman from Birtamod in the Jhapa district of Nepal, is leading the charge for the restoration of the monarchy and Hinduism as the state religion.

Prasai — who was once close to both Maoist leader and Nepal’s current prime minister Pushpa Kamal Dahal (Prachanda) and main Opposition leader K.P. Oli of the Communist Party of Nepal (Unified Marxist-Leninist) or CPN (UML) — also called for a slash in the interest rates of cooperatives and micro finances in the country.

Prasai, who was on the central committee of the CPN (UML) for a short period, has called for people from across Nepal to converge in Kathmandu to support his “Rastra, Rastriyata, Dharma-Sanskriti and Nagarik Bachau Andolan” (citizen’s movement for the protection of nation, nationalism, religion and culture).

“I am looking to bring about a change in the country,” said Prasai while addressing his supporters.

The Hindu monarchy was abolished and Nepal was declared a secular republic in 2008.

Pro-monarchy rallies have been taking place in Nepal since 2020 but they have not really shaken the political eco-system of the nation.

“This time, both the government and the Opposition party led by K.P. Oli surprisingly overreacted,” a Kathmandu resident said over the phone.

Prasai had initially planned to stage his protest at Maitighar Mandala, a symbolic structure in the middle of Kathmandu.

Immediately after Prasai's announcement, Yuwa Sangh, an organisation affiliated to the CPN (UML), said it would hold a demonstration against any form of anarchy, corruption and price rise and to promote caste harmony on the same day and at the same venue as decided by Prasai.

Since Monday, the Kathmandu District Administration and Lalitpur District Administration started imposing prohibitory orders in certain parts of Kathmandu for periods ranging from three to six months.

The government said the prohibitory orders were to avoid clashes in Kathmandu between the two groups on Thursday. The administration has also asked Prasai's people to hold their event at Balkhu and directed the UML supporters to stage their protest at Tinkune. The two places are around 5km apart.

Kathmandu residents have been advised against unnecessary travel in certain parts of the city on Thursday.

Prasai's support base is largely confined to the Jhapa district, situated around 430km east of Kathmandu. “Despite his support base being confined to Jhapa, the reaction of the government and the Opposition party is surprising. They somehow seem anxious,” said a resident.

Prasai is mobilising support largely through social media. The Nepal government banned the social media app TikTok on November 13, terming its content detrimental to social harmony. The ban, however, has been challenged in the court.

The Nepal government also wants other social media apps to open liaison offices in Kathmandu.

“Even though I don’t think it will bring about an immediate change in Nepal politics, tomorrow’s (Thursday) events could bring to the fore the debate on monarchy and change in the political system in the country,” said Kathmandu-based journalist Raju Lama.

Political instability is nothing new in Nepal. Ever since the monarchy was abolished in 2008, the country has seen 11 governments to date. The developments in Nepal are closely monitored both by India and China as the Himalayan country is a buffer state between the two giant neighbours.

“Also, the fact that fresh apolitical faces like Balen Shah (who was elected mayor of Kathmandu), Harka Sampang (newly elected mayor of Dharan) and even Rabi Lamichaney (journalist turned politician) are finding acceptance among the general public is perhaps an indication that many people are slowly losing faith on the old leaders of the country,” said an observer.

Many people opposed to Prasai, however, questioned the businessman’s support for the monarchy.

“He has taken a lot of loans to expand his business and this is why he is talking of lowering interest rates and trying to bring out a new political system in the country for his personal interest,” a member of the anti-Prasai group said.

Prasai has rejected the allegations. “I have a business worth Rs 5,000 crore and this is why I was granted a loan to the tune of Rs 500 crore,” said Prasai.

Prasai is also an executive director of Jhapa-based B&C Medical College Teaching Hospital and Research Center Pvt Ltd. Many alleged that the government’s refusal to grant him a licence to start a new wing of the hospital on grounds of lack of proper infrastructure made him turn against the present political parties, a charge denied by the businessman.