Nepal’s newly elected Prime Minister, Balendra Shah, sparked controversy on Sunday by raising the border dispute with India in Parliament.
Formally addressing Parliament for the first time since coming to power, Shah claimed that Nepal has also encroached on Indian territory, a stance quite different from the one taken by the traditional political players, whom he replaced this year.
Nepal’s old guards, the Nepali Congress and the Communist parties, always accused India of occupying Nepal’s territory in the long-running dispute.
Addressing the forum, Shah said, “You will be surprised to know a fact that I have learned recently, only after becoming prime minister: Not only has India encroached Nepali territory, but Nepal has also encroached Indian territory in many places.”
Shah suggested that lawmakers have reached out to China and the United Kingdom for a resolution of the dispute.
What is the dispute?
The dispute revolves around a patch of land to the west of Nepal encompassing the territories of Limpiyadhura, Lipulekh, and Kalapani.
The genesis of the border dispute dates back to the 1816 Treaty of Sugauli, between British India and the Kingdom of Nepal, which defined Nepal’s western boundary along the Kali River. The document, however, did not specify the river’s exact source.
Nepal argues that the Kali originates at Limpiyadhura, while India maintains that the river begins near Lipulekh, citing historical administrative records to support the claim.
The disputed land lies between these competing interpretations of the boundary. After the 1962 war with China, India has been deploying troops in the Kalapani.
The dispute resurfaced in May 2020 when India inaugurated an 80-km road to the Lipulekh Pass for the Kailash Mansarovar pilgrimage. In 2026, the pilgrimage resumed after being suspended owing to the COVID-19 pandemic. Nepal’s Foreign Ministry reiterated that the territories of Limpiyadhura, Lipulekh, and Kalapani are part of Nepal.
Response to Shah’s comments
In response to Shah’s comments, Nepal’s Foreign Ministry said both Nepal and India “have expressed their commitment to resolving border‑related disputes through diplomatic channels and mutual dialogue” on the Lipulekh Pass.
India’s foreign ministry spokesperson Randhir Jaiswal rejected third-party intervention in the dispute.
Shah’s statement came a day before his party’s chief, Rabi Lamichhane, began his five-day visit to India (June 1 – June 5). The Rastriya Swatantra Party (RSP) chairman was invited by the Bharatiya Janata Party (BJP) to strengthen dialogue and India-Nepal ties.
II. US-Iran ceasefire extension
The ostensible last leg of the US-Iran talks has dragged on till this Saturday on account of Israel’s ongoing war with Hezbollah in Lebanon.
Tehran and Washington were seemingly at the cusp of an agreement to extend their ceasefire by another 60 days earlier this week when Iranians reportedly began to back out owing to Israeli forces making rapid advances in southern Lebanon, capturing swathes of land north of the Litani River.
Following the reports, Iran’s Revolutionary Guard also threatened this week to close the Bab el-Mandeb Strait, a vital waterway previously targeted by its ally, the Houthis, in Yemen. Tehran has maintained that a cessation of hostilities in Lebanon was necessary for any ceasefire agreement, even as the Lebanese government expressed its frustration over Iran using the country as a bargaining chip.
What followed the impasse with Tehran was a heated telephonic exchange between Prime Minister Benjamin Netanyahu and US President Donald Trump, during which the latter pressured Tel Aviv to hit the brakes on its operation, Axios reported.
After the call, Lebanon on Tuesday issued a statement saying that Hezbollah, with whom Trump had been holding talks as well, has agreed to a US-proposed plan involving “mutual cessation of attacks” with Israel. According to the country’s embassy in Washington, the Iran-backed group agreed to halt attacks in exchange for Israel refraining from launching strikes in Beirut.
Benjamin Netanyahu said that Israel would not attack the Lebanese capital but warned that “if Hezbollah does not cease attacking our cities and citizens – Israel will attack terror targets in Beirut.”
‘Pilot zones’ in Lebanon
In parallel to these developments, Israel and Lebanon held the fourth round of US-mediated talks at the US State Department. On Wednesday, both sides agreed to introduce “pilot” security zones inside Lebanon from where Hezbollah militants would be banned.
They issued a joint statement saying that the Lebanese Armed Forces “will take exclusive control of the territory to the exclusion of all non-state actors.”
While mentioning the security framework, the statement said that “all countries reaffirmed that the future of the relationship between Israel and Lebanon must be decided by the two sovereign governments.”
“They rejected any attempt, by any state or non-state actor, to hold Lebanon’s future hostage,” it added.
Despite this framework, Israel has been carrying out its campaign in southern Lebanon – a region from where Hezbollah has been launching attacks on Israeli cities and settlements.
This is to no one’s surprise, since Netanyahu said that “the IDF will continue to operate as planned in southern Lebanon” while confirming the truce with Hezbollah. Israeli and Lebanese delegations are scheduled to meet again on June 22.
Distance between Tel Aviv and Washington grows
Days before the tense exchange between Trump and Netanyahu, the New York Times reported that the distance between Washington and Tel Aviv has grown, with Israeli officials being kept out of the loop in the peace talks between US and Iranian officials as both sides set the conditions for a deal.
Citing US officials, the media outlet reported that Trump had viewed Netanyahu as a war ally, but not as a close partner when it came to negotiating with Tehran, as their priorities appeared to diverge over time.
The White House has been more focused on ending the war as global oil prices surge owing to the closure of the Strait of Hormuz, and the US mid-term elections are scheduled to take place in November this year.
In the initial weeks of the war, Tel Aviv and Washington were on the same page, although their goals seemed to oscillate between regime change and neutralizing Iran’s nuclear capability and the ballistic missiles programme.
Indian national killed in Kuwait
Momentary flare-ups between the US military and the IRGC have continued as well, with both trading blows in the Gulf and international waters near the Strait of Hormuz.
After the US targeted an Iran-linked vessel evading Trump’s naval blockade on Hormuz on Wednesday, Iran launched strikes at Kuwait’s international airport, killing one Indian national. Flights were suspended after the event.
III. Trump admin proposes tariffs on 60 countries
The Trump administration Tuesday proposed imposing additional duties of 10 per cent or 12.5 per cent on imports from 60 countries, including India, for failing to “impose and effectively enforce a prohibition on the importation of goods produced with forced labor.”
Following an investigation, the United States Trade Representative (USTR) suggested imposing 10 per cent tariffs on imports from six economies:
The other 54 countries could be slapped with 12.5 per cent duties over their ‘failure’ to impose and effectively enforce prohibitions:
Section 301 of the US Trade Act of 1974 allows the USTR to investigate and take action against unfair trade practices. But the federal agency must complete an investigation within 12 months.
In May, the Republican administration faced another setback after the US Court of International Trade scrapped the 10 per cent tariffs imposed under Section 122 of the Trade Act of 1974 that Trump introduced following the verdict on IEEPA duties.
On Tuesday’s notification, the USTR labelled the alleged labour practices of the countries as “unreasonable”. Unlike the Section 122 duties, Section 301 offers the US government the ability to adjust tariffs, country-by-country.
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Nepal’s Prime Minister Balendra Shah. (File Photo, enhanced using AI) 
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