Hundreds of thousands of common people across the country faced hardships for the second day on Tuesday, as the government and the National Federation of Nepal Transport Entrepreneurs, which called a public transport strike, remained unfazed by commuters’ plight.

They called off the strike later on Tuesday evening.

The halt in public transportation hit hard the ailing people, office-goers, college students, caregivers, and others travelling for various purposes.

“Criminal groups of the transport entrepreneurs have been encouraged by the incumbent government and continue their activities,” said Bishnu Prasad Timalsina, general secretary of the Forum for Protection of Consumer Rights-Nepal. “Instead of acting tough on such groups, this government has surrendered to their illegitimate demands, ignoring the rights of consumers and the order of the Supreme Court.”

Representatives from the federal government and transport entrepreneurs reached an agreement on Monday night to write to the Gandaki provincial government to withhold the enforcement of the regulations brought to regulate ride-hailing and self-driving services, and call off the strike on public transportation.

Despite the agreement, public transport operators continued their strike, which affected hundreds of thousands of people from across the country. Though they enforced a nationwide transport strike from Monday, they had halted their services in Pokhara from Friday itself. Vehicular movement and regular life was crippled not only in Kaski but also in neighbouring districts due to the strike in the regional hub.

They have launched a series of protest programmes against the Gandaki provincial government’s decision to introduce rules to regulate ride-hailing under a legal framework.

The Gandaki provincial government introduced the ride-hailing regulations 2025 on May 15, while Bagmati Province is reviewing a draft regulation to bring the services under provincial oversight and taxation.

The provincial governments’ move was in line with multiple directives from the Supreme Court, which has directed the federal and provincial authorities to regulate ride-hailing and self-driving services.

The Essential Service Operation Act-1957 also strictly prohibits strikes on various essential services, including public transport.

Consumer rights activists alleged that instead of amending, revising, and updating the Act on behalf of the general public, the incumbent government has been working to appease ‘criminal groups’.

“This group has challenged not only the government but also the country’s law,” said Timalsina. “The authorities should have arrested members of this group and confiscated their properties using rights given by the Essential Services Operation Act. When the government forgets its duty, the general public suffers.”

By agreeing to meet the group’s illegitimate demands openly promoting syndicates and monopolies in public transport sectors, the federal government has also infringed on the rights of provincial governments, rights activists said.

“We have signed an agreement to resume public transportation service, but before calling off our strike, the Gandaki Province government must withhold the decision to enforce right-hailing regulation,” Saroj Sitaula, senior vice chairman of the National Federation of Nepal Transport Entrepreneurs, said prior to calling off the strike. “We hope concerned governments are serious about the people’s plight and implement the agreements reached with us.”

When asked what if the provincial government did not roll back the regulation, as it cannot be forced as per the spirit of federalism, Sitaula said that the concerned governments will have to take the responsibilities for the consequences.

“Our entrepreneur friends in Gandaki Province will hand over the keys of vehicles to the government,” Sitaula warned. “We will not resume services in other places either.”

Transport entrepreneurs said they are against the provision allowing vehicles registered for private use to operate for hire or carry passengers.

Despite concerns from consumer rights activists, transport policy experts and other stakeholders, both the federal and Gandaki provincial governments have surrendered to their demands.

The Gandaki provincial government on Tuesday evening decided to suspend the implementation of its new ride-hailing regulation for a month, following a formal request from the federal government.

The decision came after a joint meeting on Tuesday involving Chief Minister Surendra Raj Pandey, provincial ministers, and the negotiation committee.

Gandaki Minister for Economic Affairs Takaraj Gurung said the regulation—titled Ride-Hailing (Regulation and Management) Guidelines, 2025—will remain on hold for a month, during which further talks will be held with the transport sector to address their concerns.

Gurung confirmed that transport operators will be invited for dialogue for a third time, signalling the provincial government’s intent to seek a negotiated solution before enforcing the guidelines.

Earlier in the afternoon, the Office of the Prime Minister and Council of Ministers formally requested the Gandaki provincial government to temporarily suspend the newly introduced regulation, as transport strikes triggered by the policy continue to disrupt life across the country.

The letter sent to the Office of the Chief Minister of Gandaki Province cited the difficulties faced by the public due to the indefinite halt in services imposed by transport entrepreneurs’ associations.

The Prime Minister’s Office urged provincial authorities to suspend enforcement of the regulation as per a ministerial-level decision aimed at restoring normalcy.

“In view of the ongoing public transport strike and the hardship it has caused to citizens, the government has decided to request provincial governments, including Gandaki, to hold off on implementing the ride-hailing provisions for the time being,” the letter reads.

As of Tuesday evening, Gandaki provincial officials were busy in internal discussions and were expected to make their announcement following a Cabinet meeting of the provincial government.

(With inputs from Dipak Pariyar and Anup Paudel in Pokhara)