The private sector accounts for more than 80 percent of the national economy, according to the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).  According to the apex body of the Nepali private sector, the number of private sector establishments surged from 28,600 in 1983 to 923,356 in 2018.

This growth accelerated after Nepal adopted liberal economic policies and embraced privatization in the early 1990s. The 1990 constitution, one of South Asia’s most progressive charters at that time, created an enabling environment for private sector investment, including in the media industry. In the years that followed, the private sector boomed which strengthened the economic health of private media houses. From the late 1990s through 2015, many media houses thrived financially, fueled largely by advertising from both the private sector and government. However, some also collapsed due to economic instability.

During the Maoist insurgency and the transition to the 2015 constitution, donor funding became another key source of income for Nepali media. Many outlets received substantial support to produce content aligned with the interests and agendas of international donors. In recent years, however, such funding has come under criticism, with concerns that it influenced politics and public policy in problematic ways. These funds are now in decline, leading to the shutdown of many legacy media outlets, particularly private and community radio stations that had played a critical role in informing and empowering rural communities. 

Following the promulgation of the new Constitution in 2015, and even before that, many donor organizations began shifting their focus to other regions, particularly in Africa and other conflicted-hit areas. In response, the Biden administration allocated support for independent media, including Nepal. But with the return of Donald Trump to the US presidency and the subsequent dismantling of USAID programs, media outlets that depended on American funding are now facing a deepening crisis. Across Asia and Africa, dozens of USAID-funded media organizations are on the brink of collapse. In Nepal too, media revenues from advertising are falling and international support is drying up.

Given this context, the time has come for Nepal’s private sector to step in, not as an act of charity, but as a commitment to safeguarding democracy. The private sector bears a huge responsibility that goes beyond profit-making. While some business houses with political connections may continue to benefit in the short term, a truly strong and sustainable private sector can only flourish in a democratic environment.

Around the world, there are examples of the private sector and middle class investing in the independent media to counter partisan journalism and to support civil society movements.

In their recent opinion piece, prominent scholars Semuhi Sinanoglu, Lucan Way and Steven Levitsky argue that a healthy private sector and a strong middle class form the backbone of a robust independent media. They have cited the example of Malaysia’s popular newspaper Malaysiakini, which, supported by the private sector and a growing urban middle class, broke the political monopoly over the media landscape.  They also highlighted several other cases where the private sector has stepped in to support independent journalism, ultimately contributing to the strengthening of democracy.

According to a 2023 study by Center for International Media Assistance, case studies in Czechia, Romania and Serbia show that the private sector can and does play a meaningful role in protecting information integrity.  While most of these efforts are modest in scale, they demonstrate the potential for private sector engagement in addressing information disorder and the wider challenges facing independent media in the region, the study states.  

In India, too, the private sector has backed some independent media platforms practicing free and fair journalism. For instance, individual investors have supported ‘The Print’, an online portal led by veteran journalist Shekhar Gupta. The portal has publicly disclosed the names of its backers.

In Nepal, however, beyond advertisement, there have been few initiatives where the private sector has provided direct funding to independent media houses, enabling them to report without business or political interference. One exception, though still debated, is Ukaalo.Com, which focuses on investigative reporting. Since its launch, questions have been raised about its funding model and sources. While the outlet positions itself as a not-for-profit entity and maintains no affiliation with political or corporate groups, there is speculation that Buddha Air provided seed funding, along with other private sector individuals. However, the media house has not made its funding details public, limiting open discussion on the issue. 

There are no major initiatives in Nepal where the private sector is supporting independent journalism for the sake of strengthening democratic discourse. The issue is not about private media houses funding outlets to serve their own business interests. Rather, it is about the private sector contributing to media that can produce genuinely independent content, countering politically and commercially influenced narratives, and tackling misinformation and disinformation.

This is undoubtedly a difficult period for Nepal’s private sector. But some business houses have seen remarkable growth and are in a position to provide seed funding for new independent media ventures. The middle-class could also step in to support such initiatives.

Now, more than ever, the private sector is becoming the victims of misinformation and disinformation. In private conversations, top business leaders have expressed concern that they are being targeted by false or misleading narratives, often amplified by certain media outlets. The most effective way to counter this is through investment in independent media for fact-checking initiatives. 

Major media organizations throughout the world have begun creating dedicated departments to counter misinformation and disinformation. In Nepal, however, effective efforts on this front are lacking. The private sector should consider investing in this area, as information integrity is vital for the business to grow.

However, the private sector is hesitant to openly support independent journalism. Many fear backlash from political parties or the government. Even those few business leaders, who have recognized the importance of independent media, choose to remain silent out of fear that any critical reporting on those in power could result in retaliation under various pretexts.

Compounding the issue is the lack of trust and communication between independent media outlets and business houses. Many business leaders feel that their issues are not adequately represented in the mainstream media. One top businessman recently told me that the media only reached out for collaboration after a crisis had already hit. This means, there is a clear need for more dialogue and consultations between independent media houses and the private sector. 

At the same time, it is important to acknowledge that the private sector has not turned its back on independent media entirely. Despite the challenges, some businesses are still providing financial support. They deserve credit for recognizing the role of independent journalism in upholding democracy.

The private sector must fully understand why independent media is essential to democratic governance and why a healthy democracy is, in turn, necessary for sustainable private sector growth. There has been little public discussion about the private sector’s role in strengthening civil society and supporting free and fair journalism. If the private sector wants unbiased, balanced and trustworthy information in the public domain, now is the time to invest in independent media that can operate freely and fearlessly without political or corporate interference.