Nepal’s Private Sector Urges Government to Ensure Fear-Free Environment for Business

Nepal’s private sector has called on the government to create a safe and conducive environment for conducting business and economic activities, citing recent targeted attacks on businesses that have spread fear among investors.

In separate statements, two of Nepal’s largest private sector umbrella organizations—the Confederation of Nepalese Industries (CNI) and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI)—expressed serious concern over increasing attacks on industries and businesspersons. They reported widespread vandalism, looting, and destruction of property, which have displaced workers and jeopardized investor confidence.

The CNI warned that continued insecurity could lead to increased unemployment and a sharp decline in foreign direct investment (FDI). "The private sector should be allowed to operate without fear. If investors feel unsafe, it will severely affect economic stability and job creation," the statement read.

CNI also emphasized that rebuilding the public and private properties damaged in the attacks will require billions of rupees—resources that the government cannot provide alone. "The private sector is a major source of income for the government, and its support is crucial for reconstruction efforts," it added.

The FNCCI echoed similar concerns, highlighting that the aspirations of the younger generation—such as dignified employment, self-employment opportunities, and effective use of tax revenues—should be addressed urgently. The organization called on the government, political parties, and stakeholders to exercise restraint and engage in dialogue to revive economic momentum.

“In this peak tourism season, we must send a positive message to the international community,” FNCCI stated.

The statements follow the September 9 attacks on several private businesses, including luxury hotels, car showrooms, and departmental stores. Over two dozen hotels were vandalized, with total damages reportedly exceeding Rs 25 billion.