Nepal’s private sector has said that the violent GenZ protests of Sept 8 and 9, which left government offices and private establishments vandalized and torched, have inflicted losses running into billions of rupees, setting the economy back by years.
Speaking at a discussion organized Tuesday by the Nepal Economic Journalists’ Association on the theme “The Road Ahead for Economic Recovery,” business leaders said the destruction has undermined investor confidence, shaken the foundations of industries, and halted incoming investments.
Confederation of Nepalese Industries (CNI) president Birendra Raj Pandey estimated that the protests cost the economy around five percent of gross domestic product (GDP). “For investors, security of capital is fundamental. But the violent destruction of public and private structures has eroded confidence. The government must now step in with supportive fiscal and monetary policies to help businesses recover,” Pandey said.
He urged the government to design both short- and long-term recovery strategies, including special facilities for large industries. He also highlighted the need for reforms in education and improvements to laws that remain complicated and difficult to implement. According to him, the unrest has already stalled major joint-venture investments that were in the pipeline.
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) vice president Hemraj Dhakal described the protests as a “massive setback.” The destruction of large public and private infrastructures, he said, has crippled the economy. “We are ready to rise from the ashes, but what is the guarantee that such destruction won’t happen again? The government must provide a security guarantee,” Dhakal said.
Former president of Nepal Chamber of Commerce Rajendra Malla said the unrest has created an atmosphere of fear across the business community. He stressed that peace and security must be the government’s immediate priority and urged authorities to assure entrepreneurs that they need not fear operating in Nepal.
Malla also called for policies that would encourage youth to stay and work in Nepal rather than leaving for foreign employment. He identified startups, IT, artificial intelligence, and rural technology programs as areas where the government could foster growth. “Tourism has taken a severe hit, but Nepal can still brand itself as a safe destination if the government acts quickly,” he added.
Business leaders further warned that widespread informal transactions and the misuse of remittances have aggravated Nepal’s economic vulnerabilities. Unless structural reforms and effective utilization of resources are ensured, they cautioned, the country risks being pushed five to six years behind its development trajectory.
