Private sector urges security, policy stability to restore confidence

In the aftermath of the September protests, the country’s business community warns that investor confidence and the economy cannot recover without security and predictable policies.

At the National Economic Debate 2.0, organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), leaders from the private sector met with senior government officials and financial authorities to discuss the fallout from the unrest, which left public and private property damaged businesses shuttered.

Industry representatives presented a sobering assessment of the economic impact. Preliminary surveys indicate losses of around NRs 88 billion from vandalism, arson, looting, and forced closures. Small and medium enterprises were among the hardest hit, reporting destroyed assets, halted operations, and declining investor confidence.

The private sector emphasised that the business environment had become uncertain and insecure, discouraging both domestic and foreign investment. They presented three key demands to the government. 

• Assurances that their assets, investments, and personnel would be protected, especially during periods of social unrest.
• Need for predictable policies, transparent regulations, and the removal of bureaucratic obstacles that hinder operations. 
• Closer coordination between the government and the private sector to rebuild trust, attract investment, and restore growth momentum.

Representatives also warned that economic confidence cannot return without accountability and tangible government action, cautioning that continued uncertainty and impunity could drive entrepreneurs to scale down operations or relocate their investments.

Government officials acknowledged these concerns and outlined their response.

Prime Minister Sushila Karki emphasised the central role of the private sector in Nepal’s economic prosperity and pledged collaboration to rebuild investor morale. 

Home Minister Om Prakash Aryal confirmed that legal action is being taken against those responsible for arson, looting, and vandalism, and underlined that ensuring business security is now a top priority. 

Finance Minister Rameshwar Prasad Khanal reiterated the business recovery fund initiative the interim government introduced within seven days in office to support affected industries, noting that visible implementation is critical to restoring confidence. He said, “Even though the World Bank has projected economic growth to be limited to 2.1%, the IMF has estimated it at 5.1%, and the government at 4.2%,” he said. “We should not be discouraged.”

Industry and Commerce Minister Anil Kumar Sinha committed to reforming outdated laws that obstruct industrial growth and to creating a more business-friendly regulatory framework. 

Nepal Rastra Bank Governor Prof Dr Biswo Nath Paudel highlighted that foreign exchange reserves and banking liquidity remain strong, providing a foundation for recovery if investor confidence returns.