Private sector calls for urgent measures for reform, recovery

By A Staff Reporter,Kathmandu, Sept. 24: The nationwide ‘Gen Z’ movement, hailed as a bold youth-led movement against corruption and misgovernance, has also inflicted widespread damage to public and private property, dealing a serious blow to the national economy.

Speaking at an interaction on ‘evolving political and economic crisis’ organised by the Nepal Forum of Economic Journalists (NAFIJ) in the Capital on Tuesday, experts, government officials, and private sector representatives called for urgent measures for recovery and reform. They expressed deep concern over the protest’s economic aftermath. 

Birendra Raj Pandey, President of the Confederation of Nepalese Industries (CNI), estimated a 5 per cent loss to the Gross Domestic Product (GDP) while major foreign joint ventures have been halted due to instability. 

Former President of Nepal Chamber of Commerce, Rajendra Malla, and Vice-President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Hemraj Dhakal noted that the scale of destruction has shaken investor confidence, calling for government guarantees on future security.

Likewise, senior Vice President of NCC, Deepak Malhotra, stated that the damages have set the country back by at least five to six years, adding that businesses now feel unprotected despite paying taxes. The protest is estimated to have caused losses worth Rs. 240 billion, equivalent to about 4–5 per cent of Nepal’s GDP.

Insurance claims have already hit a record Rs. 22.25 billion, according to Virendra Baidwar Chhetri, President of the Nepal Insurance Association, with total private sector losses likely exceeding Rs. 80 billion. 

The speakers said that deeper frustrations were the reason behind the movement, while systemic inefficiencies and lack of employment opportunities for Nepal's youth have further depressed today’s youth. 

Manish Shrestha, President of CNI Youth Forum, warned that if bureaucratic barriers and petty corruption are not addressed, youth outmigration will intensify. “Ask any classroom today—90 to 95 per cent of students want to leave the country,” he said.

Sagar Pandey, President of the Trekking Agencies’ Association of Nepal (TAAN), said that BHM graduates are forced to take jobs worth Rs. 17,000 a month which has forced the technically skilled manpower to search for employment opportunities abroad. According to him, without structural reforms and accountability, economic revival will remain elusive.

Ram Prasad Ghimire, Secretary at the Ministry of Industry, Commerce and Supplies (MoICS), stressed that the new interim government must prioritise transparency, opportunity, and good governance, even through ordinances if necessary. 

Likewise, Finance Ministry spokesperson Tanka Prasad Pandey outlined a plan involving stimulus packages, investment protection, and support for affected businesses. “The government and private sector are partners in economic development. The Finance Ministry is working on a package to send a message on investment protection, concession, relief and good governance,” he said. 

Experts also called for loan restructuring, reduced interest rates, and policy support for youth-led start-ups. Suggestions included mandatory insurance for government assets, part-time job schemes for students, and tax exemptions for damaged infrastructure.

Despite the turmoil, Nepal’s economic indicators remain stable, said Sushil Gyewali, CEO of the Investment Board. Drawing parallels with Sri Lanka’s crisis, he asserted that Nepal still has a window for recovery, if trust is restored and reforms are delivered.