Boost Investors' Confidence

The Gen Z protest against corruption, unemployment, and unequal allocation of resources escalated into violent protests, leading to arson and vandalism on both public and private property. Several business centres and hotels, including Bhatbhateni supermarkets, Ncell and Hilton, were vandalised and set on fire. This has raised serious concerns about the safety and prospects of foreign investments in Nepal. 

The destruction of public buildings and private business establishments has had negative repercussions for the national economy struggling to come out of the scars left by COVID-19 pandemic. As the private sector is one of the key drivers of the economy, the government must formulate policies and give relief, and come forward with several programmes to make investors feel secure and create an atmosphere conducive to international investors.  

Immediately after the Gen Z movement, the government committed to covering the cost of damage not covered by the insurance companies, rescheduling the tax submission deadlines for private companies, and restructuring loans to help the private sector to sustain in hard times. Time and again, Prime Minister Sushila Karki has assured that the government is firm on protecting the investment of the private sector. 

Sushil Gyewali, Chief Executive Officer of Investment Board Nepal (IBN), a government agency for investment promotion and facilitation, has asserted that his office is working to overcome the negative image caused by the vandalism and damage of businesses as well as private property during the Gen Z movement. IBN approving investment amounting to Rs. 256 billion in the fiscal year 2024/24 was quite encouraging. Likewise, for the current fiscal year, it has set an ambitious target of investing Rs. 700 billion. Likewise, there are currently investment projects worth Rs. 1.6 trillion in the pipeline, which has further increased the optimism among the investors. 

The IBN has endorsed billions of rupees for projects such as the Information Technology Park, hydrogen energy, and agricultural solar projects, which amply show that the investor's morale has not gone down entirely. We all know that the biggest concern for investors is political instability and policy changes. To address these, the board has amended laws to provide guarantees for the protection of investments, which is a significant step in assuring the foreign investors.

At the moment, the international investors are skeptical and are in wait and see mode. The government's affirmative actions and the immediate relief to the private business have gradually increased investors' morale. The government should take credible steps in formulating policies to protect private investments and the government has to translate its commitment into action. 

Despite the private sector bearing huge losses and setbacks, the situation is not as bleak as depicted. With the coordinated efforts of the government, the IBN and other stakeholders, domestic and foreign investors have shown their interest in investing here. Investors invest where there is accountability and transparency, and the interim government formed on the back of Gen Z revolt is striving to maintain good governance and zero tolerance for corruption. Nepal stands on the cusp of drastic political and constitutional reforms aimed at enhancing inclusive economic growth, generating jobs, ending instability and corruption, and achieving prosperity for the people. The Gen Z youths took to the streets, demanding these things to happen. Realising these goals is thus essential to make Nepal a viable destination for domestic and foreign investment.