Restoring Confidence

It's been nearly four months since the Gen-Z movement tore through Nepal. What began as a peaceful protest against rampant corruption and social media ban quickly spiralled into a nationwide movement, unleashing the most destructive 48-hour rampage in the nation's history. Bearing the brunt of the violence was the private sector, which saw many of its businesses reduced to ashes or their structures severely vandalised. The devastation was so shocking that some of them are still struggling to come to terms with it.

Many continue to wonder why the sector that took immense risks to create tens of thousands of jobs in a country where means of livelihood are hard to come by, to lay the foundation of development, and is a reliable tax base for the government, was targeted. While nearly all of the affected enterprises have picked up the pieces, one overarching worry still lingers in the minds and hearts of their proprietors: What if they have to go through the same trauma again in the future? 

In an effort to restore the sector's confidence, reassure it of the security guarantee, and enact measures and policies that promote and support it to the hilt, an all-stakeholder conference on 'cooperation for peace, stability and prosperity' was organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in Kathmandu on Wednesday.

The conference brought together major stakeholders of business, politics, youth and the government, and the private sector sought a commitment from the government and the leaders of the political parties, as well as the representatives of the Gen-Z alliances, to respect the investors and businesses and build their confidence through various policies and other measures. At the heart of the discussion was the shaken confidence of the investors due to the attacks, while issues of good governance, better public services, and adoption of all-encompassing technology to boost business also got priority.

The private sector leaders voiced their concern in unison that, given the perpetrators of the violence are still going scot-free, they are still apprehensive of further attacks. Indeed, unless the vandals and arsonists are brought to justice, the worry that the enduring culture of impunity continues to undermine the sector's faith is understandable. Its demand for proper compensation for the affected businesses seems an absolute necessity. 

The government, despite inherent limitations owing to its transitional nature, should do all it can to provide the much-needed guarantee to the private sector, support in the recovery of the businesses, access to finance, and removal of hurdles in the business process. The private sector business association's request that the government enact the Private Sector Protection and Promotion Strategy (PSPS) should be met with prompt response. 

When domestic investment grows, so will the foreign investment. Business-friendly laws and policies lay the groundwork for prosperity, for which laws must be powerful enough to ensure the protection of investors. In a good piece of news, the government expressed its unflinching commitment to immediately work to improve the investment climate and support entrepreneurs with favourable policies. 

Prime Minister Sushila Karki's assurance that those involved in the destruction wouldn't be spared and would be brought to justice has raised the hope that justice will finally be served for the sector.  As revealed by Finance Minister Rameshwore Prasad Khanal, the economy is showing unmistakable signs of recovery with excessive liquidity, good forex reserve, low interest rate, and growing market demand. Time could not be more opportune for investors and the private sector to seize and rebuild the business.