Nepal’s Economy Faces Growing Risks After GenZ Protests; Private Sector Seeks Stability and State Assurance

Nepal’s already fragile economy has begun to show deeper fault lines in the aftermath of the GenZ movement, with private-sector leaders warning that the environment for investment has turned increasingly uncertain. Foreign investors, who had been gradually exploring opportunities in Nepal, now appear hesitant, signalling that it may take significant time before confidence is restored. At the domestic level, businesses say the government must step forward with clear support, protection and a credible roadmap to safeguard economic stability.

Although remittance continues to be the main pillar holding Nepal’s economy, the private sector is struggling to recover from the shockwaves created by the protests. Several enterprises suffered sudden and severe destruction during the unrest, leaving many investors disillusioned and fearful about the future. Business owners say millions worth of assets turned to ashes within minutes, raising questions about Nepal’s capacity to ensure a safe investment environment.

For entrepreneurs who had poured large capital into long-term projects expecting steady returns, the recent violence has acted as a devastating setback. Many say they are now hesitant to reinvest unless the state can guarantee security and predictability. According to private-sector leaders, an economy cannot thrive if the business community is repeatedly pushed to the sidelines. Without restoring trust, they argue, the government cannot expect sustainable growth.

There is also growing frustration about Nepal’s political instability, which business leaders claim has been a major obstacle for decades. The private sector argues that economic issues must be placed above partisan interests, insisting that policies should remain consistent regardless of political shifts. Many have expressed concern that businesses are being forced to bear the cost of political turmoil, an issue they say is long overdue for serious reform.

Nepal Chamber of Commerce President Kamlesh Agrawal described the current situation as an “economic transition phase,” warning that the indicators point toward a looming crisis. He stressed the need for decisive government intervention to restore business confidence and prevent further deterioration. According to him, unless the state acknowledges the severity of the situation and acts swiftly, Nepal may face prolonged economic stagnation.

Responding to the concerns raised by business owners, Investment Board Nepal CEO Sushil Gyawali admitted that the country lacks the stability required for predictable investment flows. His acknowledgment reflects a broader reality: Nepal’s economic vulnerabilities existed long before the GenZ movement, but the recent unrest has intensified them, leaving investors—both domestic and foreign—more cautious than ever.

Experts say Nepal must treat the current period as a wake-up call. Opportunities often emerge during crises, but only when governments take responsibility, guarantee security, and encourage innovation. In the face of rising uncertainty, Nepal’s priority now must be to protect investors, rebuild trust, and shape a stable policy environment that encourages long-term economic development.