Rebuilding Business Confidence to Revive Economy
myrepublica.nagariknetwork.com · Wed Nov 12 00:15:00 GMT 2025

Nepal’s economy has been reeling under pressure following the September 8-9 Gen Z protests, which appear to have hit business confidence hard. Despite enough loanable funds, lending has slowed and the morale of the private sector has gone to rock bottom. What is more irksome is that nearly Rs 1.1 trillion remains idle in banks. The Gen Z demonstrations seem to have made investors shaky, as many are either unwilling or hesitant to pump in capital into existing or new businesses. The World Bank’s recent reports have not been consoling either- it has projected only 3.1 percent growth this fiscal year, which is a sharp drop from the earlier estimate of 5.2 percent. This too showed that the unrest and instability have left a blow to our economy. Since entrepreneurs make investments through loans, adjustments and savings, if they are attacked and homes, hotels, industries and offices are targeted, then the economy will suffer heavily. In our nation, the private sector has accounted for 81 percent of Nepal’s economy and provided 86 percent of employment. The sector has contributed over 80 percent of income tax. The private sector has lost around Rs 88 billion. It is obvious now that when the national economy’s backbone is hit badly, it will leave revenue and jobs in tatters. Both local and foreign investors in Nepal became doubtful of the nation’s investment environment following severe attacks on businesses, multinational companies and five-star hotels.
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