Punish Arsonists, Vandals to Prevent Capital Flight

Repeated political instability has heightened the risk of capital flight from Nepal. The Gen Z movement on September 8 and the violent incidents that followed on September 9 — including vandalism, arson and attacks on private and public property — have discouraged even those willing to invest domestically. When hotels, industries, businesses and private homes come under attack, investor confidence naturally erodes. In an environment where investments are not secure and assets can be destroyed overnight, entrepreneurial motivation collapses. Former finance ministers have expressed concern over the growing risk of capital flight and urged the government to respond urgently. The Finance Ministers’ Forum recently discussed the issue with incumbent Finance Minister Rameshore Khanal, who as a former finance secretary has long worked to bolster investor sentiment through policy engagement and reform efforts. The recent targeting of private sector establishments in the name of protest has left business owners convinced that meaningful economic activity in Nepal is increasingly untenable.