Kathmandu, Sept. 23
The nationwide ‘Gen Z’ movement, hailed as a bold
youth-led movement against corruption and misgovernance, has also inflicted
widespread damage to public and private property, dealing a serious blow to the
national economy.
Speaking at an interaction on ‘evolving political and
economic crisis’ organised by the Nepal Forum of Economic Journalists (NAFIJ) in
the Capital on Tuesday, experts, government officials, and private sector
representatives called for urgent measures for recovery and reform. They expressed
deep concern over the protest’s economic aftermath.
Birendra Raj Pandey, President of the Confederation of
Nepalese Industries (CNI), estimated a 5 per cent loss to the Gross Domestic
Product (GDP) while major foreign joint ventures have been halted due to
instability.
Former President of Nepal Chamber of Commerce,
Rajendra Malla, and Vice-President of the Federation of Nepalese Chambers of
Commerce and Industry (FNCCI) Hemraj Dhakal noted that the scale of destruction
has shaken investor confidence, calling for government guarantees on future
security.
Likewise, senior Vice President of NCC, Deepak
Malhotra, stated that the damages have set the country back by at least five to
six years, adding that businesses now feel unprotected despite paying taxes.
The protest is estimated to have caused losses worth Rs. 240 billion,
equivalent to about 4–5 per cent of Nepal’s GDP.
Insurance claims have already hit a record Rs. 22.25
billion, according to Virendra Baidwar Chhetri, President of the Nepal Insurance
Association, with total private sector losses likely exceeding Rs. 80 billion.
The speakers said that deeper frustrations were the
reason behind the movement, while systemic inefficiencies and lack of
employment opportunities for Nepal's youth have further depressed today’s youth.
Manish Shrestha, President of CNI Youth Forum, warned
that if bureaucratic barriers and petty corruption are not addressed, youth
outmigration will intensify. “Ask any classroom today—90 to 95 per cent of
students want to leave the country,” he said.
Sagar Pandey, President of the Trekking Agencies’
Association of Nepal (TAAN), said that BHM graduates are forced to take jobs
worth Rs. 17,000 a month which has forced the technically skilled manpower to
search for employment opportunities abroad. According to him, without
structural reforms and accountability, economic revival will remain elusive.
Recovery path
Ram Prasad Ghimire, Secretary at the Ministry of
Industry, Commerce and Supplies (MoICS), stressed that the new interim government
must prioritise transparency, opportunity, and good governance, even through
ordinances if necessary.
Likewise, Finance Ministry spokesperson Tanka Prasad
Pandey outlined a plan involving stimulus packages, investment protection, and
support for affected businesses. “The government and private sector are
partners in economic development. The Finance Ministry is working on a package to
send a message on investment protection, concession, relief and good
governance,” he said.
Experts also called for loan restructuring, reduced
interest rates, and policy support for youth-led start-ups. Suggestions
included mandatory insurance for government assets, part-time job schemes for
students, and tax exemptions for damaged infrastructure.
Despite the turmoil,
Nepal’s economic indicators remain stable, said Sushil Gyewali, CEO of the
Investment Board. Drawing parallels with Sri Lanka’s crisis, he asserted that
Nepal still has a window for recovery, if trust is restored and reforms are
delivered.
Published in The Rising Nepal daily on 24 September 2025.
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