Business Sector Warns of Economic Fallout if Social Media Platforms Are Banned in Nepal

Platforms such as Facebook and Instagram have become vital “digital marketplaces” for thousands of small businesses in Nepal. While TikTok has not been restricted, experts warn that banning other social media platforms widely used for commercial activities would have severe economic consequences.

Information technology expert Dr. Rajib Subba highlighted the potential risks to Nepal’s digital economy. “Thousands of small businesses rely on Facebook and Instagram to run operations, while YouTube has enabled many young people to generate employment. What will happen to their future?” he asked. “The question now is whether the government is prepared to shut down businesses and jobs dependent on social media.”

According to Dr. Subba, such restrictions would also hurt Nepal’s tourism promotion. International visitors rely heavily on platforms like Facebook, Instagram, and YouTube to learn about Nepal and share their travel experiences. A ban would significantly reduce global exposure of the country’s natural beauty and tourist destinations. He added that for millions of Nepali migrant workers and students abroad, these platforms serve as lifelines to connect with families back home. During past crises such as earthquakes, social media was also a key emergency communication channel. Shutting them down, he said, would infringe on citizens’ rights.

The economic impact would extend beyond connectivity. Social media is currently the most effective tool for directly delivering products such as clothing, food, and handicrafts to consumers. If platforms are blocked, thousands of businesses could face losses, potentially leading to higher unemployment.

The digital marketing and advertising sector is also at risk. Many Nepali agencies and independent marketers primarily operate on Facebook, Instagram, and YouTube. If these platforms go offline, the industry could collapse, leaving thousands of young professionals jobless. Similarly, the growing community of content creators and influencers would lose a major source of income. Experts noted that Nepal’s emerging “creator economy” depends heavily on revenue from brand promotions, advertisements, and online views.

Ranjit Acharya, CEO of Prisma Advertising, pointed to twofold effects on the advertising market. “A lot of money was flowing abroad through social media advertisements, and that will decline if these platforms are blocked,” he told New Business Age. “But the overall impact on Nepal’s economy remains to be seen.”

Asked whether the media industry might benefit, Acharya expressed caution. He noted that newspaper circulation has already declined, and since the Covid-19 pandemic, news consumption habits have shifted. “The question is how media outlets will adapt and bring audiences back under such conditions,” he said.

Telecommunications and mobile service providers would also be hit, as social media drives significant data consumption. When TikTok was banned earlier, Ncell reported a loss of nearly one billion rupees worth of data usage.