Destruction during Gen Z-led Protests Hits Investor Confidence Hard: CNI President

Birendra Raj Pandey, President of the Confederation of Nepalese Industries (CNI), said Tuesday, September 23, that the destruction of private and public properties during the Gen Z-led protests has severely shaken investor confidence.

He made the remark at a discussion organised by the Nepalese Association of Financial Journalists (NAFIJ) on “The Road Ahead for Economic Revival.”

“Industries have suffered losses equivalent to 5 percent of GDP. For investors, the safety of their investment is critical. The government must guarantee this security and focus on what facilities can be provided through fiscal and monetary policies to enable quick recovery,” Pandey said.

Earlier this year, the National Statistics Office had estimated Nepal’s GDP to reach Rs 6,107 billion by the end of the fiscal year 2024/25, which ended mid-July.

On September 21, Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), told Interim Prime Minister Sushila Karki, Finance Minister Rameshore Khanal, and Home Minister Om Prakash Aryal that preliminary estimates put private sector losses from arson, vandalism, and looting during the protests at around Rs 80 billion.

Pandey urged the government to adopt both short-term and long-term strategies. He proposed granting concessions to large industries within a defined period. “CNI has already recommended amendments to several laws. We need simpler, clearer legislation,” he said.

He also underlined the urgency of education reform. “There is investment in education, but the return is minimal. We must identify what facilities can make it more effective and move forward accordingly,” Pandey noted.

According to him, a joint venture investment that had been in the pipeline was stalled because of the protests. He emphasised that priority must now be given to sectors such as energy, tourism, education, and agriculture, with targeted action in each.