Kathmandu: Two months after the Gen Z protest that shook Nepal, resulting in the fall of the KP Oli-led government and the dissolution of the House of Representatives, the country is grappling with significant economic challenges. The protest, held on September 8-9, led to the tragic loss of over 72 lives, including 45 who have been declared martyrs, and caused substantial damage to both private and public property. The interim government, tasked with organizing the House of Representatives election scheduled for March 5, is now focusing on election preparations while engaging with key political stakeholders.
According to National News Agency Nepal, the private sector, severely impacted by the September 9 events, is struggling to recover. Businesses suffered extensive losses due to arson and vandalism, with investments in business complexes, hotels, and supermarkets, such as Hilton and Bhatbhateni Supermarket, being destroyed. The owner of Bhatbhateni Supermarket, Min Bahadur Gurung, expressed his devastation over the losses on a televised interview. Many business owners are now demanding adequate security measures to protect their investments and ensure the safety of their enterprises in the future.
The political turmoil has compounded the economic challenges Nepal faces. Although the President quickly addressed the political vacuum by installing a new government with a mandate to hold elections, the economic repercussions of the unrest remain significant. The state’s cooperation and policy adjustments are essential to revive industries and restore investor confidence. The economic shock, intertwined with political instability, highlights the need for a comprehensive approach to address the country’s challenges.
Nepal’s economy has long been affected by issues such as youth exodus, brain drain, and a reliance on remittances. Political instability and frequent changes in government have exacerbated these problems, hindering economic progress. Despite calls for struggle and revolution from political leaders, the aspirations of the youth and broader economic goals remain unfulfilled.
Infrastructure projects, like the Gautam Buddha International Airport and Pokhara International Airport, are underutilized, adding to economic concerns. Local business leaders in Bhairahawa have criticized political leaders for failing to maximize the potential of these projects. Additionally, a recent report by Nepal Rastra Bank highlighted infrastructure deficiencies, such as unreliable roadways in Bagmati Province, which impact transportation and economic activities.
The interim government, led by Finance Minister Rameshwor Khanal, is implementing austerity measures to manage the election budget and address economic concerns. Efforts to reduce unnecessary expenditures and tackle corruption are underway, aligning with the demands of the Gen Z protest for good governance. Establishing a conducive environment for business and investment is crucial for economic recovery.
Prime Minister Sushila Karki emphasized the importance of collaboration among the government, society, and the private sector to drive economic prosperity. At a recent “National Economic Dialogue 2.0,” she highlighted the role of industrialists, entrepreneurs, and workers as the fuel for the national economy. As the interim government works to address these challenges, its success in boosting the private sector’s morale and fostering economic growth will be vital for Nepal’s future.