Kathmandu: Economists have suggested that the current situation, despite the significant physical damage due to vandalism and arson during Gen Z demonstrations, presents an opportunity for the private sector to engage in a course correction.
According to National News Agency Nepal, during a virtual interaction titled ‘Challenges of the Economy in the Current Situation and the Path Ahead’, organized by the Society of Economic Journalists Nepal (SEJAN), economists discussed the potential for positive change. They noted that the Gen Z protests were driven by opposition to misrule and rampant corruption in the country.
Former Secretary of the Ministry of Finance, Rameshwar Khanal, highlighted the importance of citizens uniting against corruption, seeing it as a positive development. He urged the government to capitalize on this momentum by prioritizing reconstruction, creating new investment opportunities, and boosting investor confidence. Khanal emphasized that the challenges are man-made rather than natural, which complicates the possibility of receiving donor assistance.
He recalled similar situations in the past, such as during 2036 BS and the Maoist conflict, when significant infrastructure damage occurred. However, he expressed optimism about Nepal’s ability to recover quickly, attributing this to the Gen Z movement’s message against corruption and misrule.
Khanal also noted that the protests did not significantly impact key economic sectors like remittance, agriculture, and tourism. He stressed the importance of media responsibility in reporting, citing incidents of political revenge leading to the torching of properties like Bhat Bhateni Super Market and Hilton Hotel.
Economist Dr. Samir Khatiwada echoed these sentiments, viewing the protests as a chance for Nepal to correct its course. He suggested that dismantling crony capitalism and promoting good governance could help remove Nepal from the Financial Action Task Force (FATF) grey list. Khatiwada also stressed the potential in tourism and the need for positive international publicity to mitigate concerns.
Khatiwada called for open, transparent, and independent economic policies, acknowledging the Gen Z protests’ potential impact on foreign investment. However, he noted that foreign investment currently constitutes only 0.3 percent of the GDP, suggesting limited cause for alarm.