June 15: With the extension of prohibitory order imposed to control coronavirus pandemic, businessmen have started shutting down their shops permanently. They have started doing so as they are facing difficulty paying the rent.

The prohibitory order issued by the government in the Kathmandu Valley on April 29 has been extended for one more week until June 21. The businessmen say that the extended lockdown has led them to vacate the shutters.

According to the Nepal National Entrepreneurs’ Federation, more than 1,500 businessmen in the cities including Kathmandu Valley, Pokhara, Biratnagar, Butwal and Nepalgunj have vacated the shutters in the last one week. According to the president of the federation Naresh Katuwal, about 50 percent of businessmen who have vacated the shutters are from Kathmandu Valley. He said that the number of shutters vacated has increased in the main business hubs of Kathmandu including Thamel, New Road, Ason, Indrachowk, Koteshwor and Kalanki.  

Most of those who have shut down their shops are small traders running fancy-dress stores, shoe shops and hotels. According to the federation, about 40 percent of the shutters for commercial purposes were vacated in Kathmandu Valley last year due to the extended lockdown.

Stating that small and medium entrepreneurs have been most affected by the lockdown last year and now, Katuwal said that they would disobey the government’s order if the lockdown is extended beyond June 22.

In addition, Baikuntha Dahal, general secretary of the National Trade Association New Road, said that if the government extends the lockdown again from next week, they would protest against the decision and resume their business.

If the government keeps extending the lockdown, the businessmen say that their demand including waiver of interest on loan taken from banks and discount on the rent should be fulfilled.

Depending on the location, the traders have been paying a minimum rent of Rs 20,000 to Rs 200,000 in the main business centers of Kathmandu.

Due to the lockdown, small and medium-sized businesses that contribute about 22 percent of the country's gross domestic product and provide employment to more than 1.7 million people have been halted.