FNCCI Warns of Economic Fallout if Businesses Remain Under Threat

As youth-led protests swept across Nepal this week, leaving a trail of vandalised factories, burnt offices and ransacked residences of entreprenuers, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has issued a sharp warning. The country’s top private-sector body has urged the government to act swiftly to protect businesses and professionals from further attacks — or risk deeper economic turmoil.

In a statement released on Friday, 12 September, the FNCCI condemned the widespread arson and destruction that flared during the protests, which were largely driven by frustration over corruption and governance failures. It said the unrest had already inflicted damage worth billions of rupees on industries, enterprises, and infrastructure, and cautioned that the toll on government revenue and national GDP could be severe.

“If the private sector cannot operate smoothly, the economy will face further problems and revenue will be negatively affected,” the statement read.

Rising Anxiety Amid Youth Uprising

The FNCCI acknowledged that the protests had brought long-simmering public discontent to the surface — especially among the younger generation. It noted that demonstrators had raised crucial issues: good governance, corruption control, freedom of expression, dignified employment, self-employment, and efficient use of public revenue.

The federation said these grievances must be addressed through prudent and measured political responses, not through further instability that could paralyse the economy. It stressed that youth aspirations for accountability and opportunity must be channelled towards building a stronger, fairer economy rather than dismantling it.

A Call for Security and Stability

Declaring its readiness to coordinate and cooperate with the government, the FNCCI said the private sector would remain the main source of funds for reconstruction and rebuilding in the days ahead. To fulfil that role, it argued, enterprises need a secure environment to operate without disruption.

The federation has a vast presence across the country — in every district and over 100 municipalities — and represents nearly 600,000 small, medium, and large-scale businesses. This reach, it said, positions the private sector as an indispensable pillar of the national economy.

It also urged authorities to ensure smooth movement of essential service workers and transportation of critical goods — including medicines, food, milk, water, fruits, vegetables, and petroleum products — even during curfews and prohibitory orders. To bolster coordination, it proposed that FNCCI representatives be included in security committees at the central, provincial, and district levels.

Preventing Market Disruptions

The FNCCI appealed to entrepreneurs to ensure regular supply of quality goods to prevent market shortages, and requested its provincial, district, municipal, and commodity-based member organisations to actively monitor the situation. It further pressed the government to provide security and create a conducive environment for the resumption of imports and exports through customs checkpoints, many of which remain closed despite international airports being operational.

Private Sector’s Pivotal Role
The federation highlighted the scale of the private sector’s contribution: 81 percent to the national economy, 80 percent to government revenue, and 86 percent to employment. Given this, it said, the private sector must be included in decision-making to help revive the economy and restore stability.

These concerns were also discussed during a meeting of the FNCCI executive committee and former presidents Wednesday, which decided to make the private sector’s position public.

The statement concluded on a pointed note: creating an environment for high economic growth with social justice is the only path to ensuring dignified employment with decent wages. The FNCCI urged all stakeholders to guarantee good governance, protect freedom of expression, and uphold the right to pursue professions and businesses freely — while fostering investment and job creation in line with youth aspirations.

“This,” the federation said, “is how we can contribute to building a prosperous and stable society.”