Government to Prepare Integrated Business Recovery Plan to Revive Private Sector

The interim government is preparing an Integrated Business Recovery Plan to help industries and businesses regain stability and restore investor confidence after widespread damage during the recent Gen Z protests. Finance Minister Rameshore Khanal announced the initiative on Tuesday during a meeting with private sector representatives at the Ministry of Finance.

Khanal, who pledged to cut unnecessary expenditures on his first day in office, assured private sector leaders on his second day that the government will provide full support. He personally inspected fire-damaged sites, including automobile showrooms in Thapathali, the Bhatbhateni Superstore in Koteshwor, and the Annapurna and Kantipur media houses.

Calling the private sector’s crisis a national concern, Khanal said fiscal and monetary incentives will be part of the recovery plan. He extended the deadline for paying value-added tax and excise duties from September 10 to October 11, giving businesses an extra month to comply.

The Ministry of Finance has also decided to create a reconstruction fund for public and private sector losses. Finance Secretary Ghanshyam Upadhyay explained that the ministry and Nepal Rastra Bank (NRB) will develop a coordinated fiscal and monetary response. A task force led by Joint Secretary Uttar Kumar Khatri, with Joint Secretary Dhaniram Sharma and NRB Executive Directors Guru Prasad Paudel and Kiran Pandit, has been given two days to recommend measures on public finance, monetary policy, and infrastructure rebuilding.

During the meeting, private sector leaders urged the government to guarantee security, provide tax relief, facilitate concessional loans, and expedite insurance payouts for damaged enterprises. They emphasized that timely policy action is essential to restore business confidence and attract investment.

Representatives from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Nepal Chamber of Commerce, Confederation of Nepalese Industries (CNI), NADA Automobiles Association of Nepal, and major business groups such as Chaudhary and Bhatbhateni participated in the discussions.

FNCCI President Chandra Dhakal called for a permanent dialogue mechanism between government and business to ensure stable governance and a supportive investment climate. He proposed reducing VAT rates on essential goods, offering special packages to attract Indian tourists, granting production-linked incentives to small and medium enterprises, and reallocating budget funds from non-priority projects to reconstruction.

CNI President Birendra Pandey welcomed the government’s prompt response, highlighting the extended tax deadline and the planned recovery plan as immediate relief. Nepal Chamber of Commerce President Kamlesh Kumar Agrawal urged policies to stimulate investment, expand industries, and boost consumer demand. NADA President Karan Chaudhary stressed the need for joint efforts to revive the severely affected automobile sector.

According to CNI sources, major private companies affiliated with the confederation have reported combined losses exceeding Rs 60 billion from arson and vandalism. FNCCI officials said a full assessment of damages across the private sector is still underway.

Damage Claims of Businesses as per CNI includes Rs 30 billion sustained by Bhatbhateni, Rs 25 billion by various hotels, Rs 5 billion by Chaudhary Group, Rs 1 billion by Anuj Agarwal and Rs 1 billion by others.