Preliminary Estimates Put Private Sector Losses from Zen Z-led Protests at Rs 80 Billion: FNCCI

Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said Sunday, September 21, that preliminary estimates put private sector losses from arson, vandalism, and looting during the Gen Z-led protests at around Rs 80 billion.

He made the remarks during a meeting with Interim Prime Minister Sushila Karki, Finance Minister Rameshore Khanal and Home Minister Om Prakash Aryal. Dhakal noted that details from many industries, small businesses, and enterprises outside Kathmandu are still pending, with some duplication in reporting. FNCCI is conducting a nationwide survey to compile a full account of the damage.

As the country’s leading private sector body, FNCCI urged the government to guarantee security, coordination, and cooperation to help rebuild the economy. Dhakal said the business community expects an environment where enterprises can operate with dignity and without fear.

“We are ready to stand firm ourselves and to coordinate with the government,” he said, adding that the attacks during the protests showed a failure to recognise the importance of the private sector.

According to a joint FNCCI–IFC study, the private sector contributes 81 percent to Nepal’s GDP and provides 86 percent of total employment.

Dhakal stressed the need for a permanent dialogue mechanism between business and government to restore confidence and ensure an open operating environment. He warned that failing to punish those behind the violence would foster impunity and further discourage investment.

Dhakal also outlined a set of recovery measures. He called for loan restructuring and rescheduling for affected firms, tax concessions to attract fresh investment, and adjustments in VAT rates to stimulate demand. He highlighted the importance of improving public services, accelerating digital governance, and easing customs duties on essential imports for reconstruction.

FNCCI reiterated its longstanding demands for simplifying company registration and deregistration through the Nagarik App, eliminating the annual renewal requirement after tax payment, and exempting struggling businesses from various fees. Dhakal further proposed that corporate social responsibility (CSR) funds be channelled into reconstruction efforts, provided they are recognised as legitimate business expenses.

Nepal is set to graduate from least developed country (LDC) status by 2026, but Dhakal cautioned that the current economic shock could make the transition difficult. He pointed to Bangladesh, which is already seeking to defer its own graduation due to similar challenges, and suggested that Nepal also request the United Nations to postpone its upgrade.

FNCCI called for additional measures including production-based relief for small and medium enterprises, concessional credit, and a review of the national budget to reallocate unproductive spending towards reconstruction. Business leaders also pressed for suspension of the working capital loan guidelines for at least two years, interest subsidies, and immediate access to refinancing facilities.