Private Sector Warns Attacks during Gen Z Protests Could Hurt Investment

Representatives of the private sector have warned that attacks targeting businesspersons and private property during the recent Gen Z protests could adversely affect investment by creating fear and uncertainty.

Speaking at a thematic session organised on Saturday under the Birat Trade Expo, participants said the Gen Z movement emerged against widespread corruption and government inefficiency. While the demand for good governance is legitimate, they said attacks on the private sector have created an atmosphere of fear that could undermine investor confidence.

According to a government-formed committee, vandalism and arson during the protests caused damage worth more than Rs 84 billion to public and private property.

The session, titled “Business after the Gen Z Movement: What Happened, What Should Have Happened, and the Way Forward,” was organised by the Morang Chamber of Commerce and Industry in coordination with New Business Age.

Central Committee Member of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and former President of Morang Chamber of Commerce and Industry Nabin Rijal said arson, vandalism and attacks on industrialists and traders have instilled fear in the private sector, which could negatively affect both investment and employment.

“Corruption reached a breaking point, forcing young people to take to the streets,” Rijal said, adding that policies, laws and working styles now need to be practical and country-specific.

He said the movement sent a strong message to the country but warned that its objectives would remain unfulfilled unless older generations, political leadership and the bureaucracy reform themselves. Long-ignored demands of the private sector, he added, had contributed to growing frustration.

Highlighting Nepal’s market potential, Rijal said sectors such as digital trade, hydropower, agriculture, tourism and export promotion hold significant promise. “Reducing the trade deficit without boosting exports is impossible,” he said.

CNI Koshi Province President Pawan Sharda said the Gen Z movement reflected widespread public dissatisfaction but noted that the expected mindset change has yet to be seen in political parties and the bureaucracy. He stressed the need for a simple and practical tax system, saying high taxes have made Nepali industries lose competitive edge with India. He also called for increased investment in information technology to curb youth migration.

Senior Vice-President of Chamber of Industries Morang Bholeshwar Dulal said the protests caused severe damage to the economy and business sector. “Losses worth nearly Rs 100 billion occurred within just two days,” he said, adding that the absence of clear leadership during the movement further weakened the investment climate.

Vice-Chair of the Koshi Province Planning Commission Tara Niraula said the leaderless and unorganised nature of the movement prevented it from achieving expected outcomes. Condemning attacks on the private sector in the name of protest, he said claims that development stalled after the introduction of federalism were misleading.

He stressed the need for tax reform, legal uniformity among federal, provincial and local governments, and protection of national capital. “The core demand of the Gen Z movement is to move towards a development system anchored in good governance,” Niraula said.