Nepal’s social media ban pushes tech-dependent businesses into crisis

KATHMANDU: Nepal’s digital economy has been thrown into turmoil after the government’s sweeping decision to block 26 social media platforms, including Facebook, Instagram, Twitter, and WhatsApp, citing lack of registration. The move has paralyzed the country’s online marketplace, leaving thousands of businesses scrambling for alternatives and threatening millions of livelihoods tied to the digital sector.

For many Nepali entrepreneurs, these platforms were not just entertainment tools but essential channels for communication, marketing, customer engagement, and global outreach. With the sudden blackout, businesses across sectors — from automobile to retail, fashion, food delivery, and e-commerce — have been forced into uncertainty.

Digital Silence in the Marketplace

Kathmandu’s once-vibrant digital marketplace, powered by social media, has gone eerily quiet. Companies that invested heavily in digital marketing campaigns now face a void in customer engagement. Industry insiders warn that the ban is not only eroding Nepal’s business competitiveness but also tarnishing its image as an emerging tech-driven economy in South Asia.

“Now marketing will be extremely difficult. How do we showcase our new cars without social media? We can’t go door-to-door with every model,” said Jaya Golchha, Managing Director of Shangrila Motors, voicing frustration at the sudden loss of Nepal’s primary promotional channel.

Dependence Runs Deep

The impact is particularly severe in the automobile sector, where brand presence and sales campaigns rely heavily on Facebook and Instagram ads.

“Almost 60 to 70 percent of our promotion was through social media,” explained Karuna Pudasaini, Marketing Manager at Jagdamba Motors, the official distributor of TVS in Nepal. “For us, YouTube reviews are equally essential. This ban doesn’t just affect big brands — it hits every sector that depended on these tools.”

She criticized the lack of consultation with IT experts before implementing such a sweeping restriction. “Instead of solutions, the government chose to impose a ban. We should have worked together to regulate and benefit from these platforms, not shut them down.”

Broken Connections, Rising Costs

The ban has disrupted not just advertising but also internal communications. Businesses that relied on WhatsApp and Messenger for coordination are now struggling.

“We’ve had to shift our dealer communication to Viber, but adapting to new systems takes time. Even basic operations are slowed down,” Golchha added.

Technical glitches and unstable access through VPNs have worsened the problem. Many users complain of sluggish apps, unreliable connectivity, and lost productivity. Small businesses, digital creators, and Nepali freelancers — many of whom serve global clients — find themselves locked out of crucial communication channels.

Industry Reactions: A Divided View

While most businesses strongly oppose the ban, some acknowledge the government’s stance on regulation.

“The government had given time for registration, and no company should be above the law,” said Nishan Dhakal, Executive Director of IME Motors. He, however, admitted that a sudden blanket ban was a wrong approach: “There should have been discussions with stakeholders. Now, the entire industry is paying the price.”

Suryansh Vaidya of Vaidya Organization warned that the policy will have long-term negative effects on employment and empowerment. “These platforms gave millions of Nepalis jobs and international access. This is a regressive move,” he said.

Searching for Alternatives

Businesses are now redesigning strategies. Some are turning toward traditional media campaigns — print, radio, and television — while others are experimenting with Nepali digital news portals for ads. Jagdamba Motors, for example, is planning more retail activations, where customers can physically experience products, in a bid to reduce reliance on online campaigns.

Still, replacing the efficiency and reach of global social media platforms remains an uphill battle. “The convenience of social media cannot be substituted. Everyone was there — customers, influencers, and businesses,” Pudasaini said.

Broader Economic Shock

The social media ban has wider implications beyond business marketing. Nepal’s startup ecosystem, already struggling with limited access to venture capital, is now staring at a grim future. Entrepreneurs who once used Facebook and Instagram to scale businesses are being cut off from their consumer base. Freelancers providing IT and creative services to international clients also face declining opportunities, as seamless digital communication becomes nearly impossible.

Industry observers believe that global tech giants like Meta may eventually pressure Nepal to reconsider, as the ban deprives them of advertising revenue from the growing Nepali market. Until then, however, local businesses must navigate an uncertain digital void.

Public Sentiment and Political Risk

Public frustration is mounting as ordinary citizens, small business owners, and even migrant families abroad lose touch with their networks. Critics say the government has ignored the voices of 30 million people in its bid to assert control. “This is not about showing power. It’s about protecting the digital future of an entire nation,” Vaidya argued.

As calls for policy revision grow louder, the fate of Nepal’s digital economy hangs in balance. For now, businesses are waiting — hoping the government reopens dialogue and restores access before the damage becomes irreversible.