‘Protect business, Protect democracy: A call for collective national action’

Chandra Prasad Dhakal

Nepal today stands at a critical crossroads. The political, social and economic circumstances that have evolved after the Gen-Z movement of Bhadra 23 and 24 have forced all of us—government, political parties, private sector, youth and civil society—to reflect seriously on the direction our country is heading. Peace, stability and prosperity are no longer abstract aspirations; they are immediate necessities.

Around two months ago, at this very venue, FNCCI organised the National Economic Debate – Part II with a clear objective: to urge the government to restore confidence and security in the private sector at a time when its morale had been deeply shaken. The presence of the Right Honourable Prime Minister, the Finance Minister, other cabinet ministers and senior government officials reflected the seriousness of the moment.

On behalf of Nepal’s entire private sector, we raised three core demands. First, firm action against those involved in arson, vandalism and destruction during the protests through criminal infiltration. Second, immediate approval and implementation of a Private Sector Protection and Promotion Strategy by the Council of Ministers. Third, political stability through timely elections and resolution of long-standing disputes, including the dedicated trunk line issue that had directly affected businesses.

I am encouraged that the dedicated trunk line dispute is now moving toward resolution under the leadership of the Prime Minister. For this, I sincerely thank the Government of Nepal and all concerned stakeholders.

Elections as a Foundation of Stability

Elections are the institutional backbone of democracy. The commitment and effort shown by the Prime Minister, the Council of Ministers and the Government of Nepal toward upcoming elections deserve appreciation. The readiness demonstrated by political parties further indicates that the country is moving decisively toward an electoral process.

This election-oriented environment is, in my view, a clear example of the government’s commitment to democracy, peace and stability. It signals flexibility, responsibility and intent. Yet, even amid this positive political momentum, the issue of private sector protection remains overshadowed.

Private Sector Still Lacks Confidence

Despite political progress, the private sector still does not enjoy a guaranteed environment to operate freely. Entrepreneurs are not confident enough to invest. The absence of visible action against wrongdoers raises legitimate fears that impunity may continue to grow.

Investment does not flow without policy certainty, respect for enterprise, security of property and assurance of uninterrupted business operations. Without investment, jobs cannot be created. Without jobs, incomes do not rise. Without rising incomes, improvements in human development—education, health and social welfare—remain unattainable.

Government revenue grows only when the private sector is enabled and encouraged to operate. Yet today, the government faces a deficit of around Rs 150 billion, while banks are ready to lend nearly Rs 11 trillion. Still, the private sector is unwilling to borrow—not because of lack of capital, but because of lack of confidence. This has reached a point where even government salary obligations are under strain.

A Constrained Economy, A Forced Exodus

Infrastructure investment has stalled. Even private-sector-led infrastructure projects face repeated obstructions under various pretexts. Without industries, factories and infrastructure, how can employment be created? How can we realistically promise jobs within the country?

The government itself can create only 3,000 to 3,500 jobs annually. With the private sector shrinking, opportunities there are also limited. This is why our youth are compelled to migrate abroad.

A crucial question arises: if Nepali youth can work in private enterprises overseas, why can they not work in private industries at home? The problem is not willingness; it is the absence of an enabling environment. Policy barriers, complex procedures, a lack of business-friendly governance and growing negative sentiment toward the private sector have all contributed. Recent incidents of arson and vandalism have further deepened despair.

Understanding the Gen-Z Movement

Nepal has witnessed more than half a dozen major political movements in the past 75 years. Yet, people’s livelihoods have not improved as expected. This is why political transformations often fail to sustain themselves. Public frustration stems primarily from the inability to secure dignified livelihoods.

Economic activity driven by the private sector was never prioritised adequately, nor were its recommendations taken seriously. In this context, we view the Gen-Z movement as an expression of accumulated frustration—particularly around governance and corruption. Unfortunately, criminal infiltration turned parts of that movement violent, once again making the private sector a primary target.

According to FNCCI’s assessment, the protests caused direct physical damage of around Rs 40 billion, while overall losses to the private sector amounted to approximately Rs 81 billion.

A Fragile Moment for Nepal

While damaged structures may eventually be rebuilt, there is no guarantee that the private sector will not be targeted again. Today, business morale is at its lowest point in Nepal’s history. Capital flight risks have increased, and there is a growing fear that the country itself could drift toward failure.

Global experience is sobering. Since 2011, among eight countries that underwent major political upheaval, only Sri Lanka has managed to restore relative stability. This sensitivity demands that Nepal act with foresight and responsibility.

It is in this context that FNCCI has brought together the government, political parties, youth and civil society for a collective initiative for peace, stability and prosperity.

What Must Be Done—Now

Our first and most urgent demand is clarity of commitment—from the government, political parties, the private sector and Gen-Z groups.

We call on the Council of Ministers to formally recognise industry and business as priority sectors by approving and implementing the Private Sector Protection and Promotion Strategy. This strategy must guarantee:

• Uninterrupted right to conduct business and protection of property
• Prohibition of strikes, vandalism and arson targeting businesses
• Rapid-response security units and dedicated hotlines for business protection
• Swift legal action against those involved in looting and violence during the Bhadra protests
• Simplified business registration and closure, concessional financing, market access and a comprehensive youth entrepreneurship development programme

Political parties that have governed the country for decades must also reflect seriously on the youth’s demands for good governance and corruption control. Commitment to democracy, market economy, peace and stability must translate into concrete guarantees for business freedom.

A Call to Youth and Media

To the Gen-Z youth, I urge continued advocacy for integrity, good governance and a corruption-free society—without allowing criminal elements to hijack legitimate movements. FNCCI stands ready to collaborate with the government and youth on entrepreneurship programmes that create opportunities at home.

To the media, I make a sincere appeal. The press is the fourth pillar of the state—a watchdog of the executive, legislature and judiciary. Information carries immense power. One inaccurate report can destroy businesses, cost thousands of jobs, wipe out billions in revenue and erode trust built over decades. Responsible journalism is therefore not optional; it is essential for national stability.

The Private Sector’s Commitment

The private sector remains committed—to the nation, society and ethical business practices. We fully adhere to FNCCI’s code of conduct and evolving standards of corporate responsibility.

Let me pose a few honest questions:
Is it a crime for an entrepreneur who takes loans and risks capital to expect profit through service delivery?
Is job creation wrong?
Is paying taxes to run the state wrong?
Is building infrastructure and serving the public wrong?

The private sector currently provides employment to around 5.5 million people. Can the government alone do that? The answer is self-evident.

Even during the Covid crisis, when courts allowed extensions, we appealed for tax payments—and revenue targets were met. Yet, the private sector continues to face blame.

Looking Forward: Investing in Nepal, With Nepali Capital

With a vision to mobilise domestic capital for domestic growth, FNCCI has facilitated the establishment of Nepal Development Public Limited (NDP). The objective is clear: invest Nepali capital in large infrastructure projects and startups, create mass employment, boost revenue and demonstrate that national prosperity is achievable through domestic strength.

The private sector is the driver of prosperity. The world recognises this truth: Private sector powers the nation.

Our demand is simple and firm—timely elections, sustained stability, zero tolerance for violence against businesses, and respect for the natural right to earn through honest enterprise. Let us internalise one shared belief:

Private Sector: The Engine of Prosperity.

Only then can we hand over not a failed nation, but a prosperous Nepal to future generations.

Dhakal is the President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI)