Peace, stability, and prosperity require collective partnership with the private sector – PM

Prime Minister Smt. Sushila Karki

The resilience demonstrated by Nepal’s private sector during one of the most challenging phases in our recent history deserves the highest recognition. Despite deep pain, uncertainty, and losses, entrepreneurs and businesses have continued to operate with courage, responsibility, and faith in the nation’s future. On behalf of the Government of Nepal, I express sincere appreciation for this perseverance, which has helped keep the economy functioning during extraordinary circumstances.

This government was formed with two clear mandates: to lay a strong foundation for good governance and to ensure that elections are held on schedule on February 21. Today, I can state with confidence that, through continuous dialogue and cooperation with political parties, youth groups, and key stakeholders, the government is firmly on track to conduct elections on the designated date. I extend my gratitude to all political parties, the Election Commission, and concerned institutions for their constructive cooperation.

Over the past 75 years, Nepal has witnessed more than half a dozen major political movements and undergone five constitutional transitions, including interim arrangements. Many of these changes were considered progressive at the time. Yet, most failed to become sustainable. The core reason is clear: political change did not translate into tangible improvements in citizens’ livelihoods. Employment opportunities, entrepreneurship, and fair economic prospects remained inadequate, while justice and accountability in conduct and governance fell short. As a result, public frustration accumulated to an explosive level.

This frustration manifested tragically during the Gen-Z movement of September 23 and 24, an event that left deep and lasting wounds. The loss of human lives is immeasurable and cannot be compensated. It will remain a painful scar on our national conscience. According to the Damage Assessment Committee, the protests caused direct physical losses of approximately NPR 84 billion, of which more than NPR 33 billion was borne by the private sector. This wound must be healed—carefully, responsibly, and with resolve—so that the nation can rise stronger than before.

In handling this extraordinary situation, the government has exercised maximum restraint and responsibility to prevent further escalation and to maintain peace and order. I urge all sides to uphold peace, tolerance, and restraint. Ensuring elections is not merely a procedural obligation; it is essential to prevent the nation from drifting toward instability or failure. Elections remain the most effective instrument to uphold the rule of law, protect democratic achievements, restore stability, and rebuild a credible business environment. I call upon all stakeholders to cooperate fully in making the upcoming elections a success.

In parallel, the government has taken concrete measures to protect and revive businesses, clearly signaling our firm commitment to partnership with the private sector. Through monetary, financial, and development policy instruments, the government has addressed the major demands of businesses affected by the Gen-Z movement. These measures include extensions of tax payment deadlines, provisions for loan rescheduling, and advance payments for insurance claims. The government has also provided full security assurances to business operators.

Important administrative reforms have been initiated. Customs valuation has begun recognizing transaction value-based systems. The Inland Revenue Department has expanded digital services, enabling online PAN registration and online tax clearance certificates. A risk-based audit system has replaced blanket full audits, reducing unnecessary compliance burdens.

Several reforms have also been introduced to promote investment. Approval requirements for repatriation of dividends, interest, and other lawful returns by foreign investors have been simplified, allowing direct foreign exchange facilities through commercial banks. Procedures enabling Nepali IT companies to invest abroad have been streamlined to help them access international markets. Even companies currently under blacklisting provisions have been allowed to bring in foreign investment for business revival under defined legal frameworks. Foreign currency inflow processes have been simplified, and restrictions on land subdivision have been revised to remove long-standing bottlenecks in the real estate and housing market.

That said, we are fully aware of this government’s limitations. This is not a government formed to undertake sweeping legislative overhauls, nor does it have the authority to amend laws extensively. Formed in the aftermath of the Gen-Z movement, this government is operating strictly within the mandate conferred by the President—to establish good governance and guide the country toward political stability.

At this juncture, all stakeholders must clearly understand one truth: unless citizens experience real improvements in livelihoods and feel that they are treated fairly and justly, dissatisfaction will persist. Public frustration and perceived injustice are the root causes of conflict, disorder, and instability. Recognizing this sensitivity, collective efforts involving the government, political parties, civil society, and the youth are not only desirable—they are essential.

Let us make a shared commitment here: once rebuilt, the private sector will not be allowed to burn again. Entrepreneurs must be able to invest with confidence. The government respects the role of businesses as employers, service providers, infrastructure builders, contributors to revenue, and creators of national wealth. We are committed to ensuring uninterrupted professional freedom, protection of property rights, rapid service delivery, and robust security. Acts such as strikes, vandalism, arson, and violent disruptions must be categorically prohibited in industrial zones, business districts, factories, enterprises, and private residences. I assure you that I will engage directly with my Cabinet colleagues to take all necessary decisions to uphold this commitment.

The government stands ready to develop additional action plans in collaboration with relevant ministries and business federations to remove remaining investment barriers. Law enforcement agencies are actively working to bring individuals and groups involved in infiltration, looting, arson, and criminal exploitation during the September protests within the ambit of justice.

I also urge entrepreneurs and business leaders to commit themselves to ethical and dignified business practices. Full adherence to the codes of conduct issued by the Federation of Nepalese Chambers of Commerce and Industry, as well as other recognized best practices and evolving corporate responsibilities, is essential to restoring trust between businesses and society.

Through elections, stability, and guaranteed freedom to conduct business, the government remains fully committed to fostering entrepreneurship and economic growth. In this endeavor, we require the positive cooperation and goodwill of political parties, civil society, the youth, and the general public alike.

Only through peace, stability, and collective responsibility can Nepal secure a prosperous and inclusive future.

(Remarks delivered by Prime Minister Smt. Sushila Karki at the all-party national dialogue program titled “Collaboration for Peace, Stability, and Prosperity: A Collective Initiative,” organized by the Federation of Nepalese Chambers of Commerce and Industry.)