Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Rastra Bank Governor Dr. Bishwanath Poudel has revealed that private sector structures with an estimated investment of NPR 37 billion by banks were damaged during the Jeenji (Janajati) protests on 23–24 Bhadra, which involved widespread vandalism and arson targeting both government and private properties.
Speaking on the aftermath, Dr. Poudel said the central bank conducted a quick assessment and estimated that damages to private sector investments funded by banks amounted to NPR 37 billion. “From the bank’s point of view, this is the quick calculation of damage in the private sector. Some of these are insured, but the main destruction was on government property,” he added.
He highlighted that investor confidence has declined sharply following the protests. “Even though funds were available in the past, investments were stagnant. The protests worsened the already fragile investment climate,” Dr. Poudel noted, emphasizing that policy and infrastructure development required to attract major investments had been slow.
The governor pointed out that strategic routes like the Muglin–Kathmandu highway, critical for economic activity, have seen little improvement in over 30 years, limiting business expansion outside the capital. Despite low interest rates, demand for investment remained muted due to an unsupportive business environment. Consequently, banks struggled to deploy capital effectively, leading the central bank to withdraw deposits in some cases.
Dr. Poudel also stressed that economic activity and investment remain highly concentrated in Kathmandu and Terai cities, while other regions, despite infrastructure, lack hotels, cafes, tourism facilities, and entertainment options to generate revenue and employment. He called for creating a business-friendly environment and urged authorities to support entrepreneurs rather than scrutinize minor mistakes, highlighting their role in job creation and tax contributions.
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