KATHMANDU, Sept 21: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has estimated that the private sector suffered losses worth nearly Rs 80 billion during the recent Gen-Z protests.
In a meeting with Prime Minister Sushila Karki on Sunday, FNCCI President Chandra Prasad Dhakal said the private sector is seeking government security and cooperation to continue operating in a dignified manner. He stressed that attacks on businesses during the protests show a lack of recognition of the sector’s role in the economy.
Citing an FNCCI–IFC study, Dhakal highlighted that the private sector contributes 81 percent to the national economy and provides 86 percent of employment. He urged the government to establish a permanent dialogue mechanism with business representatives, ensure a safe environment for entrepreneurs, and restore confidence for investment.
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FNCCI said it is still gathering data from across the country, but preliminary figures show losses of about Rs 80 billion. According to Dhakal, several industries, particularly small and medium enterprises outside the capital, have yet to submit details, and duplication in reporting remains an issue.
The FNCCI demanded action against those responsible for infiltrating and vandalizing businesses during the protests, warning that failure to act would encourage impunity and further discourage private investment.
During the discussion, FNCCI proposed a range of relief measures, including loan restructuring and rescheduling facilities for affected businesses; tax concessions, including adjustments in income tax and VAT to stimulate demand; exemptions on customs duties for importing reconstruction materials, suspension of working capital loan guidelines for at least two years; concessional refinancing and interest subsidies.
The FNCCI also reiterated long-standing demands such as simplifying business registration and deregistration via the Nagarik app, removing mandatory renewal requirements after tax clearance, and allowing companies to count social responsibility spending on reconstruction as expenses.
Dhakal further cautioned that the recent economic disruption could complicate Nepal’s scheduled graduation from the Least Developed Country (LDC) category in 2026. He pointed out that Bangladesh, facing similar challenges, has sought to defer its graduation, and suggested Nepal should also consider requesting a delay from the United Nations.
