The private sector, which accounts for 81.55 percent of the total economy and contributes 85.6 percent to employment generation in the country, has repeatedly come under attack lately. Despite being the driving force for the economy through job creation and contribution to the national coffer as tax revenue, the private sector has been increasingly targeted – sometimes by republicans, other times by monarchists, and at times by independent groups – leaving it demoralised.
Gen Z started their protest on September 8 against corruption. The silent and disciplined march that started from Maitighar Mandala for the Parliament House at New Baneshwar turned violent – as it was hijacked by the infiltrations before they reached Baneshwar. The situation escalated – due to infiltrations – and went beyond control, forcing the police to open fire, which took the lives of 19 school children.
The grieved and angry people – after the death of school children – asked for resignation of Home Minister Ramesh Lekhak and Prime Minister KP Sharma Oli terming the death of 19 school children as a murder by the government. That evening, in the Cabinet, Home Minister Ramesh Lekhak resigned but the Prime Minister Oli took the issues very lightly and tried to put the blame on infiltrators for the death of school children.
As a result, the next day, on September 9, the protestors – where not only the Gen Z involved – not only arson and vandalized sensitive government structures like the Parliament building, Singha Durbar, the Supreme Court, the Prime Minister’s residence, and the President’s Office but also industries, businesses, and even private residences belonging to business groups.
Corporate houses targeted
The private residence of Nepal’s only Forbes listed dollar billionaire, Binod Chaudhary, in Ravi Bhawan was vandalised and put on fire. Further, properties under the Chaudhary Group, from the CG factory in Satungal to the CG Motors showroom in Thapathali, where vehicles were set on fire and vandalized. Similarly, residences and businesses belonging to his brothers Basant Chaudhary and Arun Chaudhary were also attacked, vandalized and looted. The Suzuki showroom in Thapathali was also destroyed, and looted. While exact figures are yet to come, employees suggest damages worth billions.
“Those miscreants may burn our buildings, but they cannot burn our dreams. They may loot our showrooms, but they cannot loot our values,” wrote CG’s Managing Director Nirvana Chaudhary, on his social media, expressing resilience despite the devastation.
The IME Group also faced severe damages. Its Chandragiri Cable Car base station in Kathmandu, the Maulakalika Cable Car in Nawalparasi, several Global IME Bank branches, and other business units were attacked. It not only destroyed infrastructure worth billions but also harmed investors since Global IME Bank and the cable car companies are listed on the Nepal Stock Exchange (Nepse). While these listed companies distribute dividends when they make profit, losses now mean investors will not receive returns.
Together, CG and IME Group provide at least 20,000 jobs and contribute billions annually in tax revenue to the state coffer. The attacks will inevitably reduce employment and government revenue.
Likewise, Bhat-Bhateni Supermarket, employing thousands across the country, has also been burned down to ashes. According to Chief Operating Officer (COO) Panu Paudel, September 9 alone, some 12 stores were completely burned, and nine others vandalized or looted.
Bhat-Bhateni operates 27 outlets nationwide. Initial estimates suggest damages worth about Rs 50 billion, much of which was financed by bank loans. More than 8,000 employees across branches have now lost their livelihoods.
When the Bhat-Bhateni headquarters in Naxal and 21 outlets across Nepal were damaged, the livelihoods of thousands of employees, their families, regular customers, and the lifetime investments of founder Min Bahadur Gurung have also been shattered.
It is clear these attacks were not by Gen Z protesters but by infiltrators. The Gen Z protest’s agenda was corruption control. However, other political actors, mostly opposition – including Rastriya Swatantra Party (RSP), infamous medical entrepreneur Durga Prasai, Maoist Centre and Rastriya Prajatantra Party (RPP) – hijacked the protests, as it can be seen in various photos and videos circulating on social media. Consequently, Kantipur Publications was targeted by arson and vandalism at its offices in the Thapathali Business Park, and Tinkune.
Other businesses like Captain Rameshwar Thapa’s Annapurna Tower, Simrik Air’s building, and the residence of Federation of Nepalese Chambers of Commerce and Industry’s (FNCCI) immediate past president Shekhar Golchha, were also attacked.
“We wish for positive change in the country and for the youth’s vision of a new Nepal to be realized. The attack touched our family too, but we stand firm. May democracy be strengthened. We remain committed to job creation and investment. May light bring unity after darkness,” wrote Golchha on social media.
Even the private residences of senior political leaders and the Governor of Nepal Rastra Bank, Dr Bishwo Paudel, were attacked. However, Gen Z leaders have clarified that such acts did not represent the spirit of their protest, and they are not involved in such attacks. Videos on social media also show Gen Z activists stating that the release of RSP Rabi Lamichhane was also not their agenda, accusing RSP and Lamichhane of misusing and discrediting their movement. It also validates the involvement of RSP, Durga Prasain and RPP in the name of Gen Z protest.
The FNCCI called the attacks, where a dozen individuals and business houses were selectively targeted. In its emergency online meeting on Wednesday, FNCCI raised serious concerns about the safety of entrepreneurs’ lives and properties and the means of protecting industries.
Multinational also affected
The protestors did not spear foreign investment also. The Hilton Hotel in Kathmandu was burned down, while telecommunication service provider Ncell and showrooms of Tata Motors, Hyundai, Suzuki, and Mahindra were attacked, vandalized and set on fire. Ncell alone suffered damages exceeding Rs 1 billion from arson and looting, with rebuilding of physical infrastructure expected to take six to seven months.
Industrial hubs like Biratnagar, Birgunj, Itahari, Pokhara, Dhangadhi, Dang, and Surkhet also witnessed widespread destruction.
According to initial estimates from business associations, the private sector alone has suffered losses exceeding Rs 240 billion. Considering Nepal’s economy in the fiscal year 2024-25 is valued at Rs 6.1 trillion at consumer prices, these losses amount to around 4 percent of the economy.
Financial sector hit hard
According to the Nepal Bankers’ Association, over 65 branches of banks and financial institutions were looted or burned nationwide, with numerous ATMs destroyed. This poses the risk of a liquidity crisis and shakes investor confidence, the association said.
While many businesses were insured, the volume of claims is expected to overwhelm insurers. The 2015 earthquake led to insurance claims worth Rs 17 billion, but this crisis could generate more than ten times that amount, the insurance companies estimate.
Entrepreneurs and FNCCI caution
Business leaders warn that the current situation threatens not just enterprises but overall livelihoods. Former FNCCI presidents and executives, in separate online meetings on Wednesday, stressed that such attacks not only destroy physical infrastructure but also wipe out jobs and weaken investors' confidence. The umbrella organizations like FNCCI, Confederation of Nepalese Industries (CNI), Nepal Chamber of Commerce (NCC), Federation of Contractors Association-Nepal (FCAN), issued statements condemning the attacks, urging the government to take immediate steps to safeguard the business environment.
Hits on morale
Repeated attacks from different groups undermine the morale and squeeze the investment capacity of the private sector. They create a perception that assets and investments are unsafe, which will discourage job creation. Continuous blame and violence widen the gap between businesses and society, feeding the misconception that entrepreneurs only chase profit, reducing social acceptance of the private sector.
Moreover, fears that ‘the next protest will burn down this structure too’ discourage new investment. Huge damages make it difficult to repay loans, complicating future access to credit. Foreign investors may also withdraw, perceiving Nepal as lacking legal protection.
Long-term risks
With continuous attacks on the private sector, foreign investments may gradually flee, and new investors will lose trust in Nepal. Experts warn that unless the government, administration, and protesters collectively cultivate a culture of protecting private property, Nepal’s economy risks becoming ‘irrecoverable.’
Still, Nepali private sector is resilient as it has survived a decade-long Maoist conflict and longer transitional periods. “Nepal’s private sector is resilient. It has the strength and willpower to rise again. However, the government must support us, and criminal-minded individuals must be punished,” said an entrepreneur, who wanted to remain anonymous.
As Nirvana Chaudhary and Shekhar Golchha said, such criminal activities can only burn infrastructure but they cannot burn the dreams, 'the dreams to rise and touch the sky.'
(Originally published at NepalKhabar: https://en.nepalkhabar.com/news/detail/15366/)
