KATHMANDU: Nepal’s economy has begun to feel a serious and negative impact from the Gen-Z protest, with foreign investment commitments plunging sharply in the two months following the protests of September 8 and 9.
Official data published by the Department of Industry shows that foreign investment pledges, which stood at Rs 8.98 billion in August, shrank dramatically to Rs 2.04 billion in September, and further collapsed to just Rs 1.54 billion in October. The figures reflect a steep and sustained drop compared to earlier months.
In August, before the unrest began, Nepal had received Rs 24.10 billion in foreign investment commitments, more than three times higher than September’s inflow. Officials say the Gen-Z protests, which saw widespread unrest, violence, and severe disruption to business operations, have dented investor confidence, particularly in the industrial sector.
Despite the sharp decline in the last two months, Nepal received a total of Rs 36.68 billion in foreign investment commitments in the first four months of the current fiscal year.
According to the department, the commitments span 7 large industries, 6 medium-scale industries, and 369 small-scale industries. The information technology sector accounts for the highest share of pledges at 54 percent, followed by the tourism sector at 31 percent.
The data indicates that while foreign investors continue to explore opportunities in Nepal, the fallout from the Gen-Z movement has raised significant concerns about political stability, security, and policy predictability, factors critical to sustaining investment momentum.
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