KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The Gen-Z-led unrest in Nepal has triggered a severe economic and institutional crisis, dealing a major blow to the private sector, disrupting essential services, and paralyzing national infrastructure. High-profile arson and looting incidents—including the destruction of properties owned by business leaders like Binod Chaudhary and the burning of the Hilton Hotel—underscore the scale of targeted violence.
Transport and customs operations remain stalled, curtailing cross-border trade and halting domestic distribution. Meanwhile, sectors such as banking, insurance, tourism, and electricity are struggling to maintain basic services under curfew.
Although authorities assure adequate supplies of fuel and food, the shutdown of markets just before Nepal’s major festive season has cast a shadow over the economy. With billions in property damage, thousands of jobs at risk, and continued institutional appeals for stability, the crisis represents one of the gravest challenges to Nepal’s economic and social resilience in recent history.
Private sector suffers billions in damages during Gen-Z unrest
The private sector has been hit hard by looting, arson, and targeted attacks during the nationwide protests. Notably, the private residence and office of billionaire Binod Chaudhary were looted and set on fire. Twelve Bhatbhateni supermarket branches built by Min Bahadur Gurung were looted and torched, with additional locations also vandalized. Over half a dozen vehicles were burned.
NOC says fuel stock sufficient despite border disruption
Nepal Oil Corporation (NOC) has assured the public that petroleum supplies remain stable across the country. Executive Director Chandika Prasad Bhatta stated that fuel supply through customs points resumed today. While India had tightened border restrictions following the escalation of Gen-Z protests earlier in the week, Bhatt confirmed that pipeline supply was not affected.
Tribhuvan airport reopens after temporary closure
Tribhuvan International Airport, which was shut down Tuesday afternoon due to safety concerns, resumed operations on Wednesday evening. The decision was made by the Airport Security Committee. General Manager Hansaraj Pandey confirmed a surge in passenger flow following the reopening. The airport had been closed since 3:30 p.m. Tuesday amid intensifying protests.
Food Management Company reports Rs 150 million in losses during protests
Food Management and Trading Company Limited reported losses of approximately Rs 150 million due to looting during Tuesday’s Gen-Z protests. According to CEO Ramesh Kumar Acharya, depots across the country were damaged, with the main branch in Lahan, Siraha suffering the worst hit—losing food stocks worth more than Rs 130 million.
Transport services remain suspended amid ongoing curfew
Public transportation across Nepal remains suspended indefinitely due to curfews and prohibitory orders enforced in response to the Gen-Z movement. The Federation of Transport Entrepreneurs of Nepal announced the suspension began Tuesday. Only emergency vehicles—including ambulances, fire engines, and supply carriers—are operating. Senior Vice President Saroj Sitaula said the sector remains in limbo, with no clear direction on next steps.
Biratnagar Customs operations suspended for four days
The Biratnagar Customs Office has been completely shut for four days, halting customs clearance activities. As a result, more than 300 Nepal-bound trucks remain stranded, unable to cross into India. Similarly, cargo trucks carrying industrial raw materials have been held at Jogbani ICP.
Markets paralyzed ahead of festive season
Since Tuesday, the Nepali market has come to a standstill due to the Gen-Z movement. Economists warn that this disruption—coming just before the major Dashain, Tihar, and Chhath festivals—will have a serious impact on consumer spending and the national economy. The seasonal economic boost expected this time of year has stalled entirely.
Central bank governor’s residence destroyed by fire
The home of Nepal Rastra Bank Governor Biswo Nath Poudel was set on fire by demonstrators on Tuesday. Located in Bhaisepati, the house—built with years of savings and scholarships—was completely destroyed. Governor Poudel shared a video of the destruction on social media, expressing sorrow over the loss.
Insurance Authority urges smooth processing of claims
The Nepal Insurance Authority has called on insurance companies to process claims efficiently for property damaged during the protests. A notice issued Thursday highlighted that both public and private sectors have incurred severe losses since the outbreak of unrest on September 8.
Hilton Hotel in Naxal completely destroyed in fire
The Hilton Hotel in Naxal, Kathmandu—built at an estimated cost of Rs 8 billion—was burned to the ground during the protests. The fire, which raged for two days, was difficult to extinguish due to the building’s height. The hotel was reportedly targeted because Jaiveer Deuba, son of former Prime Minister Sher Bahadur Deuba, is among its investors.
FNCCI convenes emergency meeting to address crisis
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) held an emergency Zoom meeting to address the unfolding crisis. According to attendees, FNCCI called on entrepreneurs to stay resilient, keep businesses running where possible, maintain jobs, support law and order, and provide help to those affected.
Billions lost, thousands of jobs threatened in private sector
The ongoing unrest has resulted in billions of rupees in damages and widespread job losses. The private sector, previously instrumental in reducing labor migration, now faces a major setback. The destruction of Bhatbhateni outlets alone has affected over 2,000 jobs, while the Hilton Hotel fire displaced more than 200 workers.
Nepal Rastra Bank urges banks to maintain essential services
Nepal Rastra Bank has directed banks, development banks, finance companies, and payment service providers to continue providing essential services during the ongoing curfew. In a public notice issued on September 10, the central bank instructed financial institutions to operate with limited staff to ensure uninterrupted services despite restrictions imposed by the Nepal Army.
NEA seeks support to restore power
The Nepal Electricity Authority (NEA) has appealed for cooperation to repair damaged transmission and distribution lines. In a public notice on Wednesday, the NEA highlighted operational challenges due to the ongoing crisis and requested assistance from concerned authorities to restore electricity services across the country.
Financial sector disrupted but remains stable overall
The banking, insurance, and stock market sectors have experienced disruptions over the past three days amid nationwide protests. Several bank branches and ATMs were vandalized in Kathmandu and other major cities, affecting customer services. Despite these incidents, Nepal Bankers’ Association Vice President and Global IME Bank CEO Surendra Raj Regmi stated that the overall banking system remains secure and operational.
Fuel, gas, and food stocks remain sufficient
Authorities have confirmed that supplies of fuel, cooking gas, and food grains are adequate, despite temporary disruptions caused by the protests. State-run agencies—including Food Management and Trading Company Limited, Salt Trading Limited, and Nepal Oil Corporation—reported that existing stocks are sufficient to meet demand through the upcoming Dashain festival. The ongoing curfew, enforced since Monday, is expected to continue until Thursday morning.
Tourism board helps foreign tourists travel during crisis
The Nepal Tourism Board is working to ensure safe travel for foreign tourists amid ongoing unrest. CEO Deepak Raj Joshi announced that shuttle buses have been arranged in coordination with the Nepal Army and the Civil Aviation Authority to transport tourists to and from key destinations. Efforts are also underway to ensure tourists face minimal disruption during their stay.
Crowd gathers at Deuba’s burnt home, hoping to find valuables
A large group of people gathered at the burned residence of former Prime Minister and Nepali Congress President Sher Bahadur Deuba. Curious onlookers and local residents were seen searching through the remains of the destroyed house, reportedly looking for items of value. Many expressed disbelief, noting that they had never seen the property up close until now.
Comment