Two months have passed since the Gen Z protest of September 8–9 that shook Nepal’s political foundation, toppled the KP Oli-led government, and resulted in the dissolution of the House of Representatives (HoR). The tragic loss of more than 72 lives-45 of whom have been declared martyrs-and the widespread destruction of public and private property stunned the nation.

As political parties continue to assess the causes and consequences of the unprecedented attacks on the legislature, executive, and judiciary, the interim government-tasked with conducting the HoR elections on March 5-has intensified preparations. Engagements with major political stakeholders are gradually gaining momentum.

But among the hardest hit was Nepal’s private sector, which is still struggling to recover. Industrialists and entrepreneurs who suffered immense losses in arson and vandalism are urgently seeking reassurance and support from the government.

Major business establishments, including the Hilton and Bhatbhateni Supermarket, were engulfed in flames. Their destruction not only caused massive financial losses but also eliminated countless jobs overnight. In a televised interview, Bhatbhateni’s owner, Min Bahadur Gurung, broke down in tears, emotionally recounting the devastation. Similar scenes played out across the country, with property worth billions reduced to ashes, leaving investors fearful about continuing operations within Nepal. Business owners-small and large alike-are now demanding guarantees of security for their enterprises.

Political Shock Deepens Economic Woes

Although the political vacuum was quickly addressed by the President through the formation of an interim government, the economic repercussions remain severe. Restarting damaged industries requires both financial support and policy flexibility. More importantly, restoring the shattered morale of investors is crucial.

Nepal’s economy, already burdened by youth migration, brain drain, limited job creation, overdependence on remittances, neglect of agriculture, and poor governance, has now been hit with a dual crisis-political and economic. Frequent government changes under the federal system and the leadership’s failure to align policies with youth aspirations have further eroded economic stability.

Despite repeated political rhetoric around “revolution” and “struggle,” tangible progress toward an economic transformation remains absent. Whether branding themselves socialist, communist, or democratic, political parties have collectively failed to deliver the economic results citizens expected.

Infrastructure Neglect Adds to Concerns

National pride projects such as the Gautam Buddha International Airport and the Pokhara International Airport remain underutilized. Business owners in Bhairahawa consistently blame political leadership for failing to operationalize these mega infrastructures. In a recent incident, even when Tribhuvan International Airport encountered problems, international flights diverted to neighbouring countries instead of Nepal’s newly built international airports-deepening frustration among local investors.

A Nepal Rastra Bank report revealed that even Bagmati Province, home to the federal capital, lacks a reliable road network, severely affecting transport and commerce. Climate-induced disasters have also damaged vital infrastructure, threatening economic resilience.

These shocks have implications for Nepal’s annual growth targets, development plans, foreign direct investment, LDC graduation goals, and climate commitments.

Austerity Measures and Governance Efforts

Amid this backdrop, the interim government-despite its primary mandate of conducting elections-has initiated steps to address economic challenges. Finance Minister Rameshwor Khanal has introduced strict austerity measures to control unnecessary spending, reduce political appointments, and improve budget efficiency. The government has also undertaken legal action against corrupt leaders, aligning with one of the key demands of the Gen Z movement. Such actions signal a shift toward accountability and good governance, essential for economic revival.

Collaboration Among ‘Engineer, Engine, and Fuel’

The private sector has been urging the government to create a conducive environment for investment and industrial revival. At the “National Economic Dialogue 2.0,” Prime Minister Sushila Karki emphasized the collaborative role of all stakeholders in nation-building.

She described: Nepali citizens as the “engineers”, the government, society, and system as the “engine”, and industrialists, entrepreneurs, and workers as the “indhan (fuel)” of the national economy.

“I believe private sector industries are the foundation of economic prosperity,” PM Karki said, affirming the government’s commitment to supporting business revival.

If the interim government-despite its limited four-month window-acts decisively to restore confidence, ensure security, and support private sector recovery, it could lay the groundwork for a more resilient and revitalized economy. After all, economic strength is not measured only by policy but by the government's ability to deliver results on the ground.