24th September 2025, Kathmandu
The recent Gen Z movement in Nepal has had a significant impact on the country’s investment climate.
GenZ Movement Investor Confidence
CNI President Birendra Raj Pandey has warned that the protests have not only damaged public and private infrastructures but also weakened investor confidence, leading to serious economic consequences.
Economic Loss and GDP Impact
Speaking at a discussion program organized by the Nepal Economic Journalists Association under the theme “The Road Ahead for Economic Recovery,” Pandey revealed that Nepal’s economy has suffered a 5% loss in Gross Domestic Product (GDP) due to the ongoing unrest.
According to the CNI President, industries alone have faced a substantial setback. He emphasized that investors value security above all, and the government must take immediate action to guarantee investment protection.
Need for Government Action
Pandey highlighted that Nepal must adopt both short-term and long-term strategies to recover from this crisis. Large industries, he suggested, should be given specific timelines and relief packages.
“CNI has already recommended reforms in various laws. It is necessary to draft laws that are simple, clear, and easy to understand,” Pandey said, stressing that streamlined regulations are vital for economic growth.
Reforming Education for Long-Term Growth
The CNI President also pointed out the inefficiencies in the education system. While significant investments are being made in the sector, the returns remain very low. He recommended introducing effective facilities and incentives to ensure that investments in education yield meaningful results.
Investment Blocked by Gen Z Protests
Pandey further disclosed that a major joint venture investment was on its way into Nepal but was halted due to the Gen Z movement. This, he said, is a worrying signal for both domestic and international investors.
Priority Sectors for Nepal’s Future
Looking ahead, the CNI President called for a strategic focus on energy, tourism, education, and agriculture as priority sectors that could accelerate Nepal’s economic recovery and attract sustainable investment.
For more: GenZ Movement Investor Confidence