Economists have argued that while the Gen Z protest caused significant physical and economic damage, it also presents a chance for a “course correction” to boost private sector morale and strengthen Nepal’s long-term economic development.
Speaking at a virtual interaction organized by the Society of Economic Journalists-Nepal (SEJON) on Current Economic Challenges and the Way Forward, experts stressed that the movement—rooted in frustrations over misgovernance and corruption—should be used constructively.
Former Finance Secretary Rameshwar Khanal said the nationwide awakening against corruption, led by the younger generation, is a positive development. “The unified stand against corruption under the leadership of the younger generation is a significant achievement. Issues like constitutional amendments come later,” he said. He urged the government to prioritize reconstruction, create new investment opportunities, and rebuild investor confidence.
Khanal also noted that because the crisis was man-made rather than a natural disaster or pandemic, international aid may be limited. Drawing parallels with past internal crises in the 1980s and during the Maoist conflict, he argued that recovery this time will be faster. “The fact that stability returned by the third day of protests is a positive sign,” he added, stressing that the demonstrations sent a strong signal to authorities on governance reforms.
Economist Dr. Sameer Khatiwada echoed this view, saying the protests challenged crony capitalism and called for governance guided by transparency and accountability. “It’s also an opportunity to help remove Nepal from the FATF grey list,” he said.
Khatiwada noted that while some tourism infrastructure faced minor damage, the sector retains high potential if supported by accurate and responsible media coverage. He further emphasized that foreign direct investment—which currently makes up just 0.3% of GDP—will not see major disruption, but increasing it should be a policy priority.
Both experts agreed that Nepal must seize the moment to implement open, transparent, and independent economic policies, turning the disruption into a foundation for stronger recovery.
