The protests in Nepal in the past have given a shock to the country’s economic situation. The violence, arson and sabotage caused by the Gen-G movement have caused loss of billions. About 10,000 people have become unemployed and major tourist places like Durbar Square, Pokhara, Bhairahwa and Chitwan have been vacant. The number of people coming on Kailash Mansarovar Yatra has also decreased rapidly.
The current time of Nepal is usually of the tourist season, where a large number of people come to visit. A large number of migrants return to their country during this period and strengthen local trade. This strengthens Nepal’s economy. However, this time nothing like this seems to be happening. The biggest reason behind this is being considered as the Gen-G movement.
Arabian shock to the economy
According to the report of Kathmandu Post, Nepal’s economy has lost about 3 lakh crore rupees due to the movement, which is equal to the budget amount of one and a half years of the country. Government and private infrastructure have also suffered heavy damage. Economists estimate that the economic growth rate this year can go below 1%. Also, due to the upcoming elections, the government will also have an additional burden of Rs 30 billion.
Impact on industry
Nepal’s big business groups and taxpayers have also come under the grip of this crisis. Bhat-Bhatni Supermarket and Chaudhary Group have lost crores. The ENSEL telecom company also suffered heavy damage. According to the Hotel Association Nepal, the hotel business has lost about Rs 25 billion, while the auto sector has estimated a loss of about Rs 15 billion. However, many entrepreneurs have committed reconstruction. Bhat-Bhatni wrote in his message that he would return to a more strong, while Chaudhary Group Director Nirvana Chaudhary also spoke of reconstruction and better future.
Fall of tourism industry
Tourism is the major basis in Nepal’s economy. There is a big income in festivals and holidays, but this time the situation is completely opposite. Hotels, restaurants, airlines and travel agencies are empty. There is more silence than normal at sites like Durbar Square and Pokhara. The decline in the number of tourists has directly affected the livelihood of millions of people. According to hotelier Yogendra Shakya, the real challenge is to restore political stability in the coming months. If the situation does not improve, then the tourism industry will be affected for a long time.
Political stability and future
Before the elections to be held in March 2026, the Nepal government will have to face economic pressure. The trust of investors has also weakened due to political instability. However, the appointment of a new Prime Minister has raised hopes of reform. The industry believes that if political stability comes back, Nepal will be able to rebuild and the economy can gain momentum again.