Minister Sinha Warns Eroding Investor Confidence Poses Greater Threat Than Physical Losses

Kathmandu — Nepal’s Interim Industry Minister Anil Kumar Sinha said investor confidence eroded by the Sept. 8–9 unrest is more alarming than the NPR 3.4 billion in direct physical losses, underscoring deep economic anxiety gripping the private sector.

Speaking at a symposium hosted by Clickmandu, Mr. Sinha described the private sector as the backbone of the economy — contributing roughly 81 percent of gross domestic product and generating 85 percent of employment — and warned that without a sense of security, sustainable growth would remain out of reach.

He noted that the upheaval on September 23 and 24 inflicted about NPR 81 billion in indirect economic losses on businesses beyond the immediate NPR 34 billion in physical damage.

Mr. Sinha acknowledged that the early days after the unrest felt like “a government without a state,” but said the security situation has improved and the interim administration was working on policy reforms to restore investor morale.

He also pointed to inconsistencies in customs duties on raw materials and finished goods, suggesting that vested interests had distorted tariffs, and stressed that weak courts and dispute-resolution mechanisms must be strengthened to foster a more investment-friendly environment.