- Small investors face ruin as the stock market crashes, with daily turnover dropping significantly and billions in capital vanishing under current government policies.
- Industrialists are terrified by the government's "detain first, listen later" approach, leading to a halt in new investments and potential capital flight.
- Economic stagnation has caused a sharp decline in government revenue and production, accelerating the exodus of young people seeking opportunities abroad.
- Finance Minister Dr. Swarnim Wagle faces intense criticism for failing to restore public trust and economic stability during his first 100 days.
Kathmandu, Nepal: "The very person we looked to with hope has now left us stranded with his policies," said a small-scale retail investor from Kathmandu, wiping away tears.
This pain is not isolated to a single individual; it is a shared reality plaguing Nepal's economic sector as the newly formed government approaches its 100-day mark. Regardless of political maneuverings, the policy vacuum, distrust, and atmosphere of fear created in the Nepali economy during this period have deeply shaken everyone from ordinary citizens to major industrialists.
When Dr. Swarnim Wagle — a scholarly economist with an illustrious track record at prestigious global institutions — assumed office as Finance Minister, there was widespread anticipation of a new era of investment in the country. However, over the past 100 days, those hopes have not only turned into despair, but business leaders also allege that a reign of fear has gripped the economic sector due to policy ambiguity and the state's heavy-handed approach.
Livelihoods Extinguished as the Market Dims
The stock market, which once buzzed with immense vibrancy, now resembles a graveyard. Daily turnover, which previously peaked at NPR 20 billion, has shrunk to a meager 3 to 4 billion. Alongside the NEPSE index, the dreams and life savings of thousands of small investors have plummeted.
From elderly citizens who bought small amounts of shares using loans — hoping the returns would fund their medical expenses — to homemakers relying on the market to manage household expenses, many are now suffering from extreme mental stress. As the market continuously crashes, billions in capital have vanished. Veteran investors are exiting the market in frustration, while newcomers lack the courage to enter. Investors lament, "The government's harsh rhetoric and the regulatory body's silence have broken the market's backbone. Where there is no trust, how can capital survive?"
A Terrified Private Sector: "Arrest First, Listen Later"
Steps taken by the government under the guise of eliminating middlemen have terrified genuine, honest entrepreneurs the most. According to industrialists, the state has adopted an immature approach of "detaining first and listening later," which destroys decades of hard-earned professional reputation in a single moment.
A poignant remark by Anjan Shrestha, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), perfectly reflects the current agony of the private sector. He stated, "If Elon Musk were born in Nepal, he would be rotting in jail right now."
The arrests and crackdowns on established business figures such as Shekhar Golchha, Deepak Bhatt, Shankar Agrawal, Sulav Agrawal, and banker Jyoti Prakash Pandey have forced industrialists onto the defensive. Business leaders believe that the court's subsequent decision to release them on personal recognizance clearly exposes the government's haste and malice. Those who had planned to open new industries or expand businesses have backed off under a 'wait-and-watch' strategy, while some are even contemplating capital flight abroad.
Declining Revenue and Political Friction
The stagnation of domestic economic activity has directly hit the state treasury. Due to the stock market crash and the economic slowdown, government revenue has taken a massive hit. As production declines, job opportunities are vanishing, further accelerating the exodus of youths migrating abroad.
The heat of this crisis is now reaching the corridors of power in Baluwatar and Singha Durbar. Sharp discontent has escalated even within the ruling coalition partner, the Rastriya Swatantra Party (RSP), regarding the Finance Ministry's unpopular style of functioning. Finance Minister Wagle, who was viewed as a beacon of hope just a few months ago, is currently facing fierce criticism and encirclement from both the streets and parliament.
Meanwhile, the government maintains that it has only taken steps against anomalies to promote economic good governance. However, the emptying pockets of ordinary citizens and the fear visible on the faces of industrialists mock the government's claims. Experts warn that the government can no longer satisfy the nation merely by fixing statistics; it must first restore lost trust. After all, an economy is not just a game of numbers — it is a system that runs on the foundation of public confidence and morale.
