Nepal Protests Disrupt Economy, Markets, and Key Industries

 

Nepal’s ongoing Gen Z–led protests have escalated into a severe economic disruption, impacting nearly every sector.

The Nepal Stock Exchange (NEPSE) suspended trading due to curfews, while banks and financial institutions closed, paralyzing financial activity across the country. Gold prices soared to a record Rs. 214,700 per tola, reflecting investor uncertainty, while silver prices also rose. Businesses were hit with penalties as the Department of Commerce fined 126 firms for regulatory violations, further straining the private sector. The crisis has heavily disrupted logistics and aviation. The National Federation of Nepal Transport Entrepreneurs suspended all public and freight transport services indefinitely, and Tribhuvan International Airport saw widespread cancellations and diversions due to smoke and unrest.

Key Highlights

• NEPSE halted trading; banks and financial institutions closed
• Gold prices hit record highs as protests triggered uncertainty
• Transport, aviation, and major businesses faced severe disruption

A Himalaya Airlines flight from Lhasa was rerouted to Pokhara, underscoring risks to international connectivity.

Major businesses also suffered direct damage. Protesters set fire to the Bhatbhateni Superstore in Naxal and attacked the Chaudhary Group (CG) factory in Satungal, looting and destroying goods. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Independent Power Producers’ Association (IPPAN) condemned the violence and urged reforms.

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Meanwhile, long-term structural shifts are visible, with 76,000 Nepali youths securing labor permits for Europe in FY2024/25, signaling a migration trend away from Gulf nations. The unrest underscores deep systemic discontent while amplifying pressures on Nepal’s fragile economy.