By Dipesh Ghimire
Nepal’s Economy Under Siege as ‘Gen Z’ Protest Turns Violent
Kathmandu – Nepal’s fragile economic recovery has been pushed back into crisis after a wave of violent protests led by the so-called ‘Gen Z’ movement erupted across the country. What began as demonstrations against corruption, inequality, and political leadership has escalated into widespread vandalism, looting, and arson targeting both state institutions and the private sector.
Systematic Attacks on State and Private Institutions
The protests, now in their fourth consecutive day, have gone beyond political anger and turned into direct assaults on the country’s economic and business foundations. Demonstrators deliberately attacked symbols of wealth, power, and international investment—burning down government offices, private residences of top politicians, and properties belonging to leading business figures.
Key government sites, including the Supreme Court, Singha Durbar (the administrative hub), the Federal Parliament building, and the President’s residence at Shital Niwas, were either vandalized or set on fire. Even the private homes of Prime Minister KP Sharma Oli and former leaders came under attack, highlighting the intensity of the unrest.
Private Sector Becomes the Primary Target
Beyond politics, the private sector has borne the brunt of the violence. Billionaire industrialist Binod Chaudhary, chairman of Chaudhary Group (CG), saw his personal residence in Ravi Bhawan looted and set ablaze, with several of his luxury vehicles burned in the streets. CG’s flagship factories and showrooms—including CG Digital Park in Satungal and automobile outlets in Thapathali—were destroyed. His brother Basant Chaudhary’s residence in Thamel was also vandalized.
Other leading business figures were not spared. The homes of FNCCI (Federation of Nepalese Chambers of Commerce and Industry) leaders such as Chandra Dhakal and Shekhar Golchha were attacked. Dhakal’s investment in Chandragiri Cable Car and Golchha’s Sitapaila residence were targeted, with vehicles and properties set ablaze.
The Nepal Rastra Bank Governor, Dr. Bishwanath Poudel, also faced attacks on his houses in Bhainsepati and Chitwan. Similarly, Ncell’s main office in Lainchaur—representing one of Nepal’s largest foreign investments—was burned, despite the telecom company’s appeal to protect essential services.
Landmark Destruction: Hilton Hotel Reduced to Ashes
One of the most symbolic losses came when protesters set fire to the Hilton Kathmandu, a five-star hotel developed under Shanker Group with an investment exceeding NPR 8.35 billion (approx. USD 60 million). The fire raged for nearly two days before firefighters extinguished it. Built over a decade and opened only last year, the hotel was a symbol of Nepal’s growing international hospitality market. Now reduced to rubble, the destruction has wiped out hundreds of jobs and severely shaken investor confidence.
Widespread Impact Across Industries
The protests also extended to other sectors:
Non-Resident Nepali Association founder Upendra Mahato’s residence was looted.
Golyan Tower at Baneshwor Heights was set ablaze.
Media houses such as Kantipur Media Group (Central Business Park), Annapurna Post (Corporate Tower, Tinkune), and Kantipur TV were torched.
Banking infrastructure, including branches of Himalayan Bank, Standard Chartered, and others located in affected buildings, suffered complete destruction.
Iconic retail chain Bhatbhateni Supermarket, previously attacked during monarchist protests, was once again looted and burned in multiple locations including Naxal, Maharajgunj, Koteshwor, Chitwan, Biratnagar, and Birtamod.
Tourism was also heavily impacted, with Hyatt Hotel Kathmandu, Sarovar Hotel Pokhara, and other resorts attacked, while airlines like Simrik Air reported damage to their offices.
Economic and Social Fallout
The violent turn of the Gen Z protest represents more than political discontent—it signals a breakdown of trust in state governance and law enforcement. By directly targeting private investors, multinational companies, banks, and media houses, protesters have not only destroyed billions in assets but also undermined the fragile investment climate Nepal was trying to rebuild after the pandemic.
Investor Flight – Both local and foreign investors may withdraw from Nepal, fearing insecurity.
Job Losses – Thousands of workers in hotels, retail, cable cars, airlines, and factories now face sudden unemployment.
Financial Sector Pressure – Attacks on banks and NRB officials raise questions about the safety of Nepal’s financial system.
Tourism Collapse – The destruction of international-standard hotels sends a negative signal to global tourists and travel operators.
Long-term Economic Instability – The billions lost in infrastructure and capital assets will take years to recover, potentially derailing Nepal’s already fragile economy.
The Gen Z protests, initially driven by legitimate grievances, have spiraled into one of the most destructive episodes in Nepal’s recent history. By indiscriminately targeting both government and private sector assets, the movement risks alienating the very population it claims to represent—ordinary citizens who will bear the brunt of economic instability, job losses, and rising insecurity. Unless immediately contained, this wave of violence could reverse decades of progress in Nepal’s economic development and international credibility.
