Kathmandu— The Government of Nepal recently implemented the ‘Private Investment Protection and Promotion Strategy,’ a comprehensive initiative designed to bolster investor confidence and stimulate economic development across the country. Approved by the Council of Ministers on March 27th following a list of 100 governance reform tasks, the strategy addresses concerns about security risks, regulatory hurdles, and socio-political instability that have historically impacted private sector investment. The plan prioritizes physical security for businesses, legal simplification, entrepreneurship among youth, and economic recovery, aiming to create a more stable and reliable environment for both domestic and foreign investors.

Addressing Past Disruptions

The strategy is largely a response to recent disruptions caused by protests, strikes, and socio-political instability that have resulted in significant damage to industrial and commercial properties. The National Planning Commission estimates approximately Rs 84 billion (approximately $630 million USD) worth of physical property was damaged during demonstrations on September 8th and 9th, 2025. Recognizing a pattern of looting and arson targeting industrial areas during periods of unrest, the government seeks to proactively mitigate these risks.

Enhanced Security Measures

A core component of the strategy involves strengthening security measures for businesses. Plans include establishing an industrial security force dedicated to protecting physical assets, declaring industrial zones as ‘peace zones’ where disruptive activities will not be tolerated, and deploying rapid response teams based on assessed risk levels. A zero-tolerance policy will be enforced against vandalism, arson, and attacks on private property or the residences of business owners. The government also intends to establish a 24/7 ‘hotline’ at district and provincial emergency operation centers specifically for industrial safety concerns.

Regulatory Simplification and Financial Relief

Beyond security, the strategy emphasizes streamlining regulatory processes to encourage investment. This includes interconnecting electronic systems between key departments – Industry, Commerce, Supplies & Consumer Protection, and the Office of the Registrar of Companies – to simplify business registration. The government also plans to offer financial relief to businesses affected by protests, potentially waiving fees for license renewals, map-pass fees, electricity/water connections, and property taxes for reconstruction efforts. Concessional loans will be made available through banks and financial institutions to aid in the revival of damaged industries.

Long-Term Industrial Development

The strategy also outlines long-term plans to foster sustainable industrial development. This includes amending environmental regulations to expedite relocation of damaged businesses, stabilizing tax concessions for at least five years, and revising laws related to mining, forests, and land use to streamline permitting processes. The government will also prioritize reducing business logistics costs through public-private partnerships in infrastructure development and support entrepreneurship programs at the local level.

Focus on Micro and Small Enterprises

Recognizing the importance of small businesses, the strategy specifically targets micro, cottage, and small industries, as well as startups. The government proposes cost-sharing arrangements between all three levels of government – federal, provincial, and local – to implement entrepreneurship development and employment generation programs. This demonstrates a commitment to inclusive growth and supporting a diverse range of businesses.

The implementation of this strategy is expected to be regularly reviewed by District Industrial and Commercial Security Coordination Committees coordinated by Chief District Officers, ensuring ongoing assessment of challenges and adaptation of security measures.

Originally published on abcnews.com.np.