Kathmandu, Aug 18: The government has issued the ‘Private Investment Protection and Promotion Strategy’ aiming to boost investor confidence while securing, protecting, and promoting private sector investment.
The government has made it clear that a strategy has been introduced to create an environment where the private sector can invest with high morale for rapid economic growth and job creation in the country.
The strategy has prioritized the physical security of investors and industrial and commercial structures, asset protection, economic recovery, legal and regulatory simplification, investment protection and promotion, and the development of entrepreneurship among the youths.
The Government of Nepal, Council of Ministers approved a list of 100 governance reform tasks on March 27 which included a work plan to formulate and implement a strategy for the protection and promotion of the private sector.
The strategy was approved and implemented according to that work plan. It is expected that implementing the strategy will ensure the protection and security of industrial and commercial investments, boost the morale of the private sector, and contribute to the overall development of the economy.
The main goal of introducing the strategy is to address the impact on industries and businesses caused by various movements, protests, shutdowns, strikes, and socio-political instability.
The ongoing strategy mentions that during protests, there are instances of looting and arson in and around industrial areas, which disrupt industrial operations and directly or indirectly affect production and management processes.
The National Planning Commission (NPC) has estimated that around Rs 84 billion worth of physical property was damaged to public assets, physical infrastructure, and private establishments during the protests on September 8 and 9, 2025.
In this context, a study conducted by Tribhuvan University also suggested drafting an Industrial Security Bill to declare industries and businesses as ‘peace zone’ and to ensure the protection of industries during protests and similar situations.
The government aims to ensure the security of industrial establishments, banks and financial institutions, small and medium enterprises, and the service sector through strategy. The strategy’s goal is to build a safe, stable, and reliable business environment by increasing coordination between security agencies, government mechanisms, and the private sector.
The strategy includes plans to gradually set up an industrial security force to protect the physical assets of industrial and commercial establishments. It also states that the existing legal provisions related to industrial safety will be reviewed and amended as needed.
The strategy also mentions declaring industrial corridors, industrial zones, special economic zones, and industrial villages as ‘peace zones’ and ensuring that no untoward activities take place there.
The government plans to classify industries and businesses based on security risks and provide security accordingly.
According to the strategy, a rapid security team will be deployed based on the risks of industries and businesses, and a security contact person will be appointed in the nearby security unit for the industries and businesses.
Similarly, a zero-tolerance policy will be adopted in case of attacks, vandalism and arson on industrial and commercial establishments. The same policy will be applicable to attacks and vandalism on private property and residences of industrialists and entrepreneurs.
The strategy has set up a special search campaign to return goods looted from industrial and commercial establishments during the movements and riots. Continuous security patrols will be deployed on highways and strategic routes to ensure the uninterrupted supply of goods and services.
Similarly, it is mentioned in the strategy that the ‘hotline’ at each district’s District Emergency Operation Center and the Provincial Emergency Operation Center will also be operated as an industrial safety ‘hotline’ 24 hours a day.
The strategy incorporates the provision about the formation of a District Industrial and Commercial Security Coordination Committee coordinated by the Chief District Officer. The Committee comprises the heads of security agencies in the district and representatives from business community.
The strategy shall regularly review and analyze the industrial security challenges of the district.
Similarly, the government has pursued a policy of providing relief and concessions to private industries and businesses in case of suffering the incidents of arson or vandalized due to the protests.
According to the strategy, businesses affected by the protests may be granted a one-time exemption on fees incurred during the renewal of business registrations or licenses. In addition, map- pass fees, electricity and drinking- water connection fees, and integrated property taxes can be waived for industries and businesses that require reconstruction, subject to specified criteria.
It states about the provision of granting a one-time concession, being based on certain criteria, in integrated property tax as well.
In accordance with the strategy, the Environment Regulations and other laws will be amended, requiring only a preliminary environmental assessment while shifting damaged industries or businesses to a new location.
Similarly, arrangements will be made to disburse concessional loans from banks and financial institutions for the revival of damaged private industries and businesses.
It has prioritized the simplification of regulatory processes for investors. The government plans to further simplify the process of registering industries and businesses by establishing interconnectivity among the electronic systems of the Department of Industry, the Department of Commerce, Supplies and Consumer Protection, and the Office of the Registrar of Companies.
The strategy has proposed to determine at least a two-layer difference in the customs duty for raw materials and the readymade imports so as to encourage industrialization and employment creation.
Similarly, it has proposed to stabilize concessions and facilities granted as per the tax policies and law at least for five-years, incorporating the matter of promoting mine-based industries.
It states that timely revisions will be made in laws relating to mines and minerals, forest and national parks, environment, land and the operation of local governance, aiming to make arrangements for granting permission for mining exploration and excavation, forest land tenure, environmental impact assessment approval, tree felling and land-related work in mining areas through the Department of Mines and Geology.
Likewise, a strategy has focused on the reduction of business ‘logistics’ costs by mobilizing investment through the Public-Private Partnership (PPP) ‘model’ in the construction and operation of public infrastructure.
The government has also identified micro, cottage, and small industries, along with startups, as important components of its strategy. It has proposed arrangements to implement entrepreneurship development and employment-generation programs at the local level through cost-sharing among the three tiers of government. In addition, the strategy aims to reduce business logistics costs by mobilizing investment through the Public-Private Partnership (PPP) model for the construction and operation of public infrastructure.
