Three major private sector bodies in the country have expressed concern over recent arrests and legal action targeting business leaders, saying such moves are creating fear and discouraging investment.
The Federation of Nepalese Chambers of Commerce and Industry, the Confederation of Nepalese Industries, and the Nepal Chamber of Commerce issued a joint statement on Friday, warning that the business environment is being affected by what they describe as increasing pressure on entrepreneurs.
Their statement came shortly after a business leader, Shekhar Kholecha, was taken into custody by police earlier this week in connection with an economic offence case.
The private sector organisations said that recent actions against industrialists and entrepreneurs have created uncertainty at a time when the economy was expected to stabilise and attract new investment following the formation of a new government. They said such developments risk weakening confidence among investors and could have wider effects on jobs, revenue generation, supply chains, and infrastructure growth.
They also stressed that the private sector contributes the majority share of the economy and employment, and any instability in this space could have broader national consequences.
At the same time, the organisations clarified that they do not oppose legal action if wrongdoing is proven. However, they urged authorities to follow due process, suggesting that arrests should be made only after proper investigation and confirmation of evidence, especially in economic cases.
They also highlighted that many business leaders have expressed willingness to cooperate with investigations and appear when called by authorities, and therefore arresting them prematurely has caused concern across the business community.
The statement further noted that the government has already been working on policies to support and protect the private sector, and recent actions appear to contradict that direction.
The organisations urged the government to ensure a safe and predictable environment for investment, stressing that economic recovery depends on restoring confidence among entrepreneurs and investors.