Nepal Needs Change: Protests Must Transition To Productivity And Renewal
Nepal's dependence on remittances and decades of corruption, unemployment, and political stagnation came to a head during the Gen Z protests, which cost the lives of 72 people. Their sacrifice must lead to a ten-pillar change that turns vandalism into rebuilding, corruption into trust, and protest into the start of Nepal's renewal.

The Gen Z protests of 2025 didn't happen all at once. They were the result of a decade of growing frustration: high youth unemployment, deepening corruption, and a political cycle with the same old faces. People all over the world are against incumbents, and this feeling was also felt in Nepal as young people turned away from a system that didn't give them any chances or trust. The government decided to ban social media, which was the main place where young people could speak out and be held accountable. This was the immediate cause. A feeling of dissatisfaction that had been building turned into a movement that spread across the whole country.
The deaths of 72 people, who were later called martyrs, showed how much it costs to ignore these structural problems. It was good that interim Prime Minister Sushila Karki recognized the victims and talked about relief efforts, but they can't fix the whole problem on their own. The protests have shown that Nepal can't keep going down a path of relying on remittances, recycling politicians, and letting corruption go unchecked. The next step is to rebuild not only the damaged infrastructure, but also the trust of the people and the productivity of the country.
In the fiscal year 2023/24, Nepal received over NPR 1.4 trillion in remittances. This amount represents almost 26% of the country’s GDP, according to the World Bank. As a result, Nepal is now one of the most remittance-dependent economies in the world. It even surpasses countries like the Philippines and Bangladesh in proportional terms. While remittances have helped stabilize foreign exchange reserves and reduce poverty, the long-term consequences are concerning. These include labour flight, low domestic productivity, and structural stagnation. Nepal’s economic future cannot rely solely on exporting labour. It needs to focus on creating value at home, fostering innovation, and improving productivity.
The time has come for a national economic shift. This change requires more than just slogans; it needs a clear, evidence-based planning roadmap, one that rebuilds Nepal into a productive, corruption-free, and globally credible economy. This is also the mandate of the Gen Z generation, whose protests have demanded jobs, transparency, dignity, and an end to the cycle of corruption and stagnation.
Ten pillars for a post-protest Nepal
National reconstruction and infrastructure renewal
The protests left behind damaged government buildings, the parliament building, and city infrastructure. They also showed that Nepal has long had problems with its connectivity, energy, and public services. Reconstruction should be seen as a project to build a nation, not just fix walls. It should also include rebuilding the foundations of a productive state. Restoring government and civic buildings, improving transportation and digital infrastructure, and expanding reliable public services that directly support economic activity should all be top priorities. Public-private partnerships, diaspora bonds, and concessional loans from multilaterals can help raise money. Credibility, on the other hand, depends on open procurement, third-party audits, and citizen oversight. When done right, rebuilding can turn the scars of protest into the building blocks of a Nepal that is productive, free of corruption, and respected around the world.
Agricultural modernization and digital transformation
Nepal’s agriculture sector still employs over 60% of the population but contributes less than 26% to GDP. Productivity is very low. Cereal yields are around 3.2 tons per hectare, while China achieves 6.3 tons and Bangladesh 5 tons. The sector struggles with outdated tools, small and scattered landholdings, climate shocks, and limited access to credit and markets. To change this, Nepal needs to view agriculture as a growth engine rather than just a means of survival. Government policy should focus on improving access to irrigation, mechanization, crop insurance, and soil health services. Promoting digital tools is essential, as well as weather advisories, satellite-based pest tracking, and e-market platforms like GeoKrishi or e-Shiksha. Encouraging young Agripreneurs by incorporating agriculture into TVET (Technical and Vocational Education and Training) programs and startup initiatives is also crucial. Countries like Rwanda demonstrate that agriculture can drive productivity with the right investment. Between 2007 and 2011, Rwanda substantially increased its agricultural productivity through consistent policy, land reform, and technology adoption.
Industrial revitalization and SME development
Nepal’s industrial contribution to GDP has fallen from 20% in the 1990s to under 13% in 2023. At the same time, imports of manufactured goods, clothing, electronics, and processed food have risen sharply. This indicates deindustrialization without a prior phase of industrialization. To address this, Nepal needs to take the following steps: Identify priority sectors such as agro-processing, herbal products, handicrafts, construction materials, and light engineering. Upgrade Special Economic Zones (SEZs) with electricity, roads, and streamlined processes to attract both domestic and foreign investors. Ease the compliance demands for SMEs, which represent over 90% of businesses but struggle with bureaucratic challenges in obtaining finance and reaching markets. Launch a Made-in-Nepal brand with proper quality checks and efforts to promote exports. We can learn from Vietnam, which incorporated small enterprises into global value chains and increased its manufacturing GDP by a substantial amount in two decades (World Bank, 2024).
Human capital for the Digital economy
Nepal's labour force lacks the skills needed for the global market. A Study shows that only 13% of Nepali youth have any type of technical or vocational training. Most migrant workers are low-skilled, which leads to lower wages and greater exploitation. Nepal needs to build a modern workforce. The country should invest in expanding Technical and Vocational Education and Training (TVET) in areas like renewable energy, digital agriculture, AI, healthcare, and construction. It should set up digital learning hubs in provinces through public-private partnerships. Skills for online freelancing, such as programming, design, and translation, should also be promoted to access the $3.7 trillion global gig economy. The Philippines, for example, created a Technical Education and Skills Development Authority (TESDA) that provides micro-certifications to over a million youth each year. Nepal can adopt a similar model with the help of development partners and diaspora funding.
Returnee reintegration and diaspora investment
Over 5 million Nepalis live abroad. Many return with experience, skills, and savings, but they find no support from institutions. This is a missed chance. Nepal needs to create a Returnee Integration Strategy that includes: a Returnee Entrepreneurship Fund offering loans, mentorship, and business incubation; a Diaspora Investment Board to aid investments in real estate, infrastructure, and startups using clear methods like diaspora bonds or public-private partnerships; and local governments should identify returnee skills and provide specific support for reintegration. Bangladesh’s success with diaspora bonds and Sri Lanka’s programs for returnees after conflict demonstrate that focused reintegration policies can attract millions in investment and create jobs.
Governance and institutional reform
Without institutional change, all roadmaps fail. Nepal’s planning institutions need to be vision-driven, evidence-based, and able to execute plans. Urgent reforms include revamping the National Planning Commission (NPC) into an independent, tech-enabled body that focuses on long-term productivity rather than just budgeting. We need to digitalize public services to cut red tape, reduce corruption, and improve transparency. Strengthening provincial governments with fiscal autonomy and the ability to create local economic strategies is essential. Establishing a Productivity and Innovation Commission will help evaluate the impact of public spending. Countries like South Korea and Singapore built their success on strong state institutions where planning was a priority rather than a ritual. Nepal needs to establish fast-track anti-corruption courts. Corruption is no longer just an economic cost; it is an existential threat to legitimacy.
Tourism revival and global confidence
Tourism, which made up almost 7% of GDP before the pandemic, is very sensitive to how safe people think it is. Vandalism of historic sites and pictures of unrest could keep people from coming. Reconstruction should put heritage restoration, tourist police, and safety insurance guarantees at the top of its list of things to do. There should be a global campaign called "Nepal Reborn: Safe, Peaceful, Welcoming" that uses embassies and the internet. Eco-tourism and adventure tourism, which are in line with trends in sustainable travel, can help Nepal's image quickly. Bringing back tourism isn't just about making money; it's also about showing the world that Nepal is safe and open.
Social cohesion and youth inclusion
Seventy-two martyrs should be remembered as people who helped bring about change, not as people who were killed by carelessness. Justice necessitates open investigations, prompt restitution, and responsibility for misconduct. A National Youth Council for Reconstruction can turn the energy of protests into a way for young people to have a say in policy. Most importantly, social media should not be banned. Digital platforms are not a threat; they are ways for young people to be held accountable and be creative. The state can restore trust and cohesion by listening instead of silencing.
Green economy and climate resilience
Nepal is the fourth country in the world most at risk from climate change, losing 1–2 percent of its GDP each year to disasters. Reconstruction is a chance to build resilience. National priorities should be expanding hydropower (which has the potential to generate 83,000 MW), electrifying transportation, and increasing climate-smart agriculture. The Green Climate Fund and other international climate funds can pay for these changes. A green economy not only protects against shocks, but it also fits with the values of sustainability that are driving youth movements around the world, including Nepal's Gen Z.
International partnerships and strategic diplomacy
People around the world paid attention to the protests. To rebuild Nepal's reputation around the world, the government needs to be open, respect people's rights, and have a clear plan. India and China should work together in a balanced way, and the country should work with more multilateral organizations like the World Bank, ADB, and UN agencies. Rwanda's recovery after the war shows how international trust can speed up change when it is backed up by domestic credibility. Nepal needs to move from relying on foreign aid to developing partnerships that show strength instead of weakness.
Nepal's dependence on remittances and decades of corruption, unemployment, and political stagnation came to a head during the Gen Z protests, which cost the lives of 72 people. Their sacrifice must lead to a ten-pillar change that turns vandalism into rebuilding, corruption into trust, and protest into the start of Nepal's renewal.
(The author is a PhD Scholar at Manipal University, Jaipur. Views expressed are personal. He can be contacted at madhavdhakal55@gmail.com)
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