The private sector has long served as the primary engine of the Nepali economy, generating approximately 86 percent of jobs and contributing roughly 81.55 percent to the national output. Yet, for decades, commercial enterprises have borne the brunt of broader political instability and social grievances, routinely finding themselves the first targets of arson, extortion and looting. Against this backdrop, the Government of Nepal’s recent decision to revive the Industrial Security Force (ISF) under the newly launched Private Investment Protection and Promotion Strategy is a welcome move.

Albeit late, the strategy represents the Balen Shah administration’s pragmatic shift towards acknowledging that capital accumulation cannot flourish if the physical security of enterprises is compromised. After recurring instances of civil unrest—most notably the Gen Z movement of September, which inflicted losses exceeding Rs84 billion to private businesses across the country, and the more recent arson of enterprises in Golbazar, Siraha, towards the end of July—the government seems to be attempting to rebuild the shattered confidence of the business community. This is also in line with PM Shah’s meeting with leaders of the business community on July 8.

The historical precedent of the ISF is deeply discouraging. The Armed Police Force personnel initially deployed under the ISF concept in 2012 were permanently redeployed to border regions during the Covid-19 pandemic and never returned to their industrial posts. This security vacuum, even after the pandemic ended, left major industrial corridors completely vulnerable, inducing a climate of persistent risk that stagnated private investment growth at a dismal 0.2 percent in the last fiscal year.

While declaring industrial zones as ‘peace zones’ and establishing rapid-response teams are commendable policy steps, such strategic formulation alone will not assuage the deep-seated investor scepticism. Timely amendments to laws such as the Industrial Enterprises Act, the Foreign Investment and Technology Transfer Act, and the Special Economic Zone Act also help the cause by demonstrating commendable legislative intent. However, the introduction of security strategies remains mere symbolism until the government demonstrates a resolute zero-tolerance stance against offenders through actual prosecution and punishment. The Shah administration’s ambitious economic targets—expanding the national economy to nearly $100 billion, raising per capita income to $3,000, and maintaining an average annual growth rate of 7 percent—will remain entirely unachievable if the state fails to guarantee basic property rights and physical safety.

To convert the strategic initiative of ISF into a tangible economic catalyst, the Shah government must focus on decisive, multi-layered execution. First, the deployment of the revived security force must be institutionalised through dedicated, permanent units, ensuring that personnel are never again diverted to auxiliary state duties during crises. Second, the state must establish a clear legal precedent of accountability. Legal proceedings against individuals involved in commercial vandalism must be swift, resolute and transparent, ending the decades-long culture of impunity that has surrounded targeted attacks on private enterprises.

Furthermore, the government should swiftly operationalise the proposed joint coordination and facilitation committee comprising state officials and private-sector representatives. It is incumbent that this framework empowers business leaders to directly highlight emerging security vulnerabilities before localised protests escalate into destructive violence. Combining these security measures with proactive administrative relief—such as streamlining relocation permits through Initial Environmental Examinations for damaged businesses and granting targeted tax, fee, or penalty waivers for struggling firms—will provide immediate support to the commercial landscape. Ultimately, policy declarations must translate into tangible protection on the ground. Only by guaranteeing a safe, predictable and resilient operational environment can Nepal inspire domestic enterprise, attract foreign direct investment, and place its national economy on a sustainable trajectory toward long-term prosperity.