An indefinite general strike in Nepal’s Terai region has cost the economy more than $1bn, according to the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). The strike, now in its second month, has brought daily life to a standstill, with schools and factories shut, transport disrupted, and prices of basic goods soaring.
Pashupati Murarka, president of the FNCCI, described the crisis as the country’s worst economic disaster, saying the impact was worse than the earthquakes that struck earlier this year. “The economy has been almost completely stalled for the past two months,” he said. He accused the government of failing to address the crisis and criticised the protesting parties for halting business.
The strike was called by political parties and organisations representing the Madhesi and Tharu ethnic groups, who oppose the new constitution. They are demanding greater representation in parliament and a redrawing of provincial boundaries. Laxman Lal Karna, co-chairman of the Sadbhavana party, said the government had turned a deaf ear to their demands, adding that protests would be withdrawn once demands were addressed.
At least 40 people have died in violent demonstrations since August. Protesters have blocked border crossings with India, cutting off supplies of petrol and cooking gas. The government has banned private vehicles from refuelling and rationed fuel for public transport. International flights have been told to refuel elsewhere. Streets in Kathmandu are unusually quiet as residents resort to cycling or car-pooling.
The crisis has hit the tourism industry hard, coinciding with Nepal’s peak season. DB Limbu, president of the Nepal Association of Tour and Travel Agents, said cancellations had surged after hopes of a post-earthquake revival. “This year maybe we have lost half the number of tourists who came last year,” he said, expressing hope that a resolution would bring improvement.
Minister of Information Minendra Rijal said the government was engaging in diplomatic dialogue with India and had promised to address the Madhesi demands. “We believe the situation will improve with permanent peace and a firm government,” he added.
