Outbursts of demonstrations in different parts of the country to oppose the government’s move to amend the constitution have once again raised the level of nervousness among the business community, as many have started seeing these  protests as a prelude to political explosion that could lead to bandas.

Thousands of people took to the streets in western Nepali town of Butwal on Friday after the government tabled a constitution amendment bill in Parliament, which, among others, has proposed to split proposed Province 5.

Similar protests were seen in the Kathmandu Valley, and Banke, Bardiya and Kaski districts, while four opposition parties have been obstructing Parliamentary proceedings since Thursday.

Protests are a part of a democratic culture and they should be seen as elements to strengthen the budding democracy and make the government accountable. But the problem in Nepal is that deepening dispute between political parties ends up in series of bandas, halting movement of people and vehicles, and shutting down factories, creating uncertainty for a prolonged period of time, Pashupati Murarka, president of the Federation of Nepalese Chambers of Commerce and Industry, told the Post. “I appeal to political parties to act responsibly and continue with peaceful protests so that the private sector is not hit,” the head of the largest private sector umbrella body said.

Nepal’s private sector—which has dealt with frequent government changes since the restoration of democracy in 1991, decade-long Maoist insurgency from 1996 to 2006, and an Indian blockade which limited economic growth to 0.8 percent in the last fiscal year—has long been hoping for the end of political paralysis. But problems keep on cropping up. This has limited the country’s average economic growth to around 4 percent in the last one decade, whereas neighbouring China and India are growing at around double this pace.

Despite being in doldrums for years, the feel-good factor had lately started trickling in, as the government started showing urgency to introduce reforms to create business-friendly environment.

In the last several months, the government has introduced new Special Economic Zone Act and Industrial Enterprises Act. It is also in the process of introducing an investor-friendly Labour Act, Foreign Investment and Technology Transfer Act, and Bank and Financial Institution Act.

Business sentiment, of late, has also started going up, as industries hit by over four-and-a-half-month Indian trade embargo are now operating at far higher capacity, foreign visitors are gradually returning to the country, and demand for almost every consumer good is rising.

Lately, even the government has started taking measures to stimulate capital spending-money spent on construction of physical infrastructure, like hydroelectric projects, transmission lines, irrigation projects, airports and roads-which has always remained very low.

One such measure is the warning issued by the Ministry of Finance to retract budget allocated for different capital projects if they fail to start works within March 13.

The government has shown commitment to accelerate capital spending because it has understood that public spending on development of critical physical infrastructure allows the private sector to expand their industries and businesses.

Hike in both public and private investment ultimately helps create hundreds of thousands of jobs, raise income and reduce poverty, which are much needed for Nepal to spur more inclusive and sustained economic growth. But the spectre of protest programmes such as bandas is likely to put a shackle on country’s development endeavours.

Also, protests of these forms generally exert inflationary pressure, prompting prices of goods and services to skyrocket. This only erodes value of money, making lives of Nepalis more difficult.

“Political parties have never hesitated to sell dreams of economic prosperity to the people, but whenever they get an opportunity they do not hesitate to call Nepal banda, crippling daily lives of people. Parties should resort to other forms of peaceful protests if they are committed to developing the country,” Hari Bhakta Sharma, president of the Confederation of Nepalese Industries, said.