Kathmandu, Nov. 4 -- Citing political instability following the violent Gen Z protests in early September, international clothing brands operating in India, including Indian labels exporting to the US, have paused their plans to invest in Nepal as well.

"Potential investors are demotivated and in a dilemma after the Gen Z protest," said Pashupati Dev Pandey, president of the Garment Association of Nepal, the umbrella organisation of readymade garment makers and exporters.

Protesters had set fire to several luxury hotels in Kathmandu, including the Hilton Kathmandu, Hyatt Regency, and Hotel Varnavas, raising concerns about the security of investment in the country.

Pandey said a US trade delegation is currently in India for tariff negot...