Kathmandu, Aug. 4: Nepal’s private sector has criticised the police raid on the residence of industrialist Benigopal Mundada in Biratnagar, saying heavy-handed investigations without evidence are damaging investor confidence and accelerating capital flight. The criticism comes even as Prime Minister Balendra Shah and Finance Minister Dr. Swarnim Wagle continue separate consultations with business leaders to encourage private investment. “When the prime minister invites investment while law enforcement treats entrepreneurs like criminals, it sends the wrong message,” he said, adding that searches without concrete evidence damage reputations and create fear among investors. Economist Chiranjibi Nepal said the treatment of the private sector, which contributes about 80 per cent of the country’s economy, risks pushing investors to move their capital abroad. Business groups say many companies have postponed expansion plans, warning that the government’s seven per cent economic growth target will be difficult to achieve without stronger private sector investment.