The government has estimated that Rs 36.30 billion will be required to rebuild and manage public assets damaged during the Gen Z protests held on September 8–9. A Cabinet meeting has approved a comprehensive action plan prepared by the National Planning Commission (NPC), which aims to complete the reconstruction of government structures within three years.
According to the NPC report, total losses from the protests reached Rs 84.45 billion. The public sector suffered damages worth Rs 44.93 billion, while the private sector incurred losses of Rs 33.54 billion. Community and other sectors accounted for an additional Rs 5.97 billion in damages.
Within the public sector, the federal government bore the largest share of losses at Rs 29.67 billion, followed by local governments at Rs 9.81 billion and provincial governments at Rs 4.49 billion. For reconstruction and asset management, the federal government is expected to require Rs 24.69 billion, provincial governments Rs 3.74 billion, and local levels Rs 7.83 billion.
Tanka Prasad Pandey, spokesperson for the Ministry of Finance, stated that the government plans to mobilize the necessary funds internally. He added that budget allocations for less feasible projects have already been reduced to prioritize reconstruction efforts.
The action plan also outlines relief measures for private sector entities affected by the unrest. These include tax rebates, faster insurance claim settlements, access to subsidized loans, and loan repayment rescheduling. Local governments will be encouraged to waive building permit fees for reconstruction, while eligible businesses may receive property tax exemptions for up to three years based on the extent of their losses.
To address insurance-related challenges, the government aims to ensure prompt payouts. In cases where insurance companies face liquidity constraints, provisions will allow them to access short-term concessional loans from institutions such as Nepal Rastra Bank, the Employees Provident Fund, and the Citizens Investment Trust.
Additionally, provincial governments are expected to waive taxes on the depreciation of private vehicles that were completely destroyed during the protests. Businesses that were forced to shut down will be allowed to convert lump-sum loan repayments into installment plans, and deadlines for loan restructuring and rescheduling will be extended until the end of the current fiscal year.
The plan also includes a grace period for businesses needing extra time to resume operations. Furthermore, those seeking reconstruction loans at fixed interest rates will be eligible for five-year financing with a minimal premium of 0.5 percent above the base rate.
