GenZ movement causes Rs 280 billion damage to public and private sectors across Nepal

KATHMANDU: The GenZ Movement protests that swept across Nepal on September 8 and 9 (Bhadra 23 and 24) have caused an estimated Rs 280 billion worth of damage to public and private infrastructures, according to a preliminary assessment by the Ministry of Urban Development.

The ministry reported that 440 government buildings and structures across the country were affected during the violent demonstrations. However, officials said the actual figure could rise as detailed data from several key government complexes — including ministries within Singha Durbar, the Office of the Prime Minister and Council of Ministers, and ministerial residences — are still being compiled.

Preliminary estimates show that Rs 150 billion worth of losses occurred in government properties alone, while the private sector faced damages amounting to Rs 80 billion. The government said that unless reconstruction and rehabilitation programs are launched immediately, the destruction could have long-term negative effects on Nepal’s fragile economy.

According to the Ministry’s breakdown, 134 government buildings were completely destroyed, 176 suffered partial damage, and 130 sustained minor damages. The affected structures include federal, provincial, and local government offices, courts, revenue and tax offices, land revenue departments, prisons, and road division offices, many of which were vandalized or set on fire.

The ministry has already begun formulating a reconstruction and rehabilitation plan. In the first phase, buildings that can be repaired will undergo design and cost assessment, while international technical experts will be brought in to evaluate the structural stability of completely burnt or collapsed buildings.

Meanwhile, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has reported that the private sector suffered losses worth approximately Rs 80 billion, with the tourism industry alone incurring Rs 25 billion in damages. FNCCI President Chandra Prasad Dhakal stated that the organization is still collecting detailed reports from affected industries and businesses, particularly those outside the Kathmandu Valley.

“The private sector contributes 81 percent to Nepal’s economy and generates 86 percent of total employment. Such massive destruction has shaken business confidence and could slow down overall economic recovery,” Dhakal said.

FNCCI has urged the government to introduce immediate economic relief measures, including loan restructuring and rescheduling, income tax waivers, customs and duty exemptions, interest subsidies, and adjustments in VAT rates. The umbrella body also suggested that funds allocated under Corporate Social Responsibility (CSR) should be allowed to be used for reconstruction purposes.

Additionally, FNCCI recommended that the government make the business registration and cancellation process more efficient through the Nagarik App and remove the renewal obligation for companies that have already cleared their tax dues.

Officials from both public and private sectors warned that without swift government intervention, the economic shock caused by the GenZ Movement could derail fiscal stability, reduce investor confidence, and delay Nepal’s post-crisis economic recovery.

The government is expected to release a detailed reconstruction plan within the coming weeks once final damage verification is completed.