Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: A government task force has estimated that it will cost Rs. 36.30 billion to repair and rebuild the physical infrastructure damaged during the “Gen Z” protests that took place on September 8 and 9 (Bhadra 23 and 24).
The assessment was carried out by a five-member committee led by the Secretary of the National Planning Commission. The team was formed by the Cabinet shortly after the protests to evaluate the destruction and create a roadmap for recovery.
Breaking down of costsAccording to the committee’s report, the total economic impact of the protests is staggering. While the reconstruction cost is set at over Rs. 36 billion, the total physical damage is valued at Rs. 84.45 billion. This loss represents about 1.38% of Nepal’s total GDP and more than 4% of this year’s national budget.
The government plans to spend the funds in three main areas:
Buildings: Rs. 19.98 billion for repairing and rebuilding damaged structures.
Vehicles: Rs. 6.16 billion to replace or fix burnt and broken vehicles.
Other Assets: Rs. 10.14 billion for various physical goods and equipment.
Impact on Provinces, PeopleThe destruction was not equal across the country. Bagmati Province saw the most significant damage, accounting for a massive 66.5% of the total loss (Rs. 56.23 billion). Koshi Province followed with over Rs. 10 billion in damages, while Karnali saw the least at Rs. 62 crore.
The human cost of the unrest was also highlighted in the report:
Loss of Life: 77 people died during the protests, 39 of whom were young people aged between 13 and 28.
Job Losses: Nearly 3,000 people saw their livelihoods affected, with 2,353 individuals losing their jobs entirely.
Buildings: A total of 2,671 buildings were damaged, nearly 80% of which were public or government offices.
Setback for economyBeyond broken buildings, the protests caused a loss of Rs. 13.87 billion in the production of goods and services. The committee noted that the public and government sectors bore the brunt of the damage (53%), while the private sector suffered 40% of the total financial hit.
The government is now faced with the massive task of finding the funds to restore these essential services and help those who lost their jobs during the two days of intense unrest.
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