Recent ‘Gen Z Movement’ Causes Billions in Damage, Government Announces Relief Package
Kathmandu, 22 Sep: The recent ‘Gen Z Movement’ in Nepal has resulted in an estimated initial loss of approximately NPR 80 billion for the private sector due to vandalism, arson, and looting. To boost the morale of the private sector following this destruction, the government has announced an immediate relief package. On Sunday, a delegation from the private sector, led by Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), met with Prime Minister Pushpa Kamal Dahal and informed him about the unimaginable damage caused by the movement. They demanded immediate relief from the government, security, and an end to impunity for the revival of the private sector, which is considered the backbone of the economy.
In response to the private sector’s demands, the government made a decision through the Council of Ministers on Sunday itself, announcing a preliminary financial relief package for the affected businesses. Finance Minister Rameshwar Khannal stated that this relief was announced based on the recommendation of a joint task force from the Ministry of Finance, the Nepal Rastra Bank, and the Insurance Authority.
Extent of Damage and Demands from Businesses
FNCCI President Chandra Prasad Dhakal stated that the federation is collecting damage reports from across the country and that preliminary estimates indicate losses of around NPR 80 billion. He mentioned that detailed reports from large industries and some businesses outside the capital are still pending. The Chaudhary Group (CG) alone has suffered an estimated preliminary loss of about NPR 5 billion. The group reported major damage to its electronics factory in Satungal, warehouses, CG Net’s servers and data center, motor showrooms, residences, and other commercial structures. Similarly, according to the Hotel Association Nepal (HAN), arson attacks on two dozen hotels across the country have caused damage worth approximately NPR 25 billion. The Hilton Hotel in Kathmandu alone is estimated to have suffered losses exceeding NPR 8 billion.
Calls for Economic Revival and Action Against Perpetrators
The private sector has urged the government to establish a continuous dialogue mechanism for economic restoration and good governance, ensure a conducive business environment, and take immediate action against those responsible for the destruction. They warn that a lack of action will increase impunity and further discourage investment.
Noting that Nepal is preparing to graduate from a Least Developed Country (LDC) in 2026, the private sector has suggested that the government request the United Nations to postpone the graduation decision, as such damage could create problems. They have also demanded a review of the budget to reallocate funds from unnecessary headings towards reconstruction and to provide various financial concessions.
