Government Unveils Special Relief and Reconstruction Plan Following 'Gen-Z' Protests

Kathmandu. The government has unveiled a special relief and reconstruction work plan, concluding that the country's private sector has fallen into further crisis due to the 'Gen-Z' protests that occurred last Bhadra. The detailed report on reconstruction and reorganization, prepared by the government, reached this conclusion following extensive physical damage during the protests on Bhadra 23 and 24, 2082 BS.

Stating that this movement has further devastated the private sector, which was already grappling with a weak post-COVID-19 economy and external financial pressures, the government has prioritized the security of private property and businesses. According to the work plan, local levels will provide exemptions on map approval fees for structures damaged by the protests.

Similarly, the government has adopted a policy of requesting local governments to grant property tax exemptions for three years to private businesses, depending on the nature of the damage. Provincial governments will be urged to waive taxes levied on the deregistration of private vehicles completely destroyed during the protests.

In terms of financial relief, the government has extended the period for loan rescheduling and restructuring for businesses affected by the protests until the end of Ashar, 2083 BS. Arrangements will be made for the immediate disbursement of insurance claims for insured structures. If insurance companies face liquidity shortages, the plan includes provisions for providing short-term loans at concessional interest rates through the Nepal Rastra Bank, Employees Provident Fund, and Citizen Investment Trust. For those wishing to take reconstruction loans at a fixed interest rate, loans will be provided for up to five years with a premium of only 0.5 percent added to the base rate.

The government has also arranged relief for personal items such as mobile phones, laptops, clothing, and vehicles belonging to the general public damaged inside government office premises. Relief amounts of up to 25 percent of the total cost will be provided through the respective District Administration Offices based on the police inventory report. Business owners who took working capital loans but whose assets were completely destroyed will also be given the facility to convert that loan into installments.

The government has formulated short-term and long-term strategies for reconstruction. Funds will be managed by reallocating the current fiscal year's budget for the repair of minorly damaged government buildings, while the goal is to reconstruct fully damaged structures within two years. To achieve this, the government has adopted a policy of budget management through the National Project Bank and the Medium-Term Expenditure Framework, involving cost-sharing and coordination among all three tiers of government.