Nepal Unveils Major Relief Plan Following ‘Gen Z’ Protests

Nepal Unveils Major Relief Plan Following ‘Gen Z’ Protests
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Nepal’s interim government has unveiled a comprehensive relief and austerity package to address the massive economic destruction caused by youth-led “Gen Z” protests earlier this month, according to Anadolu Agency. The violent demonstrations resulted in over 70 deaths and caused billions of dollars in damage, with estimated losses approaching half of the country’s GDP.

The package, approved by the Cabinet, aims to stabilize fragile sectors and facilitate recovery following the turmoil that led to the ouster of the previous government. An initial private sector assessment indicated businesses alone lost around 80 billion Nepalese rupees ($563 million), affecting nearly 15,000 jobs.

Key relief measures include a 50% exemption on customs and excise duties for importing essential replacement equipment, reconstruction loans, and an extension on loan repayment deadlines. Furthermore, the government introduced a Payroll Protection Scheme to prevent mass layoffs and ensure affected employees continue receiving wages while businesses rebuild.

Simultaneously, the government initiated a stringent austerity drive, which involves scrapping all small-scale provincial and local projects and halting funding for new projects launched this fiscal year.