Government announces initial relief package for businesses hit by Gen-Z protests

Kathmandu: The government has announced a preliminary financial package to help revive businesses damaged during the Gen-Z protests.

The decision was made at Sunday’s Cabinet meeting, based on the recommendations of a joint task force formed by the Ministry of Finance, Nepal Rastra Bank, and the Insurance Authority.

Finance Minister Rameshore Khanal, upon assuming office, had formed the task force under the leadership of Finance Ministry Joint Secretary Suman Dahal, with Joint Secretaries Dhaniram Sharma and Uttar Kumar Khatri as members. Representatives from the central bank and the Insurance Authority were also included.

Coordinated by Finance Minister Khanal and Nepal Rastra Bank Governor Dr Bishwanath Paudel, the task force was set up to immediately announce a relief package for businesses suffering heavy losses from the Gen-Z protests, and to restore confidence in the business sector.

The task force comprised three joint secretaries from the Finance Ministry, three executive directors from the central bank, and one executive director from the Insurance Authority. Based on its recommendations, the Cabinet approved the relief measures at Sunday’s meeting, following the Finance Minister’s proposal.

Minister Khanal said the government, along with Nepal Rastra Bank and the Insurance Authority, would begin relief programmes to help industries and commercial enterprises resume operations in the extraordinary circumstances created by the Gen-Z movement.

As part of the relief package, the government will provide a 50 percent customs duty waiver on imported goods used to rebuild damaged structures, he announced. Similarly, the Insurance Authority will arrange advance claim payments against insurance claims. Nepal Rastra Bank will extend loan repayment deadlines for affected businesses.

In addition, to ensure job security for employees of affected industries, the government will introduce a “Payroll Protection Plan.” Businesses able to pay wages through loans will be provided concessional credit facilities, while those unable to do so will receive wage support from a national-level Reconstruction Fund to be established.