Govt to support in loss not covered by insurance, market mechanism

Kathmandu, Oct. 25

Finance Minister Rameshore Khanal has said that the government will bear the losses incurred during the Gen Z protests if such damages are not covered by insurance or financial system.

"If the losses suffered by the private sector during the protests are not covered by any other mechanism, the government will step in to bear them," he said while accepting a report “Gen-Z Movement: Roadmap for the Economy after the Destruction” (Gen Z Aandolan: Dhwansa Pachhiko Arthatantrako Margachitra) prepared by Nepal Association of Financial Journalists (NAFIJ) at the Finance Ministry on Saturday.

FM Khanal maintained that while some markets manage themselves through natural processes, arrangements have been made for loan investments to support reconstruction. The government has extended the loan repayment periods for the businesses vandalised or set ablaze during the protests while some insurance claims will be covered by insurers.

However, for the types of losses that cannot be covered by insurance, banks and financial institutions, or market processes, the government will have to manage some form of compensation. Currently, the government is discussing the need and modality of such compensation, according to FM Khanal.

“The government is carefully assessing the damages. To help businesses restore their lost properties, the government will either provide grants or soft loans. The incumbent government will complete that work within its tenure," he said.

For this, the government is collecting official data on the damage. Once the details are available, necessary support will be provided to affected businesses.

Minister Khanal further said that while the official data has yet to be finalised, a task force is working to compile details of properties that have suffered loss and damage. Based on the forthcoming report, the government will assist businesses in restoring their lost assets.

FM Khanal reiterated that the current government aims to establish a path toward policy stability. However, he noted that it is not feasible to enact new laws and ensure their continuity at the moment, as the government’s main mandate is to conduct elections.

“Politically, it is not convenient for this government to issue ordinances for purposes other than elections,” Khanal said. “We will carry out tasks that can be implemented through cabinet decisions. We can also prepare the groundwork and drafts for necessary laws and hand them over to the next government.”

Speaking on the occasion, NAFIJ President Menuka Karki said that the report is prepared following a discussion on 'The way forward for economic recovery' participated by representatives from 15 businesses and industries, organised in the wake of the Gen Z movement, and focus group discussions conducted in Pokhara, Birgunj and Biratnagar.

She said that NAFIJ expects the report to be useful for the government in future policy formulation, as well as for researchers seeking to understand the economic impact of the Gen Z movement.

  Published in The Rising Nepal daily on 26 October 2025.