Kathmandu, Dec 13: Nepal’s economy suffered losses estimated at $586 million following deadly youth-led protests in September that toppled the government and triggered widespread destruction of public and private property, according to a government assessment released this week.
The protests, initially sparked by anger over a brief government ban on social media, escalated into nationwide unrest fuelled by long-standing frustration over corruption, unemployment and economic hardship. The demonstrations led to the resignation of then prime minister K.P. Sharma Oli after parliament and key state institutions were set ablaze.
An official committee formed by the interim government said more than 2,500 structures were torched, looted or damaged, including government offices, courts, lawmakers’ residences and major business complexes. The panel estimated total physical damage at 84.45 billion Nepali rupees, roughly equivalent to $586 million, representing nearly 1.4% of Nepal’s $42 billion economy.
At least 77 people were killed and over 2,000 injured during the unrest. The report said 20 people died on September 8, 37 the following day, and another 20 later, as police crackdowns intensified and riots spread across the country.
Following the collapse of the Oli government, former chief justice Sushila Karki was appointed interim prime minister to steer the Himalayan nation toward parliamentary elections scheduled for March 5, 2026.
The assessment found that government and public buildings accounted for nearly half of the total damage, with major sites such as Singha Durbar, Parliament House, the Supreme Court and the Prime Minister’s Office severely affected. Reconstruction costs are estimated at $252 million, but authorities said less than $1 million has been raised so far, with no clear plan announced to bridge the funding gap.
Senior urban development officials said repairs to some partially damaged buildings have been completed and key government offices have resumed operations, while reconstruction of fully destroyed structures will proceed once detailed designs and reports are finalised.
The unrest also dealt a major blow to the private sector and investor confidence. Some of Nepal’s largest companies, including Bhat-Bhateni supermarkets, the Chaudhary Group conglomerate and telecom provider Ncell, reported heavy losses. In the tourist hub of Pokhara, Hotel Sarowar was set on fire, affecting hundreds of livelihoods.
The World Bank has since revised Nepal’s economic outlook, cutting its 2025 growth forecast to 2.1% from 5.1%, citing heightened political and economic uncertainty. It also raised its poverty projection to 6.6% of the population, warning that recovery would remain fragile amid instability.
