Nepal Faces $586 Million Economic Blow from ‘Gen-Z’ Protests

By: The Trek News Desk

Nepal’s economy has taken a major hit following the intense anti-corruption protests led by the country’s Gen-Z population in September. According to an official statement issued on Friday (December 12, 2025) by the office of interim Prime Minister Sushila Karki, the unrest caused economic losses exceeding $586 million. The demonstrations escalated so dramatically that Prime Minister K.P. Sharma Oli was compelled to resign.

Government data indicates that around 77 people lost their lives, while more than 2,000 were injured during the clashes three months ago. In addition to the human toll, widespread arson and vandalism caused extensive destruction of government and private property.

Key Government Structures Reduced to Ashes

Several of Nepal’s most significant administrative buildings were targeted during the violence. The massive Singha Durbar complex, the Prime Minister’s Office, the Supreme Court, the Parliament building, along with the private residences of political leaders and business properties linked to them, were set ablaze and heavily damaged.

A government-appointed assessment committee has estimated that reconstruction alone will require over $252 million, highlighting the scale of devastation inflicted during the protests.

Funding Gap Complicates Rebuilding Efforts

The interim government has launched a dedicated reconstruction fund to pool resources, but contributions from the public and various institutions have so far totalled less than $1 million. Authorities have not yet clarified how they plan to arrange the remaining funds required for rebuilding critical infrastructure.

Chakravarti Kantha, a senior engineer at the Ministry of Urban Development overseeing the restoration of major government buildings, confirmed that reconstruction work has already begun on the Singha Durbar, the President’s House, the Supreme Court, and several key ministries.

Repairs on partially damaged structures have been completed, and many of these buildings are already back in operation. Kantha added that work on destroyed buildings will commence once detailed assessments and architectural designs are ready, though he declined to provide timelines.

Political Landscape and the Road Ahead

The interim government has announced that new parliamentary elections will be held on March 5, 2026, raising hopes for a return to political stability after months of unrest.

However, Nepal’s economy, which was already struggling with multiple internal challenges, now faces an even tougher path to recovery. The large-scale destruction caused by the Gen-Z-driven protests has significantly intensified the pressure on the country’s reconstruction and economic stabilisation efforts.

Source: News Agencies