Nepal says economy suffered 6 million hit from ‘Gen Z’ protests
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File picture of protesters celebrating at Nepalโ€™s Parliament building after it was set on fire during a protest against social media ban and corruption in Kathmandu

File picture of protesters celebrating at Nepalโ€™s Parliament building after it was set on fire during a protest against social media ban and corruption in Kathmandu
| Photo Credit: AP

The anti-graft protests in September that forced Prime Minister K.P. Sharma Oli to resign caused more than $586 million in losses to Nepalโ€™s $42 billion economy, a government statement said on Friday (December 12, 2025). The youth-led protests and the unrest that followed killed 77 people and injured more than 2,000 others three months ago.

Public and private infrastructure โ€” including the sprawling Singha Durbar Office complex, the Prime Ministerโ€™s Office, the Supreme Court, Parliament House, the private residences of politicians, and business complexes owned by individuals close to some politicians โ€” was set ablaze and destroyed.

A statement from the office of interim Prime Minister Sushila Karki, a former Chief Justice, who succeeded Mr. Oli, said an official committee set up to assess the losses estimated that the cost of rebuilding would top $252 million.ย 

The interim government has set up an official fund to mobilise resources for the reconstruction and has so far collected less than $1 million from the public and different institutions, authorities said. The government has not said how it plans to bridge the resource gap for the reconstruction.

Chakrabarti Kantha, a Senior Engineer at the Ministry of Urban Development in charge of rebuilding public infrastructure, said the reconstruction of the Singha Durbar, the Presidentโ€™s House, the Supreme Court and key Ministries had already started.

Repairs of some partially damaged buildings have already been completed and they are now back in use.

โ€œThe work for other buildings that were completely destroyed would begin once the required detailed reports and designs are ready,โ€ Mr. Kantha told Reuters, without specifying timelines. The interim government has scheduled new Parliamentary elections for March 5, 2026.

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