Private sector faces over NRs 27 billion in losses during Gen-Z protests

Private businesses in Nepal suffered staggering losses exceeding NRs 27 billion during the violent unrest sparked by the “Gen-Z” protest on September 8 and 9, according to a recent government assessment.

The assessment titled “Government Assessment Report on Damage to Public Property, Physical Structures and Private Establishments”, which also outlines a reconstruction plan for public infrastructure, details widespread destruction to industrial, commercial, and household properties. Private sector establishments alone absorbed losses of NRs 27.49 billion.

The report records 77 deaths. Twenty people died on September 8, the first day of the protest. Another 37 died on September 9, and 20 more in the days that followed.

Buildings hit hardest

The report reveals that the largest share of losses, 45.2%, was due to arson and vandalism of buildings. Damage to other physical assets accounted for 27.4%, while temporary and movable property losses made up 21.7%, and vehicle damage represented 3.4%. Because much of the destruction targeted permanent structures and critical infrastructure, the report notes that production, services, and employment were directly disrupted.

The violence disrupted production of goods and services, with losses incurred at NRs 13.87 billion. On the employment front, 2,999 individuals were directly affected, with 2,353 losing their jobs entirely.

Industrial and commercial buildings, along with other privately owned structures, sustained NRs 12.43 billion in damage, representing 57.8% of all private-sector losses and 14.7% of overall damages. 

In total, 133 private-sector buildings were affected, with Bagmati Province bearing the brunt: 96 buildings were damaged there, resulting in losses of NRs 10.68 billion.

Vehicles and assets also destroyed

The report also highlights significant losses to vehicles owned by industrial and commercial firms, estimating the damage at Rs 1.30 billion, about 6.5% of total private-sector losses. Of the 272 vehicles affected, the vast majority (264) were in active use at the time, with only eight out of service. Nearly three-quarters were completely destroyed, while the rest sustained partial or minor damage. Insurance coverage was uneven: just 228 vehicles were insured, together accounting for an insured value of Rs 1.30 billion.

Losses to other physical assets, including furniture, electronic equipment, laboratory tools, and communication systems amounted to NRs 7.55 billion. The report emphasises that most of these items were in active use and were completely destroyed through arson, theft, and vandalism.

Cash and valuables also targeted

The assessment estimates that cash and valuables losses totaled NRs 2.81 billion, with private establishments losing NRs 561.8 million. Theft 
(57.5%), arson (30.9%) and vandalism (11.6%) were the main culprits, where high-value items made up over 88% of the losses.

Households suffered significant losses too

The unrest also severely affected households. Residential buildings, vehicles, and movable property were damaged, disrupting daily life and income-generating activities. 

Total household losses exceeded NRs 6.05 billion, with the bulk from building damage (NRs 2.85 billion), followed by vehicles (NRs 905 million) and other physical assets (NRs 1.10 billion).

Public sector bears 44.9 billion rupees in losses

Losses were unevenly distributed across the public sector, with the Nepal government absorbing 66% of the total impact, followed by local governments at 21.8%, provincial governments at 10%, and public enterprises at 2.2%. In terms of damage type, nearly half of the losses, 44.7% stemmed from arson and vandalism targeting buildings. Damage to other physical infrastructure accounted for 23.2%, losses to temporary and movable assets comprised 29.4%, and vehicle-related damage made up the remaining 2.6%.

Insurance coverage remains shockingly low

The report highlights Nepal’s low insurance penetration. Of 2,671 buildings damaged during the unrest, only 130 (4.9%) were insured, 19 government-owned and 111 privately owned. Overall, 2,234 government and community buildings and 437 private buildings were damaged, underscoring the vulnerability of both public and private assets.

The government’s assessment paints a stark picture of the economic fallout from the Gen-Z protests, with private businesses and households left to bear the brunt of widespread destruction.

The report states that the overall losses amounting to NRs 84.45 billion correspond to 1.4% of Nepal’s GDP and 4.3% of the national budget for the current fiscal year. 

Among the total damage, the public sector bore the largest share at 53%, followed by the private sector with 40%, while community and other sectors accounted for the remaining 7%. 

The committee has outlined a reconstruction plan, projecting that rebuilding the damaged infrastructure, including vehicles will require NRs 36.30 billion.