Banking Khabar / The Government of Nepal announced a comprehensive relief and austerity plan in response to the economic disruptions triggered by the recent Gen Z protests. The initiative seeks to provide immediate financial support to affected businesses while ensuring fiscal discipline through reduced government expenditure.
According to the plan, enterprises that incurred losses during the protests will be granted tax concessions, customs duty waivers, concessional loans, and payroll assistance. Loan repayment deadlines are also set to be extended in order to ease financial pressures on the private sector. Simultaneously, the government has suspended new small-scale projects under provincial and local administrations for the current fiscal year, redirecting resources towards essential development priorities. Economists have noted that this dual approach reflects the state’s effort to balance urgent economic recovery with long-term financial stability.
