KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s response to the Bhotekoshi floods has rapidly expanded from emergency rescue to a broader recovery and reconstruction effort, revealing both the scale of the disaster and the country’s institutional capacity under pressure. The government has mobilized financial resources at multiple levels, with Rs 67.5 million allocated to 15 affected local governments and the Bagmati Province government committing another Rs 30 million for rescue, relief, transportation and funeral support. Meanwhile, the Prime Minister Disaster Relief Fund has crossed Rs 6.5 billion, supplemented by major private-sector contributions, indicating strong public and corporate support.
Restoring essential services has emerged as a parallel priority. Nepal Rastra Bank has directed financial institutions to resume banking through alternative channels, while electricity networks, roads and fuel supplies are being restored. NOC’s fuel deliveries and the reopening of an alternative road to Dhadingbesi demonstrate efforts to maintain logistical access.
However, the continuing rescue challenges underscore the disaster’s severity. More than 2,000 people remain unaccounted for, including workers trapped in hydropower tunnels, while hundreds of foreign tourists required rescue. The projected reconstruction cost of USD 4–5 billion suggests prolonged economic consequences, particularly for infrastructure and hydropower. International assistance from the EU and specialized support from foreign partners will therefore be important. Overall, Nepal’s response is transitioning from immediate humanitarian relief toward a complex, resource-intensive recovery phase requiring sustained coordination, financing and infrastructure rebuilding.
Government releases Rs 67.5 million to flood-hit local governments
The government has released Rs 67.5 million in grants to local governments affected by the flash floods in the Bhotekoshi River in Rasuwa, according to the National Disaster Risk Reduction and Management Authority. The authority’s Executive Committee approved the release at its 35th meeting. The funds will be distributed among 15 affected local governments in Rasuwa, Nuwakot, Dhading, Gorkha and Tanahun based on the extent of damage. Immediate relief will be provided through the respective District Disaster Management Committees in accordance with established procedures. The financial assistance is intended to support local-level rescue and relief coordination and provide assistance to families affected by the disaster.
NRB directs immediate restoration of banking services
Nepal Rastra Bank (NRB) has directed banks and financial institutions to promptly resume banking and payment services in Rasuwa and other areas affected by the recent natural disasters. In a statement, NRB urged banks and financial institutions to use alternative digital platforms and service points to maintain access for customers where regular operations have been disrupted. It also called on financial institutions to mobilize the resources required for rescue, relief and rehabilitation efforts. The central bank further instructed institutions to give priority to the safety and security of customers, employees and communities affected by the disaster.
Prime Minister Disaster Relief Fund crosses Rs 6.5 billion
The total amount collected in the Prime Minister Disaster Relief Fund exceeded Rs 6.553 billion as of August 28, following a sharp increase in contributions for victims of the Rasuwa floods. The fund had an existing balance of Rs 2.172 billion, while an additional Rs 4.38 billion was collected following the disaster. Of the new contributions, Rs 2.46 billion was deposited on Friday alone. Among the nine designated bank accounts, Rastriya Banijya Bank holds the largest amount, with deposits of Rs 3.279 billion. The fund also holds foreign currency deposits equivalent to USD 680,618 in various partner banks. The funds will be used to support temporary shelter, food, medicines and reconstruction of damaged infrastructure.
Bagmati government allocates Rs 30 million for flood relief and transportation
The Bagmati Province government will cover the cost of transporting rescued people and identified bodies from Rasuwa to their respective homes, using funds transferred from the Provincial Disaster Management Fund to local governments. Minister for Economic Affairs and Planning Saral Sahayatri Paudel said the necessary financial arrangements have been made to support transportation, logistics and relief operations. The provincial government has also allocated Rs 30 million for immediate rescue and relief operations in four affected districts. Of the amount, Rs 20 million has been allocated to Rasuwa and Nuwakot, while Dhading and Chitwan will each receive Rs 5 million. The government will provide Rs 25,000 to the family of each deceased person to cover funeral expenses. It has also made arrangements for free bus services, temporary accommodation and reconstruction of damaged infrastructure.
Post-flood reconstruction to cost Nepal $4 billion–$5 billion: Finance Minister
Nepal could require between USD 4 billion and USD 5 billion for reconstruction following the devastating glacial flood that struck the country’s northern region bordering China, Finance Minister Swarnim Wagle told Reuters. The preliminary estimate comes as the death toll from Wednesday’s disaster has exceeded 600, while more than 2,000 people remain unaccounted for. The powerful torrent of rock, mud and ice destroyed settlements and caused extensive damage to critical infrastructure, including schools, hospitals, hydropower plants and nearly two dozen bridges. While Nepali security agencies are continuing conventional search and rescue operations, Foreign Minister Shisir Khanal said the government is seeking specialized technical support from international partners for specific aspects of the response.
Nepal Oil Corporation supplies aviation fuel and petroleum products
Nepal Oil Corporation (NOC) has supplied 40,840 litres of aviation turbine fuel to an Army barracks in Nuwakot to support helicopters involved in search and rescue operations following the Bhotekoshi River floods. The fuel deliveries included 12,000 litres on August 26, 10,840 litres on August 27, and 9,000 litres each on August 28 and August 29. Through its Bagmati Provincial Office in Thankot, NOC has also supplied 72,000 litres of petrol and 62,000 litres of diesel to fuel stations in disaster-affected areas. In addition, 382 cooking gas cylinders have been supplied to relief camps through industry associations.
Alternative road to Dhadingbesi comes into operation
An alternative road to Dhadingbesi, the district headquarters of Dhading, has been opened, restoring road connectivity with the headquarters. The alternative route runs through Parewatar, Nepaltar, Gajuritar, Piplatar, Adamtar, Belinitar and KeurinItar before connecting to Mastar. Road access to Dhadingbesi had been disrupted after a flood in the Bhotekoshi River in Rasuwa.
Electricity restoration efforts intensified in flood-hit areas
Electricity supply has been restored in Kharanitar, Samundratar, Chaugada, Likhu and Panchkanya of Nuwakot by connecting the areas to lines from Sindhupalchok, according to the Ministry of Energy, Water Resources and Irrigation. Power has also been restored in Gajuri, Malekhu and Muglin, while efforts are continuing to reconnect all affected areas of Nuwakot. Authorities are working to restore electricity by drawing 11 kV lines from points reached by the 66 kV Balaju and Trishuli transmission lines. The 33 kV line from Dhadingbesi to Ratomate has also been energized, with electricity supply now operational. Damage assessment in Rasuwa is continuing in coordination with the Office of the Prime Minister and Council of Ministers and the National Disaster Risk Reduction and Management Authority. Authorities have set a target of restoring electricity services in Rasuwa within a week, while rescue operations remain a priority.
CNI contributes Rs 52.9 million to Prime Minister Disaster Relief Fund
Industrial enterprises and member organizations coordinated by the Confederation of Nepalese Industries (CNI) have contributed Rs 52.9 million to the Prime Minister Disaster Relief Fund for rescue, relief and rehabilitation efforts in flood-affected areas. A CNI delegation led by President Birendra Raj Pandey handed over the contribution cheques to Finance Minister Swarnim Wagle on Friday. Major contributions included Rs 11.1 million from MMW Group, Rs 10 million from Bijay Kumar Shah, Rs 10 million each from Jawalakhel Distillery and Himalaya Distillery, and Rs 10.1 million from Himalaya Building Company. The Chaudhary Group and Nabil Bank have also provided substantial support separately, with their combined contributions exceeding Rs 150 million.
184 foreign tourists rescued following Bhote Koshi and Trishuli floods
Search and rescue operations are continuing in Nepal following flash floods along the Bhote Koshi and Trishuli rivers that affected Rasuwa, Nuwakot, Dhading and Gorkha districts on August 26. According to Situation Update–8 issued by the Nepal Tourism Board at 1:30 pm on August 29, authorities have rescued 184 foreign tourists so far. Three others remain in direct communication with authorities, while 420 people are still unreachable due to disrupted communication networks. The rescue effort is being coordinated by the Ministry of Culture, Tourism and Civil Aviation, Nepal Tourism Board and Tourist Police. The rescued tourists are from 15 countries, including 114 Indian nationals, 27 Chinese nationals and 20 South Korean nationals. Meanwhile, the Kathmandu–Mugling road section has been fully cleared, restoring normal traffic along the vital route.
Rescue teams aim to reach Rasuwa hydropower tunnels tonight
Rescue teams are working around the clock to reach tunnels at damaged hydropower projects in Rasuwa and rescue workers and other people believed to be trapped inside, according to Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha. Speaking to families of those still trapped, Minister Shrestha said specialized helicopters and technical personnel from the Nepal Electricity Authority have been operating continuously from Nuwakot since Friday to coordinate the rescue effort. He said saving lives remains the government’s foremost priority and that authorities are exploring ways to pump oxygen into the tunnels before rescue teams enter. The disaster has affected 12 hydropower projects in the region, with more than 500 workers and staff reported unaccounted for inside various project tunnels.
Ncell extends free telecommunications services for flood victims
Ncell has extended its free voice, data and SMS services for another seven days from Saturday to support communication, search and rescue operations and relief efforts in flood-affected areas. The telecommunications company had initially announced free services for three days following the Bhote Koshi River flash floods in Rasuwa on Wednesday. The extension is intended to help displaced residents stay in contact with their families and enable emergency response teams to coordinate rescue and relief operations. Ncell Chief Consumer Business Officer Upang Datta said the company remains committed to supporting affected communities and facilitating coordination among teams involved in the ongoing response.
European Union announces EUR 2 million in humanitarian aid for flood victims
The European Union (EU) has announced EUR 2 million in humanitarian assistance for communities affected by the devastating floods in Rasuwa. The emergency funding will support immediate needs, including food, healthcare, safe drinking water and sanitation services, through partner organizations already working in the affected areas. The assistance comes in addition to nearly EUR 3 million allocated earlier this year for disaster preparedness in Nepal. The earlier funding has enabled the rapid deployment of pre-positioned emergency shelter and relief supplies. The EU has also activated its Copernicus satellite mapping service to support emergency response and coordination efforts.
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