Government Prepares Business Recovery Package to Support Private Sector

The government has drafted a “Business Recovery Package” aimed at private enterprises affected by the recent Gen-Z movement and related disruptions. The package, prepared by the Ministry of Finance, will be presented at the next Cabinet meeting for approval.

According to sources at the ministry, the plan includes measures to ease bank loans, taxes, and insurance settlement. Banks will be instructed to provide new loans to affected businesses at the base rate without any premium, allowing entrepreneurs to access credit at lower costs.

The proposal also seeks to defer loan installments for three months. Borrowers could shift their payments due for mid-September to mid-October payment till mid-December to mid-January. The same facility would apply for the installment of mid-October to mid-November which can be paid within mid-January to mid-February. Likewise, the installment of mid-November to mid-December will be deferred till mid-February to mid- March. Nepal Rastra Bank would draft the necessary procedures for this deferral.

To help companies retain employees, the package offers interest subsidies on loans taken to pay salaries, ensuring that wages can be disbursed during the crisis and employee morale maintained.

Insurance payouts are another key feature. Businesses insured against damages from the unrest will be eligible to receive up to 50 percent of their claim amount within 15 days as an advance for immediate repairs and reconstruction. The remaining amount will be paid after a full assessment of losses.

Taxpayers unable to meet filing deadlines due to office closures during the protests will receive additional time, protecting them from fines, penalties, and late fees. The ministry had already extended last month’s tax filing deadline by one month.

The plan also calls for establishing a relief and reconstruction fund to support families of those who lost their lives, rebuild public infrastructure, and assist private enterprises with damaged facilities. Instead of direct cash grants to businesses, the government is considering customs exemptions on the import of reconstruction materials.

“Automobile and hotel sectors are among the hardest hit, and the package is designed with special focus on them,” a ministry source said.

Finance Minister Rameshore Khanal recently formed a task force after assuming office to prepare the package. The task force is led by Under secretary Suman Dahal and includes under secretaries Dhaniram Sharma and Uttarkumar Khatri, with representatives from Nepal Rastra Bank and the Nepal Insurance Authority. The plan will move to implementation once the Cabinet gives its approval.