Nepal’s government has introduced the first phase of a relief package to help businesses recover from the catastrophic August 26 floods in the Bhote Koshi river basin, which destroyed roads, bridges, hydropower infrastructure, and commercial property. Affected businesses can deregister commercial vehicles swept away by the floods and import replacements without paying customs duties. Importers whose goods cleared the Rasuwa customs point but were destroyed before reaching their destination can adjust previously paid duties against similar goods imported within six months.
Banks and financial institutions must offer loan restructuring or rescheduling, as well as payment extensions on principal and interest, based on the scale of damage and insurance payouts. The government set the interest rate for affected borrowers at a modest premium above the base lending rate for one year. Additionally, the tax return and payment deadline was extended from mid-October to November 11, and businesses can claim destroyed asset values as a one-time tax deduction.
The Nepal Insurance Authority has pledged to speed up damage evaluations and the settlement of flood-related claims. Officials noted this is the initial phase of a broader recovery effort, with more measures anticipated as the full economic damage is determined. Meanwhile, rescue operations continue, with workers still being pulled alive from a hydropower tunnel over a week after the disaster.