Kathmandu. The vandalism and arson during the Genji movement against corruption and irregularities have had a profound impact on Nepal’s economy. It has caused huge damage to business, lost jobs and frustration in the private sector.
Major economic losses and estimated costs
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Property worth billions of rupees of government and private sectors has been destroyed in the agitation. Although there is no official figure yet, it is estimated that insurance companies alone will get claims of more than Rs 50 billion. This will add a huge burden to the insurance sector. The damage caused to 12 Bhatbhateni stores, Chaudhary Group and other businesses has worried the private sector. More than two dozen vandals and arson took place during the protests, including the Hilton. The hotel sector alone has suffered a loss of more than Rs 25 billion.
Impact on employment and investment
This movement has also had a direct impact on employment. A large number of daily wage workers and employees have lost their jobs due to the closure of hotels, restaurants and other service industries. According to businessmen, such instability may not only put foreign investment but also domestic investment at risk.
Role of Insurance
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The Nepal Insurance Authority (NEA) has directed the insurance companies to make the payment of the claim for the loss caused by the protest as soon and easy. While this has brought relief to the insured, it has also created financial pressure on the insurance companies.
Relief to Rastra Bank
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Nepal Rastra Bank (NRB) Governor Bishwanath Poudel has said that a relief package will be brought. The governor is also going to support this plan.
