“Private Sector Begins Reconstruction with Insurance Advance Payments”, Says Finance Minister Khanal

Kathmandu — Finance Minister Rameshwor Khanal has said that the private sector has started rebuilding its assets using 50 percent advance payments provided by insurance companies as part of the post-Gen-Z recovery effort.

Speaking at a meeting of the Federalism Strengthening and National Concerns Committee on Tuesday, Minister Khanal informed that insurance companies have begun implementing the Business Recovery Plan, which directed them to issue 50 percent of the estimated compensation amount in advance, even before full damage assessments were completed.

“We had said in the Business Recovery Plan that insurance companies should provide 50 percent of the estimated amount in advance so that businessmen can immediately begin rebuilding. This is now being implemented, and the private sector has started reconstruction in several areas,” he said.

According to Minister Khanal, insurance companies have already disbursed Rs 2 billion in cash advances, and several business owners have restarted their operations using that amount. He further stated that insurers have estimated around Rs 27 billion in private sector losses, of which Rs 3.5 billion has been assessed by surveyors, and Rs 2 billion has already been released as advance payments.

“Some businesses have already resumed their work. Even Chandragiri Hills recently announced the restart of its reconstruction process, and two or three Bhatbhateni outlets are expected to reopen within two months,” he added.

The Minister also informed that the Nepal Rastra Bank (NRB) has arranged provisions for additional loans to businesses that may need further financial support during the rebuilding process.

The committee meeting also discussed the government’s public expenditure management during the emergency created by the Gen-G Movement, the criteria for expenditure control, measures to curb revenue leakage, the implementation of fiscal federalism, and initiatives to improve the business environment amid ongoing recovery efforts.