AGP Executive Report

Flood Recovery Funding: Nepal’s government-led RDNA puts Bhotekoshi/Rasuwa-Bhotekoshi recovery and reconstruction needs at about USD 4.7 billion (around USD 2.7b damage, plus resilience and risk-reduction). Housing & Cash Support: Cabinet has decided monthly rent and living assistance for flood-displaced families—Rs 15,000 for up to four members plus Rs 2,000 per extra member—until permanent homes are ready. Private Housing Damage: The flood damaged 7,570 private buildings and displaced nearly 33,000 people across five districts, with Nuwakot hardest hit. Resettlement Plan: Bagmati Province says it will relocate families to safer areas, not rebuild on riverbanks. LPG Shortage Friction: Consumers in Kathmandu can’t exchange other brands’ LPG cylinders during the shortage, with authorities and depot rules limiting exchanges to the same company cylinders. Education Expansion: Government is preparing an IoE constituent college in Madhes to cut the need for students to travel for engineering. Labour Market Risk: Nepal is investigating 25 Malaysia-linked recruitment agencies under the FWCMS and has temporarily blocked new pre-approvals for 250 affiliated firms. Energy Infrastructure: MCA-Nepal completed an 18-km transmission line section to the Nepal-India border in nine months. Business & Culture: Kathmandu Metropolitan City seeks federal approval to convert the NAC building at New Road into a multi-storey parking facility.

Women Entrepreneurship: A mentorship programme helped women like mehendi artist Rasika Raut and tailoring entrepreneur Rubi Kumari Sah learn business registration, marketing and digital growth. Flood Finance & Banking: RDNA says 12 commercial banks suffered Rs 724 million in damages from the Aug 26 Bhotekoshi-Trishuli floods, with Agricultural Development Bank hit hardest. Private Sector Relief: Nepal Business Association Qatar and supporting groups raised over NPR 3.8 million for the PM’s Disaster Relief Fund, while Veel donated Rs 10 million and NTA added Rs 150 million for flood rescue, relief and rehabilitation. Transport & LPG Supply: Prithvi Highway’s Krishnabhir track is nearing completion; vehicle movement may resume within a week, easing price pressure and gas disruption. In the meantime, LPG entrepreneurs pledged 50,000 cylinders for Kathmandu, and 233,662 cylinders were sold in five days. Trade Disruption: Mustang Customs collected Rs 1.78b in 15 days as Rasuwagadhi-Kerung closures pushed Chinese imports through Korala. Markets: NEPSE rose 0.66% last week; investors gained about Rs 29 billion in book value. Policy & Oversight: Government started investigating Nepali agencies linked to Malaysia’s FW CMS, and LPG black marketing crackdowns continued.

Bhotekoshi Flood Fallout: Nepal’s banking sector is feeling the shock, with 12 banks’ 17 branches hit and losses estimated at about Rs 720.4 million, while the Prime Minister’s Natural Disaster Relief Fund has climbed to Rs 13.54 billion. Tourism Hit: The Bhotekoshi glacial flood has dealt a major blow to tourism, with preliminary losses estimated at Rs 52.13 billion across hotels, restaurants, trekking routes and related infrastructure. LPG Supply Crunch: To ease Kathmandu’s cooking gas shortage after a road blockage, LPG entrepreneurs have pledged to bring 50,000 cylinders to the capital. Business & Policy: NEPSE edged higher in the shortened week, gaining 0.66% with weekly turnover up 26% to Rs 16.15 billion. Nepal-China Climate Cooperation: Former PM Jhalanath Khanal and FM Shishir Khanal urged stronger Nepal-China coordination on climate security and disaster preparedness after the Bhote Koshi disaster. Hydropower Debate: IPPAN and hydropower leaders say investment uncertainty must be managed with safety-first design, not panic-driven over-stringency.

Bhotekoshi Flood Recovery Funding: Nepal estimates Rs 2.34 billion to rebuild and restore the education sector in Rasuwa after the Aug 26 disaster, with 18 schools affected (11 fully destroyed) and a “Secured Future Scholarship Scheme” for students; City Health Support: Kathmandu Metropolitan City will provide free burn treatment worth up to Rs 200,000 for residents via a Rs 10 million fund to Kirtipur Hospital; Private Sector Relief: USV Pharmaceuticals pledges Rs 15 million for flood healthcare through the Nepal Medical Association, while Veel contributes Rs 10 million and multiple transport firms in Gandaki donate to the PM’s Disaster Relief Fund; Economy Policy Push: Finance Minister Dr Swarnim Wagle says five “special packages” are planned to revive the economy—covering flood recovery, capital market reforms, private-sector revival, FATF grey-list removal efforts, and mobilising international finance; LPG Market Crackdown: Police seize 705 LPG cylinders in Kathmandu and arrest a gas store operator for alleged black marketing; Governance & Oversight: HoR Business Advisory Committee sets parliamentary schedule through Oct 1, and a Supreme Court petition challenges “Green Army” for alleged military-style uniforms used during rescue operations.

Private Sector Push: PM Balen Shah met top entrepreneurs at Singha Durbar, promising a more investment-friendly environment and urging policy/legal reforms; business leaders also flagged low morale from frequent arrests of businessmen after allegations. Central Bank Autonomy & Banking Rules: Finance Minister Swarnim Wagle denied government interference in Nepal Rastra Bank autonomy, saying the Finance Secretary only coordinates fiscal-monetary policy; meanwhile the HoR Finance Committee directed amendments to bank-penalty provisions that could wrongly bar officials from even minor penalties. Capital Markets: NEPSE rose 27.94 points to close at 2,559.49 after the finance minister outlined a 10–12 point stock market reform plan next week. LPG Crisis Crackdown: Police in Kathmandu and Bhaktapur seized hundreds of hoarded LPG cylinders and arrested traders accused of artificial shortages and selling up to Rs 2,800 per cylinder. Flood Recovery Costs & Aid: Government estimated NPR 2.34 billion for Rasuwa’s flood-affected education sector; multiple groups continued donating to the PM Disaster Relief Fund, while Aloft Kathmandu Thamel added Rs 1.5 million. Infrastructure Repair: A Bailey bridge in Baitrawati, Nuwakot, will start within 15 days after foundation work. Labour Migration Oversight: The government began investigating 25 manpower companies over alleged moves to restrict competition in sending Nepali workers to Malaysia. Tourism & Local Economy: Pokhara will build a 17.25 km “Organic Eco Trail” linking Fewa Lake and Panchase with ADB support.

Flood Reconstruction Bill: Nepal estimates it needs Rs 723.315 billion for Bhotekoshi flood reconstruction and recovery, with Rs 473.57 billion earmarked for infrastructure—especially energy (Rs 390.62b) and transport (Rs 73.34b)—after damage to hydropower, solar, roads and bridges. Climate Justice & Loss/Damage: Nepal’s request for emergency support under the UN Loss and Damage Fund has received a response, while Speaker Dol Prasad Aryal said Nepal bears a disproportionate climate burden despite negligible responsibility. Aid & Corporate Relief: Lions Clubs International Foundation approved US$200,000 for flood relief in Nepal, and NWEDC with partners has started immediate financial support for families of missing workers, alongside counselling and compensation planning. LPG Supply Pressure: Kathmandu students staged a roadside cooking protest over the ongoing LPG shortage, while consumers report long queues as imports and transport disruptions bite. Legal Status for Missing: Nepal’s civil law allows families to seek a judicial declaration of death for disaster missing persons even without bodies, avoiding the usual 12-year wait. South Korea Recovery Support: Seoul will send a second disaster relief team to shift from search-and-rescue to reconstruction in flood-hit areas.

Flood Recovery Funding: Nepal estimates NPR 723.315 billion for reconstruction and recovery after the Aug 26 Bhotekoshi floods, with infrastructure needing about NPR 473.57 billion and energy/grid restoration alone pegged at NPR 390.62 billion. Energy Sector Hit: A separate assessment puts the energy and grid recovery bill at Rs 390 billion, citing damage to 13 hydropower projects and five solar plants, plus missing workers. International Aid: UNOPS pledged technical and financial support for long-term integrated reconstruction in Rasuwa. Germany announced EUR 8.05 million in aid, mixing emergency relief and development support. Korean Support: South Korea will send a second 8-member disaster relief team focused on recovery and reconstruction, after its first team completed search efforts. Market Watch: NEPSE fell 13.85 points to close at 2,531.55. Disaster Cashflow: Prime Minister’s Disaster Relief Fund balance stands at NPR 12.43 billion; NNJS added NPR 14.14 million and inDrive contributed NPR 75 million. Policy Response: Parliament’s committee pushes for climate justice as a national issue and urges action against black marketers and artificial scarcity, while the government faces renewed calls for better early warning systems. Business & Supply Chain: Birgunj customs reports a 70% rise in daily imports as northern routes stay disrupted. Sports Sponsorship: Kathmandu Gorkhas extended its partnership with Shikhar Insurance as a “golden partner” for the Nepal Premier League.

Flood Relief & Climate Finance: Nepal will seek about $5B for initial reconstruction this week, framing the Bhote Koshi–Trishuli disaster as a climate justice case; officials say the first phase covers five months and will be shared with the World Bank, ADB and major donor governments. Casualties Update: Nepal’s latest count puts deaths at 1,369 with 5,132 missing as rescue shifts toward hydropower tunnels and recovery. Aid Flows: India’s 8th IAF flight brought 35 tonnes of rescue and forensic supplies; Sri Lanka pledged $1M; Dubai Humanitarian sent 74 tonnes of relief; and Nepal’s PM Disaster Relief Fund received donations including Rs 100M from Nepal Telecom and Rs 2M from Ullens Education Foundation. Accountability & Governance: A parliamentary finance committee session criticized weak disaster preparedness and relief distribution. Energy & Daily Life: The government ordered steps to ease LPG shortages in Kathmandu Valley, including cross-company cylinder exchange. Tourism Hit: Early estimates suggest tourism losses could exceed Rs 50bn, with damage to hotels, vehicles and trekking routes.

Parliament & Climate Finance: Nepal’s House of Representatives has formed a seven-member sub-committee to assess the economic impact of the Aug 26 Rasuwa flash flood and review climate change and climate finance issues, with a report due by Sept 18. Flood Recovery Watch: Rescue teams are focusing on three hydropower tunnels where workers may be trapped, including Chilime and Upper Trishuli 3A/3B, while authorities report 1,367 bodies recovered and 5,132 still missing. Disaster Cost Pressure: Nepal estimates damage from the floods at NPR 387.54 billion, with recovery needing another NPR 7.95 billion and a possible reconstruction bill of $4–$5 billion. Energy & Supplies: Industry Minister Gauri Kumari Yadav says licenses of all 58 gas companies should be revoked over alleged artificial shortages and poor cylinder delivery to Kathmandu Valley. Markets: NEPSE fell 15.43 points to close at 2,545.40 as turnover rose to Rs 1.47 billion. Cross-border Aid: Sri Lanka handed Nepal USD 1 million for humanitarian, relief and recovery efforts.

Disaster Toll Update: Nepal’s flood crisis worsened as a moderate 5.0 earthquake struck late Tuesday (deep focus, limited damage expected) while rescue teams continued searching; Nepal Police reported 1,366 casualties and 4,077 still unaccounted for, with DNA-based identification and burial of unidentified remains underway. US Response: The US State Department says about 70 Americans remain unaccounted for in the Nepal-China border region, down from 75, with 18 now safe; lawmakers also urged Rubio to deploy specialised disaster teams and surveillance support. Climate Finance Push: Nepal’s government has formally requested rapid action from the Fund for Responding Loss and Damage after the Bhotekoshi floods, arguing climate-linked loss and damage must translate into faster payouts. International Aid: Germany announced EUR 500,000+ in emergency assistance plus EUR 200,000 for civil society health support; Dubai Humanitarian dispatched about 74 tonnes of relief supplies to Kathmandu. Regional Business Impact: Tourism groups say the damage is geographically concentrated but livelihoods are hit, while Nepal’s flood-linked disruptions are also reshaping trade and recovery planning.

Flood Relief & Connectivity: WorldLink Communications provided Rs 10.1 million to the Prime Minister’s Disaster Relief Fund for Bhotekoshi flood victims, despite reporting about Rs 35 million in direct network losses; it restored services within three days. LPG Crunch in Kathmandu: LPG supply fell sharply after landslides blocked the Prithvi Highway; only 18,259 cylinders reached Kathmandu Valley on Tuesday versus normal 35,000–40,000 daily demand. China’s Ongoing Aid: China’s fourth batch of emergency supplies for Nepal has departed, including rescue transport, lighting and body disposal items, while earlier batches brought pumps, solar lamps and other relief gear. Climate Justice Push: Nepal demanded £15m in climate compensation from “polluting economies,” arguing the disaster is part of recurring Himalayan risk and calling for loss-and-damage funding to reach the ground. Tourism Signal: World Tourism Network urged global travel firms not to abandon Nepal, saying some regions remain open and verified updates matter for businesses. Business & Risk: ADB approved $5m for Nepal for search-and-rescue, medical support and shelters, stressing resilience and geophysical risk in infrastructure planning. Gen Z Anniversary: Nepal marked the one-year anniversary of the 2025 Gen Z protests that toppled the government, with renewed calls for governance reforms.

Flood Relief & Climate Justice: Nepal is demanding $20m in climate compensation after the Aug 26 Bhotekoshi floods, with the foreign minister urging major polluters to “wake up” as deaths and disappearances pass 1,300 and 5,500 respectively; the push is also framed as a test for global loss-and-damage finance. Tourism Shock: Hotels in Pokhara, Chitwan and Lumbini report cancellations and occupancy below 5% as travel advisories paint Nepal as unsafe ahead of peak autumn season. State Response Under Scrutiny: Nepal’s President Paudel says survivors need “support and reassurance” while rescue and DNA-based identification continue; meanwhile, experts warn infrastructure and early-warning systems are still built on outdated climate assumptions. Digital Shift in Disaster Aid: An IT engineer at the Ministry of Finance built an AI-driven disaster response portal for the Rasuwa-Bhote Koshi crisis, while QR-code donations and corporate/employee contributions push relief funds past NPR 10bn. Business & Economy Fallout: One year after the Gen Z movement, businesses have rebuilt physical damage but confidence and investment remain weak, with the private sector still waiting for relief. Tech for Humanitarian Work: Garuda Aerospace and drone-led efforts are being highlighted for faster assessment in hard-to-reach flood zones.

Disaster Response & Relief Funding: Nepal’s flood death toll climbed to 1,355 with 4,996 still missing, including 589 foreign nationals, as rescue teams continued searches and identification remained a major hurdle. Digital & Operational Coordination: An IT engineer at the Ministry of Finance built a disaster response portal to track casualties, locate missing people and coordinate relief using AI-driven aggregation from official sources. Health Support: Dhulikhel Hospital will provide free health services to flood-affected families in Rasuwa for one year. Political & Financial Contributions: Nepali Congress contributed Rs 10 million to the Prime Minister Disaster Relief Fund, while Nepal Rastra Bank employees donated NPR 13.8 million. Energy & Hydropower Impact: Contractors at the Upper Trishuli-1 hydropower project are preparing a relief package for about 1,433 workers, and the floods are framed as a major blow to the hydropower sector. Supply Chain & Gas: Petroleum supply and food distribution were disrupted after a Prithvi Highway collapse, while cooking gas distribution in Kathmandu was ramped up via alternative routes. Governance & Risk Management: A study on the Koshi Basin warns that misaligned priorities and coordination gaps are increasing disaster risks. Urban Mobility: Kathmandu plans to expand night bus services with 21 buses and six new routes, aiming to support the valley’s night-time economy. Environment Enforcement: Industry Minister issued a one-week ultimatum to polluters in the Sirsiya River corridor to improve compliance. Tourism Recovery: The “Nepal Calling” campaign urges visitors not to postpone trips as the country tries to protect the autumn tourism season.

Nepal Flood Toll & Missing: Nepal’s flash floods have killed about 1,342–1,344 people, with nearly 5,000 still missing as rescue teams struggle to identify bodies, including 589 foreign nationals. Tunnel & Cross-border Rescue: Searches are continuing in hydropower tunnels with international support, while on the China side 43 dead and 519 missing were reported after the mudslide destroyed the Gyirong border crossing. Trade Hit: The disaster has wrecked the main Nepal–China trade route via Rasuwagadhi, with traders warning of billions in losses and festival goods destroyed. Hydropower Exports Disrupted: Flood damage has knocked out generation and halted electricity exports, including supplies to Bangladesh. LPG Crisis in Kathmandu: With the Prithvi Highway disrupted, about 88,000 gas cylinders reached Kathmandu via alternative routes, but shortages and price pressure are still hurting households and restaurants. Digital Relief Shift: Nepal’s disaster giving is going digital—QR and mobile payments pushed the Prime Minister’s Disaster Relief Fund past NPR 10 billion. Diplomacy for Recovery: Nepal and South Korea agreed to keep close cooperation on rescue and reconstruction, while Bangladesh discussed climate cooperation ahead of COP-31. Aviation/Logistics Disruption: Separately, Indonesia closed major airports due to volcanic ash, stranding around 170,000 passengers.

Nepal–South Korea Talks: Foreign Minister Shisir Khanal met Cho Hyun in Kathmandu to coordinate search, rescue and relief after the Bhote Koshi floods, with Seoul pledging support for post-disaster reconstruction and climate-focused cooperation. Floods Hit Trade: The Rasuwa-China land route via Rasuwagadhi was badly damaged, leaving traders scrambling as goods worth billions of rupees for Dashain/Tihar were reportedly destroyed and customs operations disrupted. Digital Relief Shift: Nepal’s relief giving is moving fast via QR and international card payments, with Finance Ministry data showing billions of rupees raised through electronic channels into the Prime Minister’s Disaster Relief Fund. Gas Supply Restored: After the Prithvi Highway blockage at Krishnabhir, Nepal Oil Corporation arranged alternative logistics, bringing nearly 88,000 LPG cylinders into Kathmandu in three days. Climate Finance Push: Nepal asked the UN Loss and Damage fund for emergency financing, arguing domestic capacity is overwhelmed and pushing for faster, concrete payouts. Corporate/Legal Fallout: Berger Paints was ordered by Nepal’s Consumer Court to compensate customers over substandard products, adding pressure on consumer protection and business compliance.

Disaster & Rescue: Nepal’s flash floods and mudslides along the Nepal–China border have killed 1,344 people, with about 5,000 still missing as rescuers continue tunnel searches; in fresh breakthroughs, a Chinese national was pulled alive from the Upper Trishuli-1 hydropower tunnel after 10 days, and a 64-year-old woman was rescued from debris in Nuwakot. Energy & Business Impact: The floods have disrupted hydropower generation and hit cross-border power flows—Bangladesh faces a fresh power squeeze as Nepal’s exports to Bangladesh reportedly fall to zero after Chilime and Trishuli projects stopped. Aid, Technology & Recovery Costs: Switzerland handed over a Flyability drone to NEA for safer tunnel inspections; AEPC is distributing solar systems and portable cook stoves to restore basic energy services, while UN partners launched a $49.6m emergency appeal. Insurance & Finance: Insurers warn commercial losses could top NPR 20 billion (about $132m), with hydropower projects driving most claims. Gas Supply Pressure in Kathmandu: Road damage has disrupted LPG supply, pushing prices up by about Rs 105 per cylinder and worsening shortages. Diplomacy & Climate Justice: PM Balendra Shah is set to address the UNGA on Sept 24 to push climate-linked compensation; South Korea’s FM Cho Hyun arrived to coordinate search support for nine missing Koreans. Governance & Social Issues: Nepal’s anti-trafficking day stresses tech vigilance; police are probing racist online posts about Nepal flood victims and missing people.