Nepal faces economic shock as damage costs projected to surge into billions, says FM Wagle to US biz news channel
Kathmandu, August 28: The devastating Bhotekoshi floods have caused widespread devastation in Nepal. Regarding the damage caused by the floods, Nepal’s Finance Minister Swarnim Wagle said on Friday that the country is expected to suffer losses of several billion dollars.
Speaking to Bloomberg Television, Finance Minister Swarnim Wagle said that when a detailed assessment of the damage is done in the next week or two, the total cost is expected to reach at least a few billion dollars. He described the initial loss estimates as “very worrying.”
Meanwhile, the Nepal government has released 10 million rupees each for Rasuwa and Nuwakot, and 5 million rupees for Dhading to provide immediate relief to the flood-affected districts. Essential supplies such as food, water, tents, blankets, solar lamps, generators, and power banks are being provided to the affected people. Fuel supplies are also continuing to the affected areas.
The disaster struck on September 10 after a large section of ice and rocks collapsed near the Nepal-China border. The incident affected an area of approximately one square kilometer and felt like an earthquake of magnitude 5.2.
Subsequently, a massive amount of water entered the Bhotekoshi and Trishuli river systems, raising their water levels and causing widespread flooding in many areas. The floods have caused significant damage to life, roads, electricity, and other infrastructure.
Currently, Nepal faces a dual challenge following the Bhotekoshi floods. While providing relief and essential services to the affected people is essential, restoring the extensively damaged infrastructure will require significant financial resources.
