Nepal has announced a special relief package for businesses affected by the devastating Bhotekoshi floods while beginning preparations to relocate communities whose homes and settlements were destroyed.
The measures form part of the government’s first phase of recovery following the August 26 floods, which swept away homes, roads and bridges and devastated settlements along the Trishuli riverbanks.
Businesses to get major relief
Under the package, businesses whose commercial vehicles, machinery, plants, tools and other equipment were destroyed beyond repair or swept away can import replacements without paying customs duties.
Businesses whose goods were destroyed after customs duties had already been paid will also receive relief, provided replacement goods are imported through any customs office within six months.
The government has also extended tax filing and payment deadlines for affected taxpayers until November 11, 2026. Provincial and local governments have been asked to consider temporary concessions on property taxes, business taxes, building permit fees and other local charges.
Loan repayment and insurance eased
Flood-affected borrowers will be allowed to restructure or reschedule loans once, with extensions for repayment of principal and interest.
Banks will also be able to provide loans to businesses needing to replace damaged vehicles, machinery and equipment. For one year, eligible borrowers will receive a lower interest rate based on the government’s prescribed formula.
Insurance claims are also set to move faster, with insurers directed to simplify assessments and provide advance payments of up to 50 per cent based on preliminary damage reports.
Safer settlements planned for displaced families
Alongside economic relief, Nepal is preparing a longer-term response for communities that can no longer safely return home.
Authorities are mapping settlements destroyed by the floods and identifying safer locations for relocation. The government plans to first restore key roads and bridges before developing new settlements away from flood-risk zones.
The recovery effort therefore extends beyond immediate relief, with Nepal seeking to help businesses restart while giving displaced families a safer place to rebuild their lives.