ANKARA

Nepal’s interim government has rolled out a much-demanded relief and austerity package to address the massive destruction caused during youth-led "Gen Z" protests earlier this month, local media reported Thursday.

The widespread protests left more than 70 people dead and caused billions of dollars in damage. The estimated loss is nearly equal to Nepal's budget for one and a half years, or close to half of the country’s GDP, local English daily the Kathmandu Post reported.

The package, approved by the Cabinet is aimed at stabilizing fragile sectors, facilitating recovery and ensuring continuity of economic activities following the violent protests that led to the ouster of the elected government of Prime Minister KP Sharma Oli.

An initial assessment by the private sector suggests that businesses alone lost around 80 billion Nepalese rupees ($563 million) and nearly 15,000 direct jobs were affected, with tourism among the hardest-hit industries.

The relief package includes several concessions to help businesses resume operations. Businesses and professional institutions affected by vandalism, arson or looting will get a 50% exemption on customs and excise duties to import furniture, machinery and equipment.

For uninsured businesses that suffered losses, tax authorities will recognize valuations through simplified procedures, allowing deductions under the country's tax laws.

Other measures include reconstruction loans and an extension in repayment timelines for both principal and interest.

Another key provision of the package is the introduction of a Payroll Protection Scheme to ensure employees in affected businesses are not left jobless.

“This measure is designed to prevent mass layoffs and ensure that workers continue to get their wages while businesses rebuild,” the government draft said.

Alongside the relief package, the government has also unveiled a stringent austerity drive to control expenditure.

All small-scale projects at provincial and local levels have been scrapped, and the government will no longer fund new projects launched this fiscal year.