Austerity with a Purpose

The country’s interim government has moved swiftly to respond to the massive devastation triggered by the September 8–9 Gen-Z movement, which claimed 74 lives and caused losses amounting to nearly half the country’s GDP. The Finance Ministry has introduced a package of economic relief alongside strict austerity measures. Businesses hit hard by arson and looting will receive customs and excise duty exemptions to replace destroyed equipment, concessional loans for rebuilding, and tax deductions for verified losses. Insurance companies are required to settle 50 percent of insured claims, and a Payroll Protection Scheme will help firms retain employees. Tourism, one of the most affected sectors with losses exceeding Rs 25 billion, will receive special support, and companies replacing vehicles can access funding of up to 80 percent.