Kathmandu, Nov 21: The Physical Infrastructure Reconstruction Fund, established by the government to rebuild damaged physical structures during the Gen Z movement, has not been able to collect the expected amount.
According to the Ministry of Finance, only Rs 82.8 million has been so far deposited in the fund as of Wednesday. Even after two months of its establishment, the fund has not received contributions as expected, ministry officials said. The government had established the fund on September 24, 2025.
Finance officials understand that the private sector itself suffered heavy losses during the Gen Z movement, so many companies are not in a position to contribute this time.
Similarly, banks and financial institutions—which could have contributed large amounts—have not deposited funds because there is no regulatory provision allowing them to use their Corporate Social Responsibility (CSR) funds for this purpose.
The Ministry of Finance had also appealed to friendly nations, development partners, and international agencies to support the fund, but no contributions have been received from them yet. Although individuals were also allowed to contribute, public interest has remained low, officials said.
So far, Nepal Life Insurance and the Construction Business Development Council have each contributed Rs 10 million, while NLG Insurance has deposited Rs 2.5 million. Other than these, no significant contributions have come from private entities or from abroad.
Many public buildings, including Singh Durbar, Supreme Court, Federal Parliament Building, President’s Office, were damaged due to arson and vandalism during the protests. Although private sector establishments also suffered similar damage, many of them had insurance coverage, so they are set to receive compensation. However, government infrastructures were uninsured, meaning the government must arrange funding for reconstruction itself.
The government’s preliminary estimate suggests that the Gen Z movement caused damages worth around Rs 80 billion. Compared to the required budget for reconstruction, the amount collected so far is extremely minimal.
With an election approaching (March 5, 2026) — requiring significant expenditure — and additional funds needed for reconstruction, the government decided to raise money through the fund.
The government had announced special incentives to attract industries and businesses to contribute to the fund, but these measures have not had a noticeable impact. The ministry had offered tax deductions from this fiscal year’s taxable income for companies contributing to the fund. #genz #nepal
