Updated 13 sec ago
August 29, 2026 06:08
Updated 13 sec ago
August 29, 2026 06:08
Nepal may require between $4 billion and $5 billion to recover from this week’s catastrophic flooding, according to Finance Minister Swarnim Wagle, who described the projected cost to Reuters on Saturday as equivalent to nearly a tenth of the country’s economy.
“The initial estimate is between $4–$5 billion. Just an estimate,” Wagle said. “We will require much less than what we needed for the 2015 earthquake. Loss and damage is being assessed.”
The disaster was triggered on Wednesday when a glacier collapse sent a massive torrent of rock, ice, mud, and debris through Himalayan river systems. The floods have claimed more than 600 lives across Nepal and China’s Tibet, with over 2,000 people still reported missing.
The floodwaters devastated communities along the border, destroying bridges and roads while severely damaging major hydropower infrastructure.
Wagle did not provide further details on why the current reconstruction costs are expected to fall below the $9 billion required following Nepal’s 2015 magnitude-7.8 earthquake—the country’s worst recorded disaster. That quake killed nearly 9,000 people, destroyed more than half a million homes, and caused losses estimated at roughly one-third of Nepal’s economy.
Despite the comparatively lower projected costs, Wednesday’s floods represent a significant setback for an economy heavily dependent on remittances, tourism, and hydropower. The destruction has particularly impacted power projects that collectively account for more than 12 percent of the nation’s generating capacity.
