Story perspectives

Nepal Faces Economic Turmoil Amid Deadly Protests

9/20/2025

Summary

Story summary

Social unrest in Nepal has raised economic concerns, according to Fitch Ratings.
Interim Prime Minister Sushila Karki plans to tackle corruption and enhance living standards following protests that caused 72 deaths and over 2,100 injuries.
The unrest has inflicted damage estimated between $1 billion and $1.5 billion, impacting infrastructure and tourism.
Insurance claims from the protests have surpassed Rs 20.70 billion.
The Nepal Rastra Bank has withdrawn Rs 90 billion to address excess liquidity amid ongoing instability.

History

Historical Context

The Nepalese Civil War (1996-2006) resulted in over 17,000 deaths and significant internal displacement, driven by the Communist Party of Nepal (Maoist) seeking to overthrow the monarchy. The conflict culminated in the establishment of a federal democratic republic in 2006. Current unrest, echoing historical grievances, has led to 72 deaths and $1.5 billion in damages, as Interim Prime Minister Sushila Karki confronts ongoing corruption issues.

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Story summary

Social unrest in Nepal has raised economic concerns, according to Fitch Ratings.
Interim Prime Minister Sushila Karki plans to tackle corruption and enhance living standards following protests that caused 72 deaths and over 2,100 injuries.
The unrest has inflicted damage estimated between $1 billion and $1.5 billion, impacting infrastructure and tourism.
Insurance claims from the protests have surpassed Rs 20.70 billion.
The Nepal Rastra Bank has withdrawn Rs 90 billion to address excess liquidity amid ongoing instability.

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