FNCCI, World Bank hold discussions on flood damage to Nepal's private sector

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the World Bank held high-level talks on Tuesday. The talks followed recent floods in Rasuwa and surrounding areas that inflicted extensive damage on Nepal’s private sector.

The meeting took place at the FNCCI Secretariat in Teku and brought together FNCCI President Anjan Shrestha and the World Bank’s Senior Country Economist for Nepal, Abdoul Ganiou Mijiyawa, to discuss the disaster’s economic repercussions and the immediate difficulties faced by commercial enterprises. Preliminary government evaluations put losses and damage at about Rs 387.5 billion, though full assessments remained ongoing.

President Shrestha said the floods should not be treated merely as a natural disaster and urged stakeholders to consider the wide-ranging consequences for national economic activity. He reported severe damage across multiple districts, including Rasuwa, Nuwakot, Dhading and Chitwan, and said hydropower projects, transmission infrastructure, roads, bridges, homes and commercial properties have suffered damage.

Shrestha added that, alongside physical destruction, disruptions to supply chains, transport, electricity, market access and trade presented immense challenges for the business community. He warned that interruptions along the Rasuwagadhi trade corridor risked undermining trade with China and the national supply network, and that importers, traders, transport operators and consumers beyond the immediate flood zones could also be affected.

Mijiyawa sought detailed information on private sector losses, operational interruptions and supply chain disruptions, and enquired about impacts on transport, trade, industry, tourism and small and medium-sized enterprises. He said further concrete facts were required on direct and indirect commercial impacts and on rehabilitation progress, and that a clear conclusion on the floods’ effect on Nepal’s economic growth could only be reached after analysing a detailed damage report.

President Shrestha said FNCCI was collecting damage details with the assistance of local chambers of commerce and industry, but that accurate data collection was hampered where entire settlements had been swept away. "We are collecting details of the damage with the assistance of local chambers of commerce and industry. However, collecting accurate details is posing a problem as entire city settlements have been swept away by the floods," he said.

World Bank representatives expressed sympathy for the hardships endured by the private sector and local citizens and indicated interest in exploring necessary assistance and joint efforts to support rehabilitation of affected communities and businesses and the revival of economic activity.

The meeting also covered the upcoming Nepal Development Update 2026. World Bank officials said direct insights and data from the private sector were vital for the publication, and President Shrestha requested that the study examine impacts on production, employment, income, trade, investment, debt and private sector business morale as well as the physical destruction caused by the floods.