Devastating floods in the Bhotekoshi River have caused an estimated Rs 79.17 billion in damage across four districts, directly impacting 32,872 people, according to a preliminary survey by the National Planning Commission, a key planning body of the Nepali government. The floods severely affected 6,817 households and 499 businesses and establishments in 15 local units across Rasuwa, Nuwakot, Dhading, and Gorkha districts.
The survey indicates that households suffered Rs 69.57 billion in damage, while businesses and establishments incurred losses of Rs 9.60 billion. The International Labour Organization (ILO), a specialized agency of the United Nations that sets international labour standards, estimated on October 1, 2026, that the impact of the floods extends far beyond the directly affected areas.
Economic and employment impact
The Bhotekoshi floods have severely disrupted employment and livelihoods in the affected region. The ILO’s preliminary assessment on October 1, 2026, revealed that approximately 21,400 jobs are at risk within a four-kilometre radius of the flood-affected areas. A report from October 14, 2026, further stated that over 12,000 people have lost their jobs, and 568 commercial firms and companies have been directly impacted.
A rapid government damage assessment estimates the total flood damage at approximately Rs 408 billion, representing about six percent of Nepal’s gross domestic product. Businesses alone have suffered an estimated Rs 146 billion in damage across approximately 4,800 establishments.
Banking sector and infrastructure damage
The floods have also affected the banking and financial sectors. Nepal Rastra Bank, the central bank of Nepal, issued a directive on October 14, 2026, instructing licensed ‘A’, ‘B’, and ‘C’ class banks and financial institutions to extend the principal and interest payment deadline for flood-affected borrowers until Poush-end 2083 (BS). This relief applies to enterprises, projects, or businesses directly affected in the Bhotekoshi and Budhigandaki flood-hit areas, businesses reliant on import or export through the Rasuwa customs point, and borrowers impacted in the flood-affected regions.
The Nepal Bankers’ Association, the umbrella organization of commercial banks in Nepal, reported on October 13, 2026, that banks have disbursed Rs 2.42 billion in loans in the flood-affected areas.
Infrastructure has sustained extensive damage, with the Rasuwa trade point, which connects Nepal with China, currently obstructed, directly impacting import and export activities. More than 200 hotels and restaurants have been affected at the start of the tourism season. Additionally, 13 hydropower projects with a combined capacity of 759 megawatts have been impacted, posing challenges to the national energy supply.
The floods damaged 4,151 building structures belonging to 3,067 homeowners. Of these, 2,989 structures, or 72.01 percent, were completely destroyed, and 3,194 structures, or 76.95 percent, are beyond reuse, highlighting a significant reconstruction challenge.
Inflationary pressure and ongoing efforts
The loss of life and property, coupled with repeated damage to roads and other infrastructure, has disrupted the supply chain, putting upward pressure on domestic market prices, according to Guru Prasad Poudel, spokesperson for Nepal Rastra Bank, on Ashwin 30, 2083 (BS). The average inflation rate increased by 6.34 percent last Bhadra, a 4.47 percentage point rise compared to the same period last year.
While the direct impact of the current floods on Madhesh Province is not detailed in available information, past floods have generally affected urban and rural residents from Parsa to Saptari in the province. The Provincial Police Office stated that floods have historically caused billions in property damage across Madhesh Province, though precise figures are pending.
To date, 13,101 people have been rescued from the flood-affected areas. According to updated figures from the National Disaster Risk Reduction and Management Authority (NDRRMA), a government body responsible for disaster risk reduction and management in Nepal, 1,331 bodies have been recovered, while 5,000 people remain missing. The government plans to expand the flood early warning system in six river basins and reduce the risk of glacial lake outburst floods by lowering water levels in four large glacial lakes. The ‘GLOF Sanjeevani Project’ proposes to reduce water levels and mitigate risks in four glacial lakes between 2026 and 2033, with an estimated cost of 49.9 million US dollars. Officials estimate that approximately five billion US dollars will be needed for Nepal’s recovery.
For more information on the ongoing relief efforts, please refer to our earlier coverage: Red Cross and government agreement: Housing for 1,000 Bhotekoshi flood-affected families and Flood victims’ insurance claims exceed Rs 20 billion, payouts limited to Rs 230 million.
