Nepal May Need Up to $5 Billion for Flood Reconstruction, Finance Minister Says

Nepal may require between $4 billion and $5 billion to rebuild after this week's catastrophic floods, Finance Minister Swarnim Wagle said on Saturday, estimating the cost at nearly one-tenth of the country's economy.

"The preliminary estimate suggests reconstruction could require between $4 billion and $5 billion," Wagle said. "This is still only an initial assessment, and the process of determining the full extent of the damage is ongoing."

He noted that the reconstruction cost is expected to be lower than the amount required after Nepal's devastating 2015 earthquake, although he did not explain why.

The disaster was triggered on Wednesday when a glacier collapse in the Himalayas sent massive amounts of rock, ice, mud, and debris rushing downstream, causing widespread flooding across parts of Nepal and China's Tibet region.

More than 600 people have been killed, while over 2,000 remain missing, according to official figures.

The floods have devastated several towns and communities near the Nepal-China border, washing away bridges and roads and severely damaging key infrastructure. Several major hydropower facilities were also affected by the disaster.

The floods are expected to deliver a significant setback to Nepal's economy, which relies heavily on remittances from overseas workers, tourism, and hydropower generation.

Officials said damaged hydropower projects account for more than 12 percent of the country's total electricity generation capacity, raising concerns over both energy supply and economic recovery.

Restoring electricity production alongside rebuilding damaged infrastructure is expected to be one of the government's biggest challenges in the months ahead.

Nepal's 7.8-magnitude earthquake in 2015 remains the deadliest natural disaster in the country's history, killing nearly 9,000 people and destroying more than 500,000 homes.

The earthquake caused economic losses equivalent to nearly one-third of Nepal's GDP, with reconstruction costing approximately $9 billion.

Although the current disaster is expected to require a smaller financial response, authorities are continuing to assess the full scale of the damage before issuing a final estimate.