Nepal may need nearly a tenth of its economy to rebuild after devastating floods

Nepal may require nearly one-tenth of its economy to rebuild following devastating floods, according to the country's finance minister, Swarnim Wagle. The estimated cost of reconstruction ranges between $4 billion and $5 billion, Reuters reported on Saturday. Wagle emphasized that this estimate is lower compared to the $9 billion spent on reconstruction following Nepal's devastating earthquake in 2015.

Initial reports indicate that the floods have claimed the lives of over 600 people in Nepal and seven in China's Tibet. The disaster has left more than 2,000 people unaccounted for. Over 2,426 people have been declared missing across the affected areas.

The floods have caused significant damage to towns in the border region, destroying bridges and roads and damaging major hydropower stations. The disaster has dealt a blow to Nepal's economy, which is heavily reliant on remittances, tourism, and hydropower.

More than 12% of Nepal's national generating capacity has been damaged by the floods, which disrupts crucial power projects. The reconstruction estimate is believed to be lower due to the scale of damage caused by the 2015 earthquake.

Search and rescue operations faced temporary disruptions due to adverse weather conditions in some areas. Nepal has reached out for specialized foreign technical assistance to help rescue people trapped in tunnels, restore transport and communication links, identify bodies, and conduct DNA testing. India has sent relief material, including blankets, medicines, food, and water purification tablets, through three flights.