Nepal Cabinet Announces Recovery Package After Bhotekoshi Flood, Ministers Give One Month’s Salary
The Cabinet has directed the Finance Ministry to prepare a Business Recovery Package for people and businesses affected by the Rasuwagadhi-Bhotekoshi flood, while the Prime Minister and all ministers will contribute one month’s salary to the disaster relief fund. The government also approved in principle the G2G purchase of 25,000 metric tons of DAP fertilizer from India.
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KATHMANDU, August 28, 2026 (Bhadra 12, 2083)
The Nepal government has announced three major decisions following the devastating flood that struck the Nepal-China border at Rasuwagadhi, the Bhotekoshi River and downstream areas on Bhadra 10. The Cabinet directed the Finance Ministry to prepare a relief and Business Recovery Package for affected individuals and businesses, approved a government-to-government purchase of DAP fertilizer from India, and decided that the Prime Minister and all Cabinet members would contribute one month’s salary or remuneration to the Prime Minister Disaster Relief Fund. The measures are aimed at supporting recovery from the disaster while also addressing the country's fertilizer supply needs.
Recovery Package For Flood Victims
The Cabinet has instructed the Ministry of Finance to prepare a concessional relief and rehabilitation package, described as a Business Recovery Package, for people and commercial institutions that suffered losses in flood-affected districts.
The package is expected to focus on helping affected families and businesses recover from the economic damage caused by the disaster. However, the government has not yet publicly detailed how much financial support will be available, who will qualify, or what specific concessions will be included.
Prime Minister And Ministers Give One Month’s Salary
In a direct contribution to the disaster response, the Prime Minister and every member of the Council of Ministers will contribute one month of their salary or remuneration to the Prime Minister Disaster Relief Fund.
The money is intended to support people affected by the Bhadra 10 flood in the Rasuwagadhi and Bhotekoshi areas as relief, recovery and rehabilitation efforts continue.
25,000 Tons Of DAP From India
In a separate decision, the Cabinet granted in-principle approval to Agriculture Inputs Company Limited to purchase 25,000 metric tons of DAP fertilizer from the Government of India.
The fertilizer will be procured through a Government-to-Government (G2G) arrangement, allowing the state-owned company to move forward with the procurement process.
Three Major Cabinet Decisions
The government's decisions can be summarized as:
Flood Recovery: Finance Ministry tasked with preparing a relief and Business Recovery Package for affected people and businesses.
Fertilizer Purchase: In-principle approval granted to procure 25,000 metric tons of DAP from India through G2G.
Salary Contribution: Prime Minister and all Cabinet members to contribute one month’s salary or remuneration to the Prime Minister Disaster Relief Fund.
Why The Decisions Matter
The Cabinet's response moves beyond immediate search and rescue toward the longer process of rebuilding livelihoods and businesses damaged by the flood. The recovery package could become an important source of support for affected communities, although its actual impact will depend on the assistance, eligibility criteria and implementation measures eventually announced by the Finance Ministry.
At the same time, the fertilizer decision addresses a separate national agricultural requirement, while the salary contribution adds resources to the government fund being used to support disaster-affected communities.
Published 1 hour ago in Nepal