The National Planning Commission (NPC) has proposed a slew of relief measures and financial incentives to support the reconstruction of private infrastructure damaged during the GenZ protests in September last year.
As per a detailed action plan prepared by the commission, all reconstruction works will be completed within three years.
The total damage sustained by the private sector has been estimated at Rs 33.54bn. This includes losses suffered by business establishments (Rs 27.49bn) and private homes (Rs 6.05bn). An insurance claim of Rs 23bn has been made for losses incurred by the private sector.
The NPC has proposed 10 types of facilities for the private sector to assist in reconstruction or renovation of infrastructure damaged during the protests. It has suggested that local governments waive off building drawing approval fees for rebuilding damaged private structures. Likewise, it has called for property tax exemptions for up to three years for affected private businesses, depending on the extent of damage.
To ease financial stress on the private sector, the NPC has urged the government to make necessary arrangements for immediate disbursement of insurance claims for insured properties. If insurance companies are facing problems in disbursements due to liquidity shortages, the NPC has proposed the government to provide businesses short-term loans at concessional interest rates.
Similarly, NPC has urged provincial governments to waive off vehicle taxes when deregistering vehicles that were completely destroyed during the protests.
For businesses struggling with liquidity, the commission has recommended restructuring their existing loans. It has proposed allowing companies whose working capital assets were fully damaged to convert their loans into installment-based financing upon request. These restructured loans could retain their existing classification status until the end of the current fiscal timeline, providing relief from immediate financial penalties, NPC added. In addition, the NPC has called on the government to extend the deadline for loan rescheduling and restructuring for affected businesses until mid-July 2026.
The NPC has also proposed concessional lending for reconstruction. Borrowers seeking loans to rebuild homes, commercial buildings or other physical assets could access credit at a fixed interest rate capped at a base rate plus a premium of just 0.5 percent for up to five years.
Similarly, individuals, who suffered losses while inside public offices during the protests, would be provided compensation for damage to private vehicles, mobile phones, laptops and clothing that claims of such losses are supported by official police documentation. Concerned District Administration Offices would be responsible for distributing relief amounting to up to 25 percent of the total loss to such individuals.
Meanwhile, the NPC has estimated that a total of Rs 36.3bn will be required for reconstruction and management of damages on public property across all three tiers of government. Of this, the federal government will bear the largest share at Rs 24.69bn, followed by Rs 3.74bn by provincial governments and Rs 7.86bn by local levels.
According to the NPC, Rs 19.98bn will be needed for repair and reconstruction of buildings, Rs 6.16bn for procurement of vehicles, and Rs 10.15bn for recovery of other assets.
In terms of annual spending, NPC has said that the federal government may have to allocate Rs 4.34bn in the current fiscal year and Rs 10.17bn each in the following two years. Similarly, provincial governments would require Rs 810m this year and Rs 1.46bn annually for the next two years, while local governments are projected to spend Rs 1.42bn this year and Rs 3.21bn annually over the next two years.
To arrange resources for reconstruction, the NPC has advised the government to cut small, fragmented projects that do not yield immediate results. It has also recommended fully implementing the policy of not undertaking infrastructure projects costing less than Rs 30m at the federal level. The NPC has said that such projects could be transferred to lower tiers of government through conditional grants. It has also suggested discontinuing smaller-scale programs funded through conditional grants.
