COVID-19 marred 2020 in Nepal, with 264.000 confirmed cases and 2.800 registered deaths. Strict lockdown rules from March 24 to July 21 wreaked havoc with the economy, causing much distress among workers, particularly in the informal sector. With land borders with India and China closed, and international flights suspended for parts of the year, remittances and tourist incomes (usually 33% and 8% of GDP respectively) dropped sharply. By year end, GDP growth was at 1.8%, compared to 7% in 2019. To cap off a stressful year, Prime Minister Oli dissolved Parliament in December 2020, prompting protests and instability.
The social protection response by the government of Nepal to the COVID-19 crisis was mainly through delivering relief packages to vulnerable households during the initial peak (March-May). These relief package included food aid, a 10% reduction on essential food items, and a 25% reduction on electricity bills. Informal sector workers who lost their jobs were offered positions in public employment programmes for minimum wage, or provided with 25% of the local minimum wage if they chose not to participate.
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