I'm afraid that you are trying to use Verilog the wrong way. q is a wire, not a variable (a reg) so it cannot be assigned with a value that includes itself, because that would cause a combinational loop. You are using the assign statement as if it were a regular variable assignment statement and it's not.
Declare a and q as reg, not wire. i and k don't need to be genvars variables, unless you are trying to generate logic by replicating multiple times a piece of code (description). For for loops that need to behave as regular loops (simulation only) use integer variables.
Besides, behavioral code must be enclosed in a block, let it be combinational, sequential, or initial.
A revised (but I cannot make guarantees about its workings) version of your module would be something like this:
module prv(
input wire [7:0] x,
input wire [7:0] y,
output reg [49:0] z
);
reg [24:0] q;
reg [25:0] a;
integer i,k;
initial begin
z = 1;
for (k=50; k<0; k=k-1) begin
a = 0;
q = x;
for (i=0; i<8; i=i+1) begin
if (q[0] == 1) begin
a = a + z;
end
{a,q} = {a,q}>>1;
end
z = {a[24:0],q};
end
endmodule