Nepal’s Citizens Investment Trust Bill: Strengthening Risk Control & Domestic Savings
24th September 2026, Kathmandu
As Nepal navigates a massive gap between national revenue collection and developmental expenditures, mobilizing internal savings has taken center stage in economic policy.
During a recent meeting of the House of Representatives, Acting Prime Minister and Finance Minister Dr. Swarnim Wagle addressed lawmakers during theoretical discussions on the Citizens Investment Trust (Third Amendment) Bill, 2083.
With the Trust currently managing public savings totaling approximately Rs 337 billion, Finance Minister Wagle assured parliamentarians that future capital mobilization will prioritize strict risk management, transparency, and high result orientation.
Bridging Nepal’s Investment Gap Through Domestic Savings
Opening the discussion, Finance Minister Wagle underscored that national savings alone are insufficient to sustain the country’s targets for economic growth and job creation. With last year’s revenue collection resting at roughly Rs 1,250 billion against an estimated expenditure target of Rs 2,124 billion for the current fiscal year, a deep financial gap persists.
To counter this, the government is looking to tap both internal and external sources, positioning the Citizens Investment Trust (CIT) as an essential engine for domestic resource mobilization. While addressing suggestions to integrate similar entities like the Employees Provident Fund and the Social Security Fund, Wagle noted that although their initial mandates differ, they operate as powerful complementary instruments for national monetary and fiscal policy execution.
Key Pillars of the Citizen Investment Trust (Third Amendment) Bill, 2083
The new legislative push seeks to modernize the foundational CIT Act of 2047 BS to better suit contemporary financial landscapes:
Capital Restructuring: The bill scales up authorized capital to Rs 10 billion, structuring it into 100 million shares at Rs 100 each.
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Expanded Investment Horizons: Moving beyond conservative boundaries, the framework permits investments in SEBON-registered mutual funds, private equity, venture capital, and national priority projects spanning energy, IT, and infrastructure.
Modernized Governance & Accountability: The amendment introduces double-entry accounting systems, digital record-keeping mandates, and strict tenure limits for executive leadership to ensure transparent oversight.
Prudent Risk Management Over High-Risk Speculation
A core concern raised by lawmakers during the parliamentary session centered on safeguarding public funds against overexposure to volatile or high-risk sectors. Welcoming these cautions, Minister Wagle assured that the government adopts a conservative approach when handling hard-earned citizen savings.
“The Government of Nepal holds the view that we must remain somewhat conservative in such public institutions… ensuring that the government and the Citizens Investment Trust are extremely serious about risk management.” — Dr. Swarnim Wagle, Finance Minister
Wagle emphasized that risk management under the new framework will enforce clear sector-wise investment caps, strict discipline, and robust conflict-of-interest safeguards from the project selection stage onward. While acknowledging concerns that excessive caution might leave capital idle, he reiterated that institutions managing public wealth must balance profitability with security.
Moving Forward: Detailed Review in Parliamentary Committees
Concluding his address, Finance Minister Wagle noted that while the primary legislation establishes broad boundaries, minute operational details and retail-level suggestions will be seamlessly integrated via upcoming regulations, bylaws, and guidelines.
The bill has officially been sent to the parliamentary committee for extensive clause-by-clause deliberations, where lawmakers, financial experts, and government bodies will refine the legal text to secure a stable and prosperous financial future for Nepalese contributors.
For more: Nepal’s Citizens Investment Trust Bill
