22nd April 2025, Kathmandu
The Government of Nepal has invested NPR 11.52 billion in institutional shares of foreign and regional financial organizations. These investments were made over several years through agreements with multinational and intergovernmental institutions.
Nepal’s NPR 11.52 Billion Investment
Investments in Global Financial Bodies
Nepal’s investments include shares in the World Bank, International Monetary Fund (IMF), Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), SAARC Development Fund, and the International Bank for Reconstruction and Development (IBRD). These bodies have supported Nepal in development financing and policy support.
According to the Public Debt Management Office under the Ministry of Finance, these investments continued over time without a proper legal framework.
Lack of Legal and Policy Clarity
Until recently, Nepal lacked a strong policy to manage such investments. The Economic Procedures and Financial Accountability Act did not clearly define rules for government share or loan investments. It also missed clear principles and policy guidelines.
Each year, the government allocated funds for investments through the national budget. However, this system lacked consistency and strategic direction.
New Policy Brings Structure
To address the issue, the government introduced the Share and Investment Policy 2081. This policy brings clear guidelines for investing in foreign institutions. It aims to align such investments with Nepal’s national development goals.
The new policy defines where the government can invest. It allows investments in:
National priority enterprises in Nepal involve multinational firms under public-private partnerships.
Commercial entities formed under bilateral or regional agreements.
Intergovernmental institutions in which Nepal holds membership.
Clear Restrictions Set
The policy sets important restrictions. The government will not invest in individuals or the securities markets, whether domestic or foreign. It will also avoid using foreign loans or grants to invest in private companies unless specific agreements allow it.
The ownership of all these investments is now under the Ministry of Finance. Previously, various ministries and departments held them separately.
Ministry to Manage Future Investments
The policy allows the Ministry of Finance to increase Nepal’s share in existing institutions or invest in new ones. These decisions must follow the terms set in formal agreements.
Deputy Secretary Mukunda Prasad Pokhrel from the Public Debt Management Office confirmed that the policy is now in its implementation phase. “The policy has come. Now we are working on rules and procedures for full implementation,” he said.
Next Steps Ahead
The government plans to invest in more foreign banks and government institutions as per the new policy. With this, Nepal hopes to ensure better management and return on its international investments.
The new policy provides a foundation for transparency, accountability, and long-term planning in foreign institutional investments. It fills a long-standing gap in Nepal’s economic governance.
For more: Nepal’s NPR 11.52 Billion Investment