Nepal Government Invests Rs 11.5 Billion in Foreign Financial Institutions

The Government of Nepal has invested Rs 11.52 billion in shares of six international financial institutions, reflecting its growing engagement in the global financial ecosystem. According to the Public Debt Management Office under the Ministry of Finance, the investments have been made through formal agreements with multinational and regional financial institutions, including the World Bank, International Monetary Fund, Asian Development Bank, Asian Infrastructure Investment Bank, SAARC Development Fund, and the International Bank for Reconstruction and Development.

The investments, made up to Ashar 2080 BS, were carried out despite the absence of detailed legal provisions guiding such financial participation. Until recently, Nepal lacked a clear regulatory framework in its Law on Economic Procedures and Fiscal Responsibility to govern share or loan investments made by the government. In response to this gap, the Ministry of Finance has introduced the Share and Investment Policy 2081 to provide structure and transparency in how the government manages and expands its investment portfolio.

The new policy outlines the government’s strategy to invest in national priority enterprises, particularly those involving multinational partnerships within Nepal under public-private cooperation. It also covers investments in institutions established under bilateral or regional agreements and intergovernmental organizations of which Nepal is a member. The policy explicitly prohibits the government from investing directly in stock markets, both domestic and international, and from extending loans to individuals using funds sourced from foreign aid or grants unless stated in agreements with development partners.

Previously, shares and loans were held under the names of different ministries and departments, but the new policy centralizes all such holdings under the Ministry of Finance. Mukunda Prasad Pokharel, Deputy Secretary at the Public Debt Management Office, said the policy is currently in the implementation phase. He noted that detailed procedures and regulations are being drafted, after which the policy will be fully enforced. Pokharel also indicated that the government plans to expand its investment in foreign financial institutions and state-owned enterprises in line with the policy once the framework is fully operational.