KATHMANDU: The Government of Nepal has registered a bill in the federal parliament to establish an Alternative Development Finance Mobilization Fund with an authorized capital of Rs 100 billion and a paid-up capital of Rs 25 billion, aimed at boosting investment in sustainable, high-yield infrastructure projects.
The Ministry of Finance submitted the Bill for Provisions on Alternative Development Finance Mobilization, 2025 last Friday, citing the urgent need for new financial instruments—such as bonds, equity funds, and both domestic and foreign investment—to bridge the growing gap between infrastructure investment needs and available resources.
According to the bill, Nepal requires over Rs 100 trillion in investment over the next decade, while current infrastructure investment hovers around only Rs 200–300 billion annually.
The fund will be established as an autonomous body, with the government initially holding a 51% stake (Rs 12.75 billion of the Rs 25 billion paid-up capital), with plans to gradually reduce this share as the fund becomes self-sufficient.
The fund aims to support projects with strong economic returns, employment generation potential, and national development importance. Eligible sectors include information technology parks, digital infrastructure, special tourism and sports infrastructure, urban development, cable cars, ropeways, and podways.
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