Kathmandu: Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel has stressed the need for a new law to explore alternative financing sources, arguing that government spending alone cannot meet citizens’ aspirations for development and prosperity.

Bill Targets Non-Government Resources for Development
Speaking during clause-wise discussions on the Bill to Make Provisions Regarding Alternative Development Finance Mobilization, 2082 in the Finance Committee of the House of Representatives, Minister Poudel said the bill aims to advance infrastructure and development projects through funds mobilized outside the government treasury.

“This Alternative Development Finance Fund is designed to gather and manage resources beyond the government’s account. Once the law is passed, we will select profitable projects for construction and management,” Poudel stated. “We expect this fund to address resource shortages, contribute significantly to economic transformation, and ensure profit generation.”

Focus on Profitable and Priority Projects
The proposed law allows the fund to invest in agriculture, forest products, mining, and mineral-based industries. Major infrastructure sectors such as electricity generation, transmission, roads, railways, airports, tunnels, and industrial development facilities — including special economic zones, IT parks, and dry ports — are also on the list.

It further includes investments in urban infrastructure, cable cars, ropeways, and national priority projects under public-private partnerships. However, the bill bars investments in projects costing less than one billion rupees or those without immediate returns.

Restrictions to Avoid Misuse
The bill also prohibits funding projects lacking collateral, projects pledging bonds issued by the fund as guarantees, or those implemented by individuals. Furthermore, fund executives and related companies are restricted from investing in projects for at least three years after taking office to prevent conflicts of interest.

Capital Structure and Investment Sources
The proposed fund will have an authorized capital of NPR 1 trillion and a paid-up capital of NPR 25 billion, with the government holding a 51 percent stake worth NPR 12.75 billion.

Investors allowed include the Government of Nepal, international financial institutions, foreign banks, employee provident funds, citizen investment funds, social security funds, insurance companies, and — under new provisions — provincial and local governments.

Minister Poudel emphasized that this alternative financing approach is essential for implementing infrastructure projects critical to national prosperity, sustainable development, and productivity growth.