Government to establish sovereign wealth fund by leveraging robust foreign exchange reserves

Kathmandu: The Government of Nepal has announced plans to mobilize a portion of the nation’s foreign exchange reserves to establish a Sovereign Wealth Fund. This initiative is designed to strategically manage and invest surplus national assets to ensure long-term economic stability and fund critical development projects.

This move comes at a time when the country is maintaining a comfortable and healthy level of foreign currency holdings, providing the government with the necessary fiscal confidence to repurpose these reserves for productive investment. By utilizing a percentage of the treasury in this manner, the administration aims to generate better returns on its idle assets while strengthening the national economy.

Finance Minister Dr Swarnim Waglé revealed this policy shift during the presentation of the federal budget for the upcoming fiscal year 2083/84 before a joint session of the Federal Parliament. He emphasized that the creation of the fund is a timely step made possible by the current stability of Nepal’s external sector, marking a significant evolution in the country’s financial management strategy.