Deputy Prime Minister and Finance Minister Bishnu Paudel said on Sunday, December 29, that the government is planning to introduce a bill aimed at creating a policy framework to explore alternative financial resources.
“Traditional sources like revenue, foreign aid, and loans are insufficient to meet the growing development aspirations,” Paudel said, underscoring the need for innovative and sustainable measures to secure long-term development financing.
He added that the draft has been prepared and will soon be tabled for legal proceeding.
The initiative will focus on infrastructure development, encourage domestic and foreign investments, and leverage innovative financial tools, according to Ministry Spokesperson Mahesh Bhattarai. “These tools include public-private partnerships, infrastructure bonds, and dedicated infrastructure funds, providing expanded opportunities for the private sector,” Bhattarai stated.
The alternative financing strategy will employ mechanisms such as venture capital, mutual funds, project-specific bonds, remittance funds and incubation funds. Funding will be sourced from multilateral and bilateral institutions, private sectors, institutional investors, the Nepali diaspora, green bonds, climate funds and government allocations.
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