Government's share investment in foreign banks is 11.52 billion

Baishak 2, 2082

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Government's share investment in foreign banks is 11.52 billion

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The government has invested 11.52 billion institutional shares in foreign institutions. According to the Office of Public Debt Management under the Ministry of Finance, the government has been investing shares in multinational and regional financial institutions through agreements with such institutions since their establishment.

The government has invested in World Bank, International Monetary Fund, Asian Development Bank, Asian Infrastructure Investment Bank, SAARC Development Fund and International Bank for Reconstruction and Development. In those organizations  Until June 2080, the government's share investment is worth 11 billion 52 million rupees.

Although the government invested in such entities, there was no adequate legal system. There does not seem to be a clear and detailed arrangement regarding the share or loan investment made by the government in the law on economic procedures and financial responsibility, and there is no clear policy arrangement regarding the principles and basis of investment.

The share or loan investment from the internal sources of the government is based on the allocated amount of share or loan investment in the Appropriation Act. The government has issued Share and Investment Policy 2081 to manage such investments through the budget.  

The policy also mentions the government's investment abroad. In order to achieve the national goal of economic and social development, a policy has been taken to invest shares and loans in the following sectors and agencies. According to the said policy, the government will invest shares in national priority enterprises that a multinational company wants to invest in under the concept of public-private partnership within Nepal,  If there is an organized body established to do any commercial work under a bilateral or regional agreement, it is mentioned to invest in it, and to invest shares in intergovernmental multinational bodies of which Nepal is a member. 

The government has adopted a policy of not directly investing loans from multinational organizations to individuals. Similarly, it is mentioned in the share and investment policy issued by the government that the government will not invest in the investment instruments of the domestic or foreign securities market. 

The ownership of shares and loan investments from the Government of Nepal has been maintained in the name of the Government of Nepal, the Ministry of Finance. Previously, the ownership of shares and loans, which were maintained in the name of various ministries, departments and offices, has been maintained in the name of the Ministry of Finance. Shares and loans will not be invested in any commercial entity or company from the source of foreign loans or grant aid except in accordance with the agreement with the

development partner . The Ministry of Finance will be able to invest more shares in intergovernmental multinational bodies of which Nepal is a member, similarly, the policy of investing shares in newly established intergovernmental multinational bodies in accordance with the provisions of the agreement, when a commercial body is established under a bilateral or regional agreement or in accordance with the provisions of the agreement, the policy is being implemented.  

According to Deputy Secretary of Public Debt Management Office Mukunda Prasad Pokharel, this policy is in the implementation phase. He said that since there was no policy of this kind before, a policy has been introduced to manage the government's investment and this policy will be fully implemented after the procedures and regulations are made.

He said, "The policy has arrived, regulations and procedures are needed to implement them, and since these are in the process of being made, the policy is in the process of being implemented." According to the share and loan investment policy, the government will invest in foreign banks as well as government institutions in the future.

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