Budget proposes sovereign wealth fund, Nepal Telecom divestment and energy sector reforms
Summary
Finance Minister Swarnim Wagle announced the establishment of a sovereign wealth fund, Nepal Telecom divestment while retaining majority public stake, energy sector reforms, and healthcare improvements in the fiscal year 2026-27 budget.
Key Points
- The government will mobilise part of foreign exchange reserves through a sovereign wealth fund if reserves remain comfortable.
- Nepal Telecom will retain a 66% government stake with remaining shares distributed to the public.
- Power purchase agreements for energy projects below 10 MW capacity will be signed immediately.
- An asset management company will be established by mid-January 2027 to manage assets.
