Budget 2026/27: Govt plans sovereign wealth fund by utilizing foreign currency reserve

Kathmandu: The government has forwarded a plan to set up a sovereign wealth fund by utilising the foreign currency reserve.

Presenting the budget for the upcoming fiscal year, 2026/27, in the joint meeting of the federal parliament today, Finance Minister Dr Swarnim Wagle said that artificial intelligence (AI), clean energy, digital infrastructure, and financial sector reform were in the government’s priority.

A strategic plan is afoot to develop Nepal as a regional technical hub, he shared. The climate fund would be utilised to the extent possible, while a diaspora bond and clean energy bond shall be issued, he said, adding that the establishment of an AI factory was another scheme.

In order to curb exchange risk associated with foreign loans or investments, a hedging service would be launched next year, according to him. Utmost efforts would be made to lift Nepal out of the grey list; a favourable atmosphere would be created to improve the sovereign credit rating.

Moreover, the government is for increasing government funds in Rastriya Banijya Bank under the reform of corporations/authorities, while Nepal Airlines would be transformed into a company and run in a partnership model.

As per the budget speech, the government issued shares of Rastriya Jeevan Bima Company and Bishal Bazar Company to the general public. Keeping 66 percent of its shares for the government, the remaining shares would be sold to the general public by mid-January next year.

The amount generated from it would be spent to make Nepal a tech hub. Foreign investment would be open for the expansion of IT and a clear legal provision for remote work from Nepal to foreign companies.

IT software to be used in government services will be purchased from the same agency, according to Minister Wagle. The Finance Minister further announced that a fintech marketplace would be established under Nepal Rastra Bank’s supervision as part of digital public infrastructures. Dozens of government services would be linked to the Nagarik App.

The budget further mentioned the establishment of a sovereign AI compute centre for the first time in Nepal. With this, numerous AI industrialists and startups would be provided computing at subsided rate by purchasing thousands of AI processing units.

Dr Wagle also announced that at least 15 Nepali researchers working in internationally acclaimed AI companies would be provided fellowships in a bid to contribute to Nepal. AI-related education, including mathematics, is accorded utmost priority by the government, as the Minister shared through the budget speech.

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