The government has forwarded a plan to set up a sovereign wealth fund by utilizing foreign currency reserves.
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 infrastructures and financial sector reform were in government priority. A strategic plan is afoot to develop Nepal as a regional technical hub, he shared.
The climate fund would be utilized to the extent possible while diaspora bond and clean energy bond shall be issued, he said, adding that establishment of an AI factory was another scheme.
In order to curb exchange risk associated with foreign loan or investment, 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 favorable atmosphere would be created to improve credit sovereign credit rating.
Moreover, the government is for increasing government funds in Rastriya Banijya Bank under the reform of corporation/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 share to the government, remaining shares would be sold to the general public within mid-January next year. The amount generated from it would be spent to make Nepal a tech hub.
Foreign investment would be open for expansion of IT and a clear legal provision for remote work- from Nepal to the 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 Nagarik App.
The budget further mentioned the establishment of a sovereign AI compute center for the first time in Nepal. With this numerous AI industrialists and startups would be provided computing at a subsidized 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 budget speech.
