Government proposes infrastructure development fund of Rs 100 billion

The government has put forward a proposal to set up an Infrastructure Development Fund with an authorized capital of Rs 100 billion to mobilize investment for infrastructure construction.

The Ministry of Infrastructure Development has prepared a draft of the Infrastructure Development Fund (Amendment and Consolidation) Bill, 2083, for this purpose.

According to the draft, the fund's issued capital will be Rs 50 billion and paid-up capital Rs 20 billion, for which 1 billion units of ordinary shares will be allocated.

In terms of share ownership, the federal government is proposed to hold 40 percent, provincial governments 5 percent, and metropolitan, sub-metropolitan and municipal bodies 15 percent, while rural municipalities would hold 10 percent.

Government corporations, funds, institutions, banks and international financial institutions will take 15 percent of the shares, while private sector banks and financial institutions will take another 15 percent.

The fund's goals include revising infrastructure-related laws in line with the federal system of governance and mobilizing alternative sources of finance. It also aims to increase long-term investment in urban infrastructure.

The government expects the arrangement to reduce dependence on the government budget for large infrastructure projects. The proposal is still at the draft stage.