Govt Opens New Investment Doors for EPF, CIT & SSF; Billions Set to Flow into New Sectors

The Government of Nepal has officially expanded the investment options for three major state owned financial institutions through a new government order (ordinance). This change allows the Employees' Provident Fund (EPF), the Citizen Investment Trust (CIT), and the Social Security Fund (SSF) to invest their massive capital into more diverse financial areas.

Previously, these funds were largely restricted to investing in banks, insurance companies, and government bonds. Under the new rules, all three institutions are now permitted to invest in mutual funds, private equity funds, and venture capital funds. By making these legislative changes, the government aims to allow these funds to better manage the public's money and potentially earn higher returns by supporting a wider range of businesses and investment projects.

This move is seen as a significant step toward modernizing how public savings are used in Nepal. By allowing these large funds to enter the venture capital and private equity space, the government hopes to provide more funding for startups and private businesses, which can help stimulate the national economy. This update ensures that the billions of rupees held by these organizations are not just sitting in traditional bank accounts but are being used to support diverse sectors of the financial market.