Finance Minister Khanal Urges Investment of Idle Capital into Productive Sectors

Kathmandu — Finance Minister Rameshwar Prasad Khanal has emphasized the need to channel available liquidity into productive sectors to build national capital. Speaking at the 36th anniversary of the Citizen Investment Trust (CIT), he highlighted that with declining interest rates and ample liquidity in the banking system, investment should be directed toward productive areas.Minister Khanal urged the advancement of large infrastructure and long-term investment projects, citing the Budhi Gandaki Hydropower Project as an example where public–private partnership (PPP) models can help boost investment. He stressed that idle capital should be mobilized into productive sectors and noted that conflicts in the Middle East could affect Nepal’s supply chain and lead to price hikes, requiring close attention.He also called for the prompt enactment of laws for alternative finance operations, reconsideration of taxes on various pension funds, and lower taxes on similar income and social security contributions.CIT Chairman Tulsi Prasad Ghimire emphasized the trust’s vital role in promoting high and sustainable economic development. Executive Director Parbat Kumar Karki stressed the need for investment diversification, explaining that currently around half of the fund’s capital is in term deposits with banks and financial institutions, about 22% in loans and debt instruments, and the rest in equity investments. He warned that falling interest rates could impact the fund’s profitability.Regarding Nepal Airlines Corporation, where about NPR 2.2 billion has been invested, Minister Khanal noted difficulties in recovery but stated that measures are underway under the government’s guarantee. Santosh Koirala, President of the Nepal Bankers’ Association, also emphasized the need for diversification to ensure long-term and secure returns.The event highlighted the trust’s initiatives to expand its branch network across provinces, leverage digital technology, strengthen internal governance, and enhance transparency in its accounting systems to ensure sustainable returns.