The government has announced plans to establish an Alternative Development Finance Fund with an authorized capital of Rs 100 billion and an initial paid-up capital of Rs 25 billion. The fund aims to mobilize investment in the infrastructure sector and support the development of sustainable projects through improved resource management.
To facilitate the creation of the fund, a bill has been registered in the Parliamentary Secretariat. According to the proposal, the government will hold a 51 percent ownership stake in the fund.
The Ministry of Finance stated that a dedicated legal framework is essential to effectively utilize both domestic and foreign investments. The bill outlines the need for proper financial instruments, institutional structures, and mechanisms for monitoring and evaluation to ensure transparent and efficient fund management.
The proposed legislation emphasizes the importance of alternative development finance in addressing the country’s financial resource gap. It aims to support national priority projects that promote employment, drive sustainable economic development, and attract long-term investment.
Under the bill, the fund will be permitted to invest in various sectors, including technology parks, tourism, sports, urban and digital infrastructure, and cable car systems.
