The House of Representatives (HoR) on Friday unanimously approved the Alternative Development Finance Mobilization Bill 2025, paving the way for the creation of a Rs 100 billion fund dedicated to targeted development projects.
The bill, which underwent 66 amendments from its earlier draft, was presented in the Lower House in April 2025 following deliberations at the Parliamentary Finance Committee.
Under the new law, the government will establish a fund with an authorized capital of Rs 100 billion and paid-up capital of Rs 25 billion. The mechanism is designed to mobilize alternative financial sources to back large-scale, high-return infrastructure projects.
According to officials, the initiative will help ensure proper utilization of both domestic and foreign investments, introduce effective financial instruments, and strengthen institutional structures, monitoring, and evaluation.
The fund is expected to support projects in electricity generation and distribution, road networks, railways, airports, tunnel highways, cable cars, podways, and industrial infrastructure such as special economic zones, industrial parks, dry ports, and information technology hubs.
