In a bid to mobilize capital and modernize state-owned enterprises (SOEs), Finance Minister Dr. Swarnim Wagle has announced a series of sweeping financial reforms in the budget statement for the fiscal year 2083/84. The plan introduces innovative debt instruments and outlines major structural changes for high-profile public entities.

1. New Tri-Bond Framework to Mobilize Capital

To tap into both domestic and international liquidity, the government will issue three distinct types of specialized bonds:

Offshore Bonds: To be issued in international markets, these bonds will curiously be denominated in Nepalese Rupees (NPR), aimed at hedging currency risk while attracting foreign institutional buyers.

Green Energy Bonds: Dedicated exclusively to funding hydropower projects and other renewable energy initiatives to support the country's clean energy transition.

Diaspora Bonds: Structured specifically to channel the savings of Nepalis living abroad directly into national infrastructure and development projects.

2. State-Owned Enterprises: Capital Injections and Public Divestments

The budget outlines critical restructuring and share offloading for several major public and semi-public corporations:

Rastriya Banijya Bank (RBB): The government will inject additional capital into the state-owned commercial bank to fortify its financial base and expand its lending capacity.

Vishal Bazaar & Rastriya Beema Sansthan: In a move to democratize ownership, shares of Vishal Bazaar Company Limited and Rastriya Beema Sansthan —previously tightly held—will be opened up to the general public via public issues.

Nepal Telecom (NTC) Divestment: The government will retain a majority 66% stake in Nepal Telecom, while the remaining government-held shares will be divested to the public by mid-January. The proceeds from this sale will be strictly ring-fenced to fund the construction of a state-of-the-art "Tech Hub."

3. Corporate Restructuring: Nepal Airlines and HIDCL

To improve efficiency and governance, two major state-linked entities are set for legal and structural transformations:

 Nepal Airlines Corporation (NAC) to Corporatize: Moving away from its traditional format as a state corporation, the national flag carrier will be converted into a public limited company. This transition is expected to pave the way for strategic partnerships and improved operational autonomy.

HIDCL Merger: The Hydropower Investment and Development Company (HIDCL) will be merged with other public entities sharing compatible objectives. Finance Minister Wagle stated that the post-merger entity will be repositioned as a highly specialized institution dedicated strictly to the broader infrastructure sector.