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Started 5 days ago · Updated 5 days ago

House of Representatives Passes Alternative Development Finance Bill Amidst Opposition

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The House of Representatives has passed the Alternative Development Finance Mobilization Bill, 2026, establishing a legal framework for an Alternative Development Finance Fund with an authorized capital of Rs 100 billion. The bill was passed despite obstruction from opposition parties during the session.

• The Alternative Development Finance Fund will have an authorized capital of Rs 100 billion, comprising one billion ordinary shares with a face value of Rs 100 each.
• The government will hold a 51% stake in the Fund, with the Employees Provident Fund, Citizens Investment Trust, and Social Security Fund jointly holding 25%, and insurance companies holding the remaining 24%.
• The Fund is intended to invest in high-return infrastructure projects that promote employment and national economic development.
• It will be empowered to raise capital through debentures and bonds, establish subsidiary companies, act as a fund manager, and provide project development advisory services.
• The Fund can also issue instruments for foreign capital markets and obtain loans from international financial institutions, with provisions for hedging.