Finance Minister Swarnim Wagle on Friday announced that the government would mobilise a portion of the country’s foreign exchange reserves through a sovereign wealth fund under the budget for fiscal year 2026-27.

Presenting the budget at a joint session of Parliament, Wagle said the government would adopt a policy to channel part of the reserves through the proposed sovereign wealth fund when the foreign exchange reserve position remains comfortable.

Nepal’s total foreign exchange reserves currently stand at Rs3.49 trillion.

The government also announced plans to strengthen Nepal Drugs Limited to improve healthcare services.

Wagle said the government would establish an asset management company by mid-January, 2027.

In the energy sector, the finance minister announced that power purchase agreements for projects with capacities below 10 megawatts would be signed immediately.

The government also said it would retain a 66 percent stake in Nepal Telecom while distributing the remaining shares to the public.

Wagle further said forests would be developed as a basis for import substitution and procedural hurdles in the sector would be removed.