KATHMANDU: The government is all set to form a specialized regulatory body for regulation and monitoring of the non-banking financial institutions including the Employees Provident Fund Nepal, Citizen’s Investment Trust (CIT) and Social Security Fund (SSF).

A meeting of the Council of Ministers held on January 12 approved the five-year strategy (fiscal year 2082/83 BS to 2086/87 BS) for the formation of an institutional mechanism.

The strategy aims at contributing to economic development by ensuring an efficient, robust and inclusive fiscal system in the country.

These three institutions have collected billions of rupees from the employees in government, private and informal sectors and the fund from these institutions is being mobilized for long-term infrastructure development, capital market, government bond and other investment instruments. However, these organizations are out of a clear and integrated regulatory mechanism.

The strategy paper has prioritized expansion of scope of the social security schemes and more and more employees from different sectors including the unorganized sector’s workers, foreign migrant workers and others would be brought on board.