Idle Funds in Citizen Investment Trust Raise Risk of Income Decline

Kathmandu – Parbat Bahadur Karki, Executive Director of the Citizen Investment Trust, has warned that the institution’s large funds being tied up in fixed deposits could significantly reduce its income. Speaking at the 36th anniversary of the trust, he said that with declining demand for deposits from banks and financial institutions and lower interest rates, a large portion of the fund remains idle.Karki highlighted challenges in investment diversification and a decrease in loan demand. He also pointed out overlaps between the Social Security Fund and the Citizen Investment Trust, noting that participating organizations were being asked to join the Social Security Fund, with potential penalties if they did not comply. He emphasized the need for clearer policies and stronger implementation going forward.