Nepali Army Welfare Fund: Sustainability and Prospects for Diversification

Abstract

Military welfare is a complex yet multifaceted area of study. It encompasses various aspects: welfare, rehabilitation, health care, and social policies in diverse economic, social, and political contexts worldwide. It primarily aims at providing support to the army staff, their families or dependents, or ultimately the broader community. The Nepali Army Welfare Fund is a military institution in Nepal that was established in 1975 AD through fundraising contributions from the Nepali Army UN peacekeepers. This paper examines the historical, structural, and financial aspects of military welfare, with focus on the NAWF. Despite its robust organizational structure, it faces challenges related to socio‑economic changes, adaptation over time, and sustainability. A detailed document analysis of NAWF reports, audit statements, government policy, and media coverage on the fund’s activities reveals that the funds are mobilized in traditional revenue‑generating activities, more specifically in fixed deposits at financial institutions. Further, it indicates government reluctance to implement policies favorable to NAWF, which limits opportunities for investments from alternative channels. Comparisons with South Asian and global military welfare systems, domestic social welfare funds such as the Employee Provident Fund, Citizen Investment Trust, and Social Security Fund suggest that the NAWF requires a strategic reform agenda, including a roadmap aligned with prevailing laws and regulations, enabling investment diversification, the expansion of welfare services, and inter-agency collaboration to support national development goals.