Preps for the Investment Summit: Govt to issue ordinance to amend nine laws

On Monday, the Cabinet meeting decided to submit an ordinance to President Ramchandra Paudel for approval, proposing amendments to nine acts and regulations to facilitate investment. The amendments aim to ensure the success of the upcoming Nepal Investment Summit 2024, scheduled for April 29-30 in Kathmandu. 

The laws to be amended include the Lands Act-1964, National Parks and Wildlife Protection Act-1973, Land Acquisition Act-1977, Electronic Transactions Act-2008, Special Economic Zone Act-2016, Public-Private Partnership and Investment Act-2019, Industrial Enterprise Act-2020, Foreign Investment and Technology Transfer Regulations-2021 and Forest Regulations-2023.

In addition to other decisions, Monday’s Cabinet meeting transferred Madhu Kumar Marasini to the position of Finance Secretary and reassigned the current Finance Secretary, Krishna Hari Pushkar, to the Office of the Prime Minister and Council of Ministers (OPMCM).

Officials at the Office of the Investment Board Nepal (OIBN) noted that the change in the ruling alliance has disrupted preparations for the summit. Although Finance Minister Barshaman Pun urged officials to expedite preparations, the process of amending laws had lagged, mainly due to the federal parliament’s focus on political issues. With the session of the lower house prorogued, the government decided to amend necessary laws through ordinance. 

Besides, the Ministry of Finance was occupied with drafting the principles and priorities for the fiscal year 2024-25 budget, along with a new five-year plan. This left the ministry with limited time to concentrate on the investment summit.

The government had established several committees to oversee summit preparations, each with specific responsibilities. The finance minister leads the Steering Committee, while the chief secretary heads the Implementation Committee. The industry secretary chairs the Technical Committee, and the CEO of OIBN leads the secretariat.

Initially, the Steering Committee had intended to amend 10 laws and two regulations to signal to investors that Nepal’s investment environment was improving. However, the sudden shift in power dynamics had slowed progress on the summit preparations.

A task force, chaired by the Secretary of the OPMCM, Ek Narayan Aryal, was established to propose amendments to laws and regulations related to foreign investment in Nepal. The task force had recommended changes to several acts and regulations, aiming to enhance the investment climate in the country.

The suggested amendments focused on key legislation, including the Industrial Enterprise Act-2020, Foreign Investment and Technology Transfer Act-2019, Special Economic Zone Act-2016, Forests Act-2019, and National Parks and Wildlife Protection Act-1973. These changes were intended to remove barriers to foreign investment and foster a more welcoming business environment.

Additionally, the task force proposed amendments to the Lands Act-1964, Land Acquisition Act-1977, Environment Protection Act-2019, Electronic Transactions Act-2008, Civil Aviation Act-1959, Foreign Investment and Technology Transfer Regulations-2021, and Forest Regulations-2023. These recommendations were part of a broader effort to streamline regulations and create a more favorable climate for investment in Nepal.