The Nepal Chamber of Commerce has stated that the ordinance introduced by the government for improving the economic and business environment and enhancing investment is positive and of long-term significance.
The Chamber mentioned that the ordinance brought to amend laws for reforming public services, improving the business environment, and enhancing investment is a welcome move.
In a statement issued by the Chamber of Commerce, it was mentioned, “The ordinance aims to reform public services and improve the economic and business environment as well as enhance investment. We believe this will lead to improvements in the country’s economic environment and an increase in investment.”
The Chamber of Commerce has been drawing the government’s attention to the need for legal reforms to improve the economy and create an investment-friendly environment. The Chamber’s president, Kamlesh Kumar Agrawal, said that the government appears committed to improving the current state of the economy. The Chamber welcomed the provision in the ordinance allowing proposals from foreign investors to repatriate their investments to be approved within seven days, stating that this sends a message that there is a favorable investment environment in the country.
He added, “The Chamber had raised the issue of easy entry and easy exit for international investors during the investment summit, and this has been addressed.”
The Chamber also noted that the provision in the ordinance allowing the IT industry to open offices and invest abroad serves as a cornerstone for the development of the IT sector.
The Chamber mentioned that the amendments to 11 laws through the ordinance on improving the economic and business environment and enhancing investment, as well as the amendments to 13 laws through the ordinance on promoting good governance and public services, are significant for the sustainable development of the economy.
The provision to allow loans to be secured not only by land but also by fixed assets or contractual agreements is expected to help revitalize the economy and the financial sector, the Chamber stated. The Chamber’s president Agrawal mentioned that the provisions in the ordinance would ease the situation given the current context of excess liquidity in the banking and financial sector.
The Chamber highlighted the prioritization of industries within special economic zones (SEZ) as an important step. The amendment to the Special Economic Zone Act, 2073, which removes the mandatory requirement for SEZ industries to export 75% of their products, was seen as a positive development by the Chamber. The provisions in the ordinance to include the service sector within the SEZ framework aim to facilitate private sector participation in the SEZ, according to the Chamber.
The Chamber welcomed the provision of tax exemptions for industries currently in operation if they relocate to SEZs, expressing the expectation that this will ease everything from production to marketing. Similarly, the provision in the ordinance to grant up to 90% exemption on fines imposed on companies due to non-compliance with reporting requirements was also welcomed by the Chamber, noting that this would create a more favorable industrial environment.
Emphasizing that the ordinance is crucial to addressing the sluggishness in the economy, the Chamber called on the government to conclude the ordinance during the winter session of Parliament.
