FinMin Mahat tells dept chiefs to rush reform preparations
KATHMANDU, SEP 02 -
Finance Minister Ram Sharan Mahat on Monday directed department chiefs at the Finance Ministry to complete preparations for the introduction of all the laws and regulations related to the new economic reforms by mid-January so that they can be submitted to the Cabinet, said the ministry.
The minister, who has declared that he will be implementing second generation reforms, unveiled a number of reform measures with the budget presentation for the current fiscal year.
The department chiefs have been told to prepare drafts and complete discussions on the bills by mid-January. After the Cabinet gives its approval, the bills will be sent to Parliament for its endorsement. The budget speech stated that a total of 18 new acts and regulation would be introduced while 16 others would be amended. Some of the crucial new acts to be introduced are Act on Contract Farming, Industrial Enterprise Act, Foreign Investment and Technology Transfer Act, Act on Bringing Uniformity in Real Estate Valuation, Warehouse Act and Electricity Regulation Commission Act.
Likewise, Nepal Rastra Bank Act, Bank and Financial Institution Act, Banking Offence Act, Insurance Act and Act Prohibiting Investment Abroad are among those that will be amended.
“The finance minister has strongly directed us that the bills and amendments to the existing laws regarding economic reforms must be ready as soon as possible to present them to Parliament,” said Ram Sharan Pudasaini, spokesperson of the Finance Ministry.
Meanwhile, given the government’s failure to spend the budget fully and on time, Mahat has directed them to finalize the budget implementation action plan which the Finance Ministry is preparing. “We are going to discuss with other line ministries to finalise the action plan which is currently in the final phase of preparation,” said Pudasaini. “There will be time bound action plans for each activity under the different ministries.”
Since the budget has announced setting up a start-up fund with an initial investment by the government of Rs 500 million, the finance minister directed ministry officials to work to bring donors’ resources in the fund. “A few donors have shown interest in contributing to the proposed fund which can be utilized,” said Pudasaini.
The budget announced the start-up fund to help small and medium level entrepreneurs facing a resource crunch with capital to start their innovative enterprises. “This may help develop entrepreneurship,” said Minister Mahat.
During the interaction, the finance minister also directed ministry officials to implement the government’s long announced policy of allowing non-resident Nepalis (NRNs) to purchase apartments in Nepal.
Although the budget for fiscal 2011-12 had provisioned allowing NRNs and foreigners to purchase houses and apartments in a bid to stimulate the real estate sector which was going through a recession then, there has been no progress on this front.
The NRN Act states that NRNs can buy up to 2 ropanis of land, but it does not say anything about apartments. According to Pudasaini, the Economic Policy Analysis Division of the ministry has been told to take stock of the progress made so far on the matter and coordinate to ensure that the policy is implemented.
Earlier, the Home Ministry had expressed concern at allowing foreigners to purchase property here stating that it could invite security as well as demographic problems in the future.
The finance minister also directed his staff to prepare a concept paper on the modality of managing public enterprises facing financial losses and whether they should be shut them, lease out or privatized.
Discussions were also held on forming Tax Review Com-mission, restructuring the Youth Self-Employment Fund.
Source: The Kathmandu Post
