Government Amends Nine Laws to Boost Investment Climate Ahead of Nepal Investment Summit-2024

In a bid to attract both domestic and foreign investors, the Nepalese government has taken a significant step by amending nine laws through an ordinance. These amendments, announced on the eve of the Nepal Investment Summit-2024, aim to address longstanding grievances from the private sector regarding existing laws that hinder the creation of an investment-friendly environment in the country.

The forthcoming Nepal Investment Summit-2024, scheduled for April 28 and 29, underscores the government's recognition of the need for increased investment to fuel the nation's development and prosperity. The ordinance, which was approved during a Council of Ministers meeting, is set to be enacted pending approval from the President.

Finance Minister Barsaman Pun emphasized that these amendments are designed to instill confidence among investors. "Responding to recommendations from the private sector, we have amended laws through an ordinance to facilitate investment," stated Minister Pun, highlighting the positive message these changes send ahead of the upcoming investment summit.

Among the key amendments introduced through the ordinance are revisions to the Lands Act, National Parks and Wildlife Conservation Act, Land Acquisition Act, Electronic Transactions Act, Special Financial Act, Public Private Partnership and Investment Act, Foreign Investment and Technology Transfer Act, Forest Act, and Industrial Enterprises Act. These amendments address various aspects of investment facilitation, including easing project execution in forest areas, streamlining foreign exchange payments, enabling the transfer of machinery to Special Economic Zones, simplifying mining procedures in national forests, and supporting the registration and operation of startup enterprises.

While the private sector had advocated for amendments to approximately two dozen laws to foster an investment-friendly environment, the government's focus has been on specific legislative changes. Rajesh Kumar Agrawal, President of the Confederation of Nepalese Industries (CNI), stressed the need for broader reforms, including the amendment of more laws, the retraction of certain regulations, and the introduction of new legislation.

The amendments are expected to eliminate legal and policy obstacles in industry, business, and investment, thereby facilitating the smoother implementation of construction projects and the establishment of industries. The Investment Board Nepal (IBN) has prepared to showcase around 150 projects at the upcoming investment summit, spanning sectors such as energy, infrastructure, tourism, IT, agriculture, and others. With registrations from 300 foreign investors representing about 50 countries, the event anticipates participation from diverse global stakeholders, aiming to catalyze investment opportunities and spur economic growth in Nepal.