Govt reforms policies to attract investment
KATHMANDU, May 19:
The government has reformed registration procedures for the approval of licensing and approval of Foreign Direct Investment (FDI) eliminating seven steps in the FDI approval process to create an investment-friendly climate.
“The Licensing Reform Task Force has completed the two reforms,” said joint secretary of the Economic and Infrastructure Development Division of the Office of Prime Minister and Council of Ministers Mahendra Man Gurung while addressing the opening session of ‘Doing Business Workshop’ organised to discuss on how investment climate could be improved by reforming the laws to ease doing business.
“Some of the work procedures are also being prepared to simplify herb exports,” he said, adding that the government is also launching a licensing electronic portal by the end of this month. “It will be a one-stop-shop for all
the licences, permits, related laws and regulations and necessary documents.”
The portal, currently, serves as an information hub for business people, and the government plans to make it interactive in the future.
At a time when regular bandhs have been hurting the business confidence of the private sector, the government has claimed that it is serious about improving the investment climate in close cooperation with the private sector.
The government is also serious in improving the country’s ranking in the Doing Business report –– the World Bank publication, he added.
The government would like to see how it can improve the country’s ranking in the Doing Business report, said Gurung, adding that Nepal can create an investment friendly climate for both domestic and foreign investors by improving its ranking in the report. “Without the private sector’s involvement, rapid economic growth — that creates jobs and economic opportunities — cannot take place,” he added.
Likewise, Inland Revenue Department under Ministry of Finance and Office of the Company Registrar under Ministry of Industry, have signed a memorandum of understanding to share data and provide permanent account number (PAN) during a company’s registration reducing a lot of paperwork and hassles for businesses and industries.
The process is in the final stages, according to Company Registrar Keshav Thapa. “It will reduce the number of procedures to start a business, which currently comprises of seven procedures.”Joint secretary at the Ministry of Commerce and Supplies Naindra Prasad Upadhyaya and director at the Department of Customs under the Ministry of Finance Shyam Dahal presented reform initiatives proposed in trade facilitation, where Nepal ranked 162nd in Doing Business 2012.
The changes include harmonisation of customs working hours with India, streamlining and consolidation of trade-related documents — for exports and imports — and preparation of an inventory of trade related fees and charges, and automation.
Ministry of Commerce and Supplies and Ministry of Finance are also working on to reduce the number of unnecessary documents required during exports and introducing Any Branch Banking System to ease burden on businesses to deposit revenue at any branch of the banks. It has also requested to map and develop action plans for the coming year to reform in their areas to create a favourable business environment.
Chairperson of the Industry Committee of the Federation of Nepalese Chambers of Commerce and Industry Dinesh Shrestha, on the occasion, said that the private sector has taken the government’s reform measures positively.
“The private sector feels encouraged that government is giving high importance to economic issues,” he said, adding that political change should be for economic progress.
The ‘Doing Business Workshop’ — organised jointly by Office of the Prime Minister and Council of Ministers, Ministry of Industry and Nepal Business Forum (NBF) secretariat — also reviewed progress on reforms aiming at improving Nepal’s performance against World Bank’s Doing Business indicators, published annually by World Bank Group.
The annual Doing Business report ranks countries in terms of ease of doing business.
Nepal has been ranked 107th on ease of doing business out of 183 economies in Doing Business 2012.
Improvement in the ranking due to reforms will help attract FDI because prospective investors decide on the basis of a country’s ranking in the Doing Business report.
The workshop also discussed on how to support the Investment Year 2012-13 by reviewing reforms in four major areas like Starting a Business, Dealing with Construction Permits, Paying Taxes and Trading across Borders.
International Finance Corporation representative Shyamal Shrestha, on the occasion, made a presentation on Doing Business 2012 and strategy for successful reforms while joint secretary at the Ministry of Industry Anil Kumar Thakur lauded NBF’s initiative for undertaking reforms. “Nepal is in a transition phase and the government has not been able to carry out reforms as anticipated but the scenario is encouraging,” he added.
Source: THT
