No progress in legal reforms front, say officials
KATHMANDU, Nov 5:
The government´s plan to revise existing laws and bring new laws to create investment friendly environment in the country and to encourage private sector has yet to take off.
The plans were announced through the budget for fiscal year 2014/15 which was unveiled in mid-July.
Officials of the finance ministry, who took stock of the progress in law reforms front on Monday, found negligible progress in the process. All the joint secretaries of the legal division of different ministries, who were invited on Monday, reported that they won´t be able to table any law in the parliament until mid-January next year.
Krishna Prasad Devkota, spokesperson of the finance ministry, said the plan to reform laws were included in the budget as per the request of different ministries. "But have not seen substantial progress in law reforms so far," he said, adding that the finance ministry has started monitoring process to expedite the process of drafting new laws and amending existing laws.
But officials, who participated in the meeting, said it would be difficult to draft new laws and make amendments to existing laws as announced in the budget program.
It has already been three and half months that the budget for fiscal year 2014/15 was introduced. But not a single such bill has been tabled in the parliament.
Finance ministry officials say outdated laws are one of the major impediments to economic growth. It is because of this fact that the government announced to revise such laws and draft new laws if needed.
Finance Minister Ram Sharan Mahat has been saying that he would introduce second tier of reforms to revitalize the country´s economy. But officials say his plan will remain only in paper if immediate steps are not taken in time.
Banks and Financial Institutions Bill, Deposit and Credit Security Bill, Commodities Bill, Foreign Exchange Regulation Act, Act to Restrict Investment Abroad, Electricity Act, Special Economic Zone Act, and Industrial Enterprises Act are some of the new laws that the country´s economic sector have been waiting. Likewise, the Nepal Rastra Bank Act, Insurance Act, and Public Procurement Act are in need of amendments.
At a time when ministries have been failing to prepare draft of necessary laws, Chiranjivi Nepal, economic advisor to the Prime Minister, said parliamentarians are not serious toward the need to bring economic reforms.
The government had announced to prepare/amend altogether 30 laws. But three laws -- University (Umbrella) Bill, Forest Product Authority Bill and a bill for unifying all state-run media houses -- have been dropped, according to officials who were present in Monday´s meeting.
"New laws are crucial for the economic sector. But they should not affect constitution-writing," Pashupati Murarka, senior vice-president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
Minister Ram Sharan Mahat had floated the idea of ´second tier economic reform´ after his party came to power in February last year. Following the political change of 1990s, Nepali Congress had started reforms after the country adopted liberal market economy.
Source: Republica
