Acts creating hurdles for investment will be amended: Finance Minister

KATHMANDU: Finance Minister Barshaman Pun has said various Acts creating obstacles for enabling an investment-friendly environment will be amended. Such amendments will take place before the Nepal Investment Summit scheduled for coming April 28-29.

During his meeting with International Monetary Fund (IMF) Resident Representative to Nepal, Teresa Daban, at the former’s office today, the Minister said the preparations are in the final phase for revising legal provisions considered unfavorable to promote the investment atmosphere, according to the Minister’s Secretariat.

Both houses of the Federal Parliament have already endorsed the Bill to amend certain laws related to the prevention of money laundering and promotion of the business environment and the government has already presented a bill related to banks and financial institutions in the parliament.

Highlighting Nepal’s preparations for graduating to a middle-income developing country from the category of the least developed country by 2026, the Minister shared with the IMF representative that Nepal pursued a policy of acquiring a concessional loan from its development partners.

The Minister apprised the IMF representative that Nepal’s economy slowed down by the COVID-19 pandemic and the Russia-Ukraine war is gradually improving. The Government of Nepal has implemented a special action plan to control the revenue leakage, according to him.

A committee report about the tax system reform is being studied, according him, pledging to enhance the tax policies on the basis of the committee’s recommendations.

“Nepal faces no trade union issues as in the past, the culture of strike and shutdown on the political ground has been ended, he said, claiming that a rapid economic growth in the close neighbouring countries features Nepal as a suitable destination for foreign investment. However, the situation of capital expenditure is not satisfactory,” he said. As he assured, the expenditure capacity of government agencies will be enhanced.

In response, the IMF resident represent said Nepal’s latest economic indicators are good. She also pledged a high-level participation in the Nepal Investment Summit on behalf of the IMF.