Government Moves to Revamp Decades-Old Laws to Unlock Investment Climate

The government has initiated preparations to amend dozens of laws related to the economic sector in a bid to improve the investment climate in the country. The move comes amid persistent complaints from the private sector that laws dating back to the Panchayat era have hindered the creation of a conducive investment environment.

The government is now preparing to present dozens of economic bills in the upcoming session of parliament. Key legislations set for introduction include the Bill to Amend Public Procurement Act, Bill to Amend Nepal Rastra Bank Act, Bill to Amend Employees' Provident Fund Act, Bill to Amend Companies Act Amendment Bill, Water Resources Act, Renewable Energy Bill, Electricity Bill, Civil Aviation Authority Bill, Nepal Air Service Authority Bill, and several immigration-related bills.

Under its governance reform plan, the government has proposed integrating processes related to business registration, tax registration, bank accounts, and other necessary permits, aiming to deliver services through a single-window system within 45 days. The broader package of economic bills also includes the Information Technology and Electronic Governance Bill, the Bill to amend the Asset (Seizure, Control and Forfeiture) Act, and the Bill to amend the Mines and Minerals Act.

The government has planned to immediately initiate legal, technical, and procedural improvements to make all service delivery processes digital, transparent, and trackable. The Ministry of Industry is working on amending the Companies Act. Meanwhile, the Ministry of Home Affairs is preparing to simplify and streamline the process for managing criminal assets, which has faced legal complications even after court rulings. The ministry has accelerated work to amend regulations related to the seizure, control, and forfeiture of criminal assets within two months.

Similarly, the Ministry of Industry is amending the Mines and Minerals Act, 2042 BS, to revoke inactive mining licenses and strictly regulate active firms. A senior official at the ministry said plans have been made to begin installing modern equipment in laboratories under the Department of Mines within three months to enhance testing capacity. The Ministry of Urban Development has also accelerated work on an Urban Development Bill and a Waste Management Bill, with preparations to present them in the federal parliament. "Work is underway to present them to the Council of Ministers for approval within two months," a ministry official said.

The government has also initiated the drafting of necessary laws to centralize Corporate Social Responsibility (CSR) funds from industrial establishments and channel them through a government-designated fund into priority sectors. Plans have also been put forward to create an integrated structure to end overlapping responsibilities among bodies related to investment promotion, export expansion, and industrial development. A task force has been formed to prepare a blueprint for a single-point service system. To reduce project implementation delays, the government is preparing to introduce an umbrella law on project facilitation within 60 days. There are also plans to make legal provisions for direct implementation of projects with repeatedly failed bidding processes through a government infrastructure construction company.

The Ministry of Physical Infrastructure has begun preparations to manage resources, means, manpower, and equipment for this purpose. Finance Minister Dr. Swarnim Wagle said the government is moving ahead with service delivery and economic reform as priorities.

"Fifteen old laws are already in the process of being repealed," he said during a meeting of the Intergovernmental Council on Thursday. "We will amend or repeal dozens of other laws as well."