In a pivotal move to enhance Nepal’s investment climate, the Federation of Nepalese Chamber of Commerce and Industry (FNCCI) has welcomed the government’s recent amendments to 12 laws and regulations through ordinances. These reforms come on the eve of the highly anticipated 3rd Nepal Investment Summit 2024, scheduled to take place on April 28-29 in Kathmandu.
With foreign direct investment (FDI) accounting for a mere 0.2 percent of the country’s gross domestic product, the FNCCI believes that the newly implemented legal changes, enacted at the Federation’s request, will create a more conducive environment for attracting investments.
Aiming to capitalize on the Investment Summit’s momentum, the government has amended key legislations, including the Foreign Investment and Technology Transfer Act 2075, the Industrial Enterprises Act 2076, the Forest Act, and the Land Act. These revisions address critical issues such as environmental impact assessments and land utilization limits, which have long been pain points for investors.
Notably, the FNCCI has expressed its delight over the inclusion of a start-up definition in the amended laws, a long-standing demand from the private sector. Previously, the lack of a clear definition hindered the facilitation of start-up enterprises, an issue that has now been rectified.
“While we initially sought the definition through regulations, it is positive that this time it is directly addressed by the law,” stated the FNCCI in a press release on Tuesday.
The legal amendments were made following the recommendations of the Policy Reform Task Force, chaired by the former Secretary of the Office of Prime Minister, Ek Narayan Aryal. The FNCCI has expressed confidence that the Parliament will approve the ordinance-passed legal provisions, ensuring effective implementation of the reformed laws.
Moreover, the Federation views these reforms as the starting point for a “second generation” of policy overhauls, aimed at further enhancing Nepal’s investment prospects.
As Nepal prepares to host the 3rd Nepal Investment Summit 2024, the government’s proactive measures to address long-standing regulatory hurdles and create a more favorable business environment have garnered praise from the private sector. The FNCCI’s endorsement of these legal reforms underscores the collective effort to position Nepal as an attractive destination for foreign direct investment.
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