Government Seeks Suggestions from Private Sector for Legal Reforms

Kathmandu. The government has sought suggestions from the private sector for legal reform. The Office of the Prime Minister and Council of Ministers has requested the top 21 umbrella organizations of the private sector to send in points of law that need reform within 5 days. These include major private sector representative bodies such as the Federation of Nepalese Chambers of Commerce and Industry, the Confederation of Nepalese Industries, the Nepal Chamber of Commerce, the Federation of Small and Cottage Industries Nepal, the Federation of Woman Entrepreneurs' Associations of Nepal, the Nepal Bankers Association, the Independent Power Producers' Association, Nepal, the Federation of Contractors' Associations of Nepal, the Non-Resident Nepali Association, and the Hotel Association Nepal, among 21 organizations. The Prime Minister's Office has formally sought suggestions from the private sector to amend existing laws, regulations, and procedures that are causing obstacles and hindrances in the industry, commerce, and investment sectors. The office mentioned in the letter sent to the private sector that this step has been taken to accelerate the process of policy and legal reform based on discussions and consultations held earlier with various industry and commerce organizations and experts. Meanwhile, the private sector has stated that the suggestions sought by the Prime Minister's Office are positive. The President of the Nepal Chamber of Commerce, Kamlesh Kumar Agarwal, said that involving the private sector in policy formulation and legal amendment is very positive. He stated that the Chamber is preparing to provide opinions on removing obstacles and hindrances in the law. 'We have been repeatedly demanding that a regulatory impact assessment should be done before implementing any policy,' said President Agarwal. 'It is a very good aspect that the government is asking the private sector for suggestions after a draft of the law is made, regarding its impact.' He expressed confidence that this promptness shown by the government in correcting impractical aspects and assessing the impact before any act, law, or policy comes into implementation will help improve the investment environment in Nepal. Similarly, the President of the Independent Power Producers' Association, IPPAN, Mohan Dangi, said that it is good that the government has sought suggestions. However, he commented that if the government seeks suggestions but the knot is not untied in practice, it would be mere drama. He informed that IPPAN is preparing its suggestions and will prioritize legal hassles related to the Ministry of Forests. 'The Ministry of Forests is currently the biggest obstacle to infrastructure development, so our main focus will be on forests,' said President Dangi. 'Besides this, we are also preparing suggestions on power trading, transmission lines, and other issues of the private sector.' He praised the Prime Minister's Office for seeking suggestions by deeply identifying which section and subsection of which act, regulation, directive, or rule is causing obstacles in work. However, he also expressed dissatisfaction, stating that there is a lack of coordination between the government's policy and the behavior of other bodies. 'On one hand, the government talks about producing 10,000 megawatts of electricity. On the other hand, the Securities Board brings regulations that make it impossible to issue shares of hydropower. If nothing gets done and they just keep saying they will do it, then it's just drama,' said Dangi. He stated that IPPAN is preparing to provide suggestions in the format sought by the government, showing the problems. 'It has been six months since the government was formed. Action should be taken now. After giving suggestions, the difficult issues should be resolved. If the knots are not untied, there is no meaning in giving suggestions,' said Dangi. 'If the obstacles are removed, we will speak well of the government.' Three-Month Form Seeks Clear Suggestions The Prime Minister's Office has directed the concerned organizations to clearly state the legal provisions that cause obstacles or hindrances in their work areas. For this, the government has also sent a three-month form format. In it, the private sector needs to mention the section/subsection of the existing provision of the act, rule, or procedure of the law that is causing problems in expanding investment. It has also sought suggestions with clear details of what needs to be removed, added, or replaced in the proposed amendment, and the reason and justification for the proposed amendment. In the first phase, five main proposals of institutional priority have been requested. Private Sector Preparing to Collect Suggestions Upon receiving the government's letter, private sector organizations have stated that they have intensified internal discussions. The Director General of the Confederation of Nepalese Industries, Dr. Ghanashyam Ojha, said that preparations are underway to submit suggestions based on the three-month form within the stipulated date as per the correspondence from the Prime Minister's Office. He informed that the Confederation is preparing to send suggestions based on discussions with industrialists and businessmen. Similarly, the Director General of the Federation of Nepalese Chambers of Commerce and Industry, Dr. Gopal Tiwari, also confirmed receiving the government's letter. He said that suggestions are being collected as per the demand in the Prime Minister's Office's letter. He informed that preparations are being made to submit suggestions with revisions after identifying the legal provisions that are causing difficulties in industry and business. Tiwari said, 'We are preparing to give suggestions by holding discussions with representatives from all sectors in the Federation. We will discuss and submit suggestions to the government within the remaining time.' Effort to Boost Morale Through Policy Reform The morale of investors has weakened due to the sluggish economy in the past, various crackdowns on the private sector, and unstable policies. Industrialists and businessmen have long been demanding the amendment of old and impractical laws to create an investment-friendly environment during meetings with the Prime Minister. In recent times, the Prime Minister himself has been prioritizing dialogue with the private sector. After regular dialogue and coordination with industrialists and businessmen, the government has made efforts to remove policy obstacles. The private sector expects that the government's move will help restore the lost confidence of the private sector and create an investment-friendly environment in the country.

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