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Finance Minister Pun announces vows to amend laws to foster investment-friendly environment

Khabarhub

April 2, 2024

3 MIN READ

Finance Minister Pun announces vows to amend laws to foster investment-friendly environment

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KATHMANDU: Finance Minister Barshaman Pun has announced plans to amend various Acts that currently pose obstacles to creating an investment-friendly environment.

These amendments are slated to be implemented before the upcoming Nepal Investment Summit scheduled for April 28-29.

In a meeting with Teresa Daban, the Resident Representative of the International Monetary Fund (IMF) in Nepal, held at the Minister’s office today, it was disclosed that preparations are in the final stages for revising legal provisions deemed unfavorable for fostering investment. The Minister’s Secretariat confirmed this development.

The Federal Parliament has already endorsed a Bill to amend specific laws related to the prevention of money laundering and the promotion of the business environment.

Additionally, the government has presented a bill concerning banks and financial institutions in parliament.

Emphasizing Nepal’s readiness to transition from a least developed country to a middle-income developing country by 2026, the Minister informed the IMF representative about the nation’s policy to secure concessional loans from its development partners.

Addressing the economic impact of the COVID-19 pandemic and the Russia-Ukraine war, the Minister stated that Nepal’s economy is gradually recovering.

He highlighted the government’s implementation of a special action plan to curb revenue leakage.

The Minister also mentioned ongoing efforts to reform the tax system, with a committee report currently under review. He pledged to enhance tax policies based on the committee’s recommendations.

Regarding labor issues, the Minister noted that Nepal no longer faces trade union disputes as in the past, attributing this to the cessation of strikes and shutdowns on political grounds.

He emphasized Nepal’s attractiveness as a destination for foreign investment due to rapid economic growth in neighboring countries, despite expressing dissatisfaction with the current level of capital expenditure.

In response, the IMF resident representative commended Nepal’s positive economic indicators and assured high-level participation in the Nepal Investment Summit on behalf of the IMF.

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