KATHMANDU: The Ministry of Finance has invited suggestions from stakeholders and the general public on a draft bill to amend the Public Debt Management Act, 2022.
In a public notice, the ministry requested interested parties to submit their feedback within the stipulated deadline, stating that relevant suggestions would be incorporated before finalising the bill.
The proposed amendment aims to further clarify the role of the Public Debt Management Office, provide a legal basis for the government’s equity and loan investments, and allow the issuance of government securities in both domestic and international markets.
The draft also proposes provisions for issuing government securities in foreign currencies.
In addition, it includes measures to maintain digital records of government securities, issue thematic bonds, and introduce hedging mechanisms to reduce exchange rate and interest rate risks.
The amendment also seeks to clearly define the sectors and institutions in which the government can invest through equity or loans, as well as those where such investments will be prohibited.
Under the proposal, government investment would be allowed in wholly or majority government-owned public institutions, national priority projects implemented under public-private partnerships (PPP), and intergovernmental international organisations of which Nepal is a member.
However, the draft bars government investment in direct lending to individuals, the production and sale of alcohol and tobacco products, casinos and gambling businesses, and foreign employment agencies.
The proposed amendment also includes provisions to streamline government debt recovery procedures, impose penalties on individuals or institutions involved in collusion or submitting false information during bond auctions, and expand the use of electronic systems in government securities-related processes.
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