In 2063, the government issued the Competition Promotion and Market Protection Act to ensure fair competition among individuals or establishments producing or distributing goods or services. Its purpose was to develop the commercial capacity of the producer or distributor through fair competition, control monopolies and controlled business practices, and improve the quality of the goods and services produced.

It was also intended to prevent the possible unsanitary competition in business practices and maintain the economic interests and morals of the general public. After the law was made, the government also issued the Competition Promotion and Market Protection Regulations in 2066. But the situation of implementation is critical. The purpose for which the Act-Regulations were issued has not been implemented accordingly. 

An example of that is the Competition Promotion and Market Protection Board. Section 12 of Chapter 3 of the Act states that the Board will be constituted. The main objective of the board to be chaired by the Secretary of Industry, Commerce and Supply is to protect the market and promote fair competition in the market. But even after reaching the age of 18, the board has not been formed.

'Without formation of a board, there is a possibility of 'carteling' rather than promoting competition. But we can't do anything, we can't take action,' said Rajan Paudel, Director General of Commercial Supply and Consumer Protection Department. 

After the delay in the formation of the board, the department has also requested the Ministry of Industry, Commerce and Supply. A written suggestion was given two months ago, but it has not been implemented. "We sent a letter regarding the delay in the formation of the board but it has not been heard," he said. 

The board chaired by the Secretary of Industry, Commerce and Supply will consist of two members nominated by the government from the people working in the Ministry of Law, Justice and Parliamentary Affairs, the Ministry of Finance, the Ministry of Industry, Commerce and Supply, and organizations related to industry and commerce.

There will be 4 members nominated by the government and at least one of the people working in the organization related to consumer rights will be a woman and the director general of the commerce department will be the member secretary. It is mentioned in the Act that the term of office of the member to be nominated will be two years. But the board formation process is slow. 

President of National Consumer Forum Premlal Maharjan said that although the board was formed once around 2071, it was not implemented. The purpose of the Act was to make the market clean, to regulate and direct the unhealthy market. Acts and regulations also came accordingly. But nothing worked," he said. "It was formed once around 2071, then it didn't work at all."  He said that the market could not be improved because the government did not give priority to the

law. If the Act was fully implemented, the market would be organized and managed. When the market improves, it becomes difficult for people to eat from the market. That's why they didn't want to implement it," Maharjan said. The

board will formulate the policy to be adopted to maintain fair competition and submit it to the government of Nepal. It has the right to raise public awareness regarding the positive effects of fair competition on the economy and the negative effects of anti-fair competition activities.

The government has the right to make necessary suggestions regarding the economic situation, business situation, fair competition in the market and the work to be done to enhance consumer welfare, to identify the problems seen for the enhancement of fair competition in the market and to give suggestions to the relevant agencies to solve the problem. 

The importance of the Competition Promotion and Market Protection Act has increased after the government removed the profit and action provisions placed in the Black Market and Some Other Social Crimes and Punishment Act 2032. According to the Act, no businessman could take more than 20% profit in accordance with the customs of goods and business. Taking more profit automatically attracts the Black Market Act. And it is mentioned that the businessman can be jailed for 5 years or fined or both for black market. But this arrangement has been removed by the government through an ordinance to benefit businessmen.