The government has brought an ordinance to amend 26 laws to improve public services and improve the economic and business environment and investment. President Ramchandra Poudel issued four ordinances to amend two dozen laws recommended by the Council of Ministers last Friday. The government claims that the ordinance will improve public services and increase investment.

According to the Office of the Prime Minister and Council of Ministers, 11 laws have been amended from the Ordinance on Improvement of Economic and Business Environment and Investment Enhancement and 13 from the Ordinance on Promotion of Good Governance and Public Service. Similarly, an ordinance has been issued amending the Economic Procedures and Financial Responsibility Act, 2076 and the Privatization Act, 2050. 

The Good Governance Promotion and Public Service Ordinance has changed the legal system related to the case. It is a legal right to appeal to a higher court against the decision of the trial court in any case. However, according to the verdict, the existing provision of staying in jail while exercising this right without paying a fine could not be implemented. The Ordinance has changed it and provided that only 15 percent of the bail can be appealed without going to jail. Many who are unable to pay the money have been appealing the verdict in lieu of jail and bail. Now, the convicts of cases sentenced to imprisonment of less than 10 years by the trial court can appeal by paying an additional 15 percent of the bail set for pre-trial by sitting outside the jail. The government has simplified the performance through an ordinance and has introduced a provision that the responsible officer of any agency must take a decision and provide service within 7 days. However, this provision will not apply in cases where the decision-making period is specified in the law itself. 

Similarly, the ordinance has also made some amendments in the local government operating procedures. According to which, if both the president, vice president or chief and deputy chief are suspended at the local level or if both positions are vacant for some reason, the members of the executive can choose an acting chairman, vice president or chief or deputy chief from among themselves. Even if the post of ward president is vacant, the ward members can choose a caretaker from among themselves. 

The Ordinance on Improving the Economic and Business Environment and Enhancing Investment has made dozens of arrangements for investment reform. The information technology (IT) industry has been opened and allowed to invest abroad. There is a provision in the ordinance to attract foreign investors, from being able to take loans by mortgaging fixed assets and contracts other than land, if they want to return from Nepal, the process will be completed quickly and easily. 

Black Market and Certain Other Social Offenses and Punishment Act, 2032, Foreign Exchange (Regulation) Act, 2019, Foreign Investment and Technology Transfer Act, 2075, Companies Act, 2063, Public-Private Partnership and Investment Act, 2075, Special Economic Sector Act, 2073, Industrial Business Act, 2076, Banks and Financial Institutions Act, 2073, Arbitration Act, 2055, Revenue Leakage Investigation and Control Act, 2052 and Revenue Tribunal Act, 2031 were also amended. is

Foreign investors have been insisting that the legal system for their exit should be easier than for their entry. By amending the Foreign Investment and Technology Transfer Act, 2075, the way out has also been made easier for them. In Section 20 of 6 (a) of the Foreign Investment and Technology Transfer Act, it is mentioned that foreign investors who want to withdraw funds must apply to the Nepal Securities Board for approval. In sub-section (4) of the same section, it is mentioned that the body approving foreign investment must also approve the withdrawal within 7 days of receiving the application. Previously, there was a provision that the application should be approved within 15 days of receiving it.

In sub-section (12) of section 20, there is a provision that a foreign investor can file an application with the ministry if he is not satisfied with the decision made by the approval body regarding the withdrawal of his investment amount. Although there is a provision that the ministry should make a decision within 30 days, it is mentioned that the decision should be made within 15 days. Section 18 of the Act provides for transfer of property. It is mentioned that "If you want to transfer the amount of foreign investment to any person or entity free of charge in whole or in part, you should apply to the department".

The information technology (IT) industry that cannot invest in countries other than Nepal will be able to open branches or contact offices in other countries. In section 2 of the Foreign Exchange (Regulation) Act, 2019, clause (x3) is inserted after (x4). In which it is mentioned that investment abroad should mean investment made by a company or establishment established in Nepal. Clause (64) of section 2 refers to investment in shares or purchase of shares of a limited liability partnership, firm, investment fund, company or entity of a similar nature that is incorporated or registered abroad and is not listed in the foreign securities market. In Section 2 of Section (Ch4) of Section 2 of the Act, up to 20 percent of the paid-up capital of a limited liability partnership firm, investment fund, company or limited liability entity incorporated or registered abroad listed in foreign securities markets shall be invested in shares or purchase of shares. is mentioned. However, this subsection also states that such a limit will not apply when a Nepali invests the amount earned during his stay abroad.

Companies or establishments established in Nepal have been made easy to open or register their branches or contact offices abroad. Section 10(a) of the Foreign Exchange (Regulation) Act provides for the regulation of investment abroad by removing the prohibition on investment. According to the amendment made through the Ordinance, the companies or establishments established in Nepal are allowed to invest abroad in Sub-section 1 of Section 10(a) of the said Act. In accordance with subsection (2) of Section 3 of the Act on Prohibition of Investment Abroad, 2021, exempted industries to invest abroad, industries classified as information technology industries according to prevailing laws related to industrial business, amount received from earnings made by a Nepali citizen during his stay abroad. And the foreign investor has arranged the amount of foreign currency received according to sub-section (2) of section 7A of the Foreign Investment and Technology Transfer Act, 2075. In sub-section (2) of section 10(a) of the

Act, sale of employee shares conducted or executed by the main company of a company incorporated in Nepal or other subsidiaries of such main company located abroad shall also apply to the Nepali citizen employees residing in Nepal of the company incorporated in Nepal. Under the scheme, it is mentioned that such employees can receive shares and earn income from such shares without remittance of convertible currency outside Nepal. In sub-section (3), it is mentioned that the conditions to be followed by the person, company or establishment investing abroad, the sectoral maximum limit of such investment and other related provisions shall be as determined by the Nepal Rastra Bank by publicly publishing information. Rajesh Agarwal, president of Nepal Industry Confederation, said that the government is committed to improving the economy even by bringing the ordinance itself and amending some laws. "The subject we have been suggesting has been amended in various laws through ordinances, this shows that the government is ready to improve the economy," he said.

He said that the information technology sector has been given more encouragement as it has been arranged that investments can be made abroad. "For the first time in the information technology sector, an arrangement has been made to allow investment abroad, let other sectors also be opened gradually," he said, "how and in what manner is yet to be said after the information technology sector is allowed to invest abroad, arrangements have been made through an ordinance. The procedure should be implemented quickly.

Earlier, the government had brought an ordinance on 'investment facilitation' targeting the third investment conference last May. The government introduced a bill through an ordinance aimed at the conference to ensure that the government has reformed the investment policy and amended the law. However, the president of the confederation Agarwal expressed his suspicion that "Bill 2081 to amend some Nepal Acts related to Investment Facilitation" was passed by the Parliament but could not be implemented. "An ordinance was brought during the investment conference, it was passed by the parliament but it has not yet been implemented," he said.