Nepal Parliamentary Committee Seeks Private Sector Input to Cut Business Hurdles

A parliamentary committee in Nepal has initiated a process to gather crucial feedback from the private sector, aiming to identify and reduce legal procedures and administrative complexities that hinder business operations. The Infrastructure Development Committee of the House of Representatives is actively discussing the current landscape and future potential of public-private partnerships (PPPs) in Nepal's infrastructure development.

Following initial deliberations, the committee has decided to solicit written suggestions from key private sector organizations, including the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Nepal Chamber of Commerce, Confederation of Nepalese Industries (CNI), and Nepal-India Chamber of Commerce and Industry. These stakeholders have 15 days to submit their views on the challenges posed by existing laws, regulations, and procedures. Particular attention is being paid to recommendations for implementing a one-window policy, easing bureaucratic processes, attracting foreign investment, and creating a more favorable environment for repatriating profits and undertaking reinvestment.

In parallel, the Investment Board has been tasked with providing detailed information within the same 15-day timeframe. This includes the current status of hydropower and waste-management projects facilitated under the PPP model, along with any obstacles encountered during their delivery. The committee seeks to understand what initiatives it can undertake to help overcome these challenges.

Furthermore, the committee is requesting clear recommendations regarding necessary reforms to the Investment Board Act and related legislation. A key question is the precise role of the Investment Board: whether its primary focus should be on facilitating and coordinating investments or on the issuance of permits. This seeks to clarify the board's mandate and optimize its effectiveness in promoting economic growth.