Kathmandu. The way has been opened for Nepali businessmen to invest abroad. The ban has been lifted after the government decided to repeal the Foreign Investment Ban Act, 2021.
Businessmen have been demanding the repeal of this act for a long time. For a long time, nepali entrepreneurs have been demanding the repeal of this act, saying that nepali entrepreneurs have been deprived of various investment opportunities in the world.
The government is preparing to repeal this act within two years. A high-level economic reform commission headed by former secretary Rameshwor Khanal had suggested scrapping the act. The government had formed a committee under the leadership of these secretaries to study what suggestions would be implemented from the suggestions and what suggestions should not be implemented. Revenue Secretary at the Ministry of Finance Dinesh Ghimire, Commerce Secretary at the Ministry of Industry, Commerce and Supplies Govinda Bahadur Karki and Secretary at the Council of Ministers and Prime Minister’s Office Chunamadi Poudel were part of the committee.
The committee had prepared the ‘Economic Reform Action Plan 2082 BS’. The action plan has already been approved by a meeting of the Council of Ministers held on May 15. The action plan proposes to repeal 14 acts. One of them is the Banning of Foreign Investment Act 2021.
The Ministry of Law, Justice and Parliamentary Affairs has been in favor of not allowing Nepalis to invest abroad after the repeal of the law. The ministry has planned to release the investment only on the basis of certain conditions. Now the ministry will make another law to repeal this act. After this, it has to be passed by the Council of Ministers and published in the newspaper after passing through both houses of parliament.
There are various investment opportunities abroad. Nepalis can benefit from these opportunities. It will also increase the competitiveness of Nepali businessmen in the global market. At present, there is a problem in bringing the money invested by Nepali businessmen abroad to Nepal.
With the repeal of this law, the way will also be opened for Nepali businessmen to bring these amounts to Nepal.
However, the problem of under-marketing in the Nepali import market is likely to increase. The problem of under-invoicing on goods with high customs duties may increase. For example, an importer called ‘A’ has a stake in China. It also works as an import worker in Nepal. Now he can pay the remaining amount from the investment in China by making bills at a lower price. This could result in huge revenue losses to the state.
Despite not being allowed to invest abroad, the problem of under-invoicing and over-invoicing is being seen in imports. However, the umbrella organizations of entrepreneurs are welcoming the government’s second phase of economic reforms.
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