NCC welcomes ordinance meant to improve economy, business environment

\Kathmandu, Jan. 14

The Nepal Chamber of Commerce (NCC) has hailed the ordinance recently introduced by the government to enhance the economic and business environment and boost investment as 'a positive and far-reaching measure'.

The ordinance which aimed at amending laws to improve public service delivery, foster a business-friendly climate, and attract investments, has been deemed crucial for the country's economic progress, the business body said in a statement on Tuesday.

"The ordinance focuses on public service reforms and the improvement of economic and business conditions while fostering investment. We believe this will bring significant improvements to the nation’s economic environment and attract more investments," read the statement.

According to the NCC, it had consistently called on the government to prioritise legal reforms for creating an investment-friendly atmosphere. President of the NCC, Kamlesh Kumar Agrawal, appreciated the government’s commitment to economic recovery, and welcomed the provision in the ordinance allowing foreign investors to repatriate funds within seven days. “This sends a strong message about the country’s conducive investment environment,” he said.

The ordinance includes provisions enabling the information technology (IT) sector to open offices and invest abroad, which the NCC described as a significant milestone for IT industry growth.

Likewise, the ordinance amends 11 laws related to the improvement in economic and business environment, and 13 laws promoting good governance and public service delivery, which the NCC considered vital for sustainable economic development.

The NCC also welcomed the provision allowing loans to be secured with fixed assets or contracts, excluding land, as a measure to revitalise the economy and financial sector. In the context of surplus liquidity in the banking sector, these provisions are expected to ease credit access.

"Special Economic Zones (SEZs) have also been given priority, with amendments to the SEZ Act 2073. The requirement for industries within SEZs to export 75 per cent of their production has been removed, which the NCC regards as a progressive step," read the statement.

Expanding SEZ eligibility to the service sector and offering tax incentives to industries relocated to SEZs are measures expected to facilitate private sector involvement and enhance domestic production and market accessibility, it said.

Emphasising the ordinance’s importance in addressing economic stagnation, the NCC has urged the government to finalise it during the winter session of parliament.

 Published in The Rising Nepal daily on 15 January 2025.