December 6: Stakeholders have urged the government to remove overlapping areas of law in order to attract foreign investment. According to experts, regulatory overlap has been the main obstruction to creating investment-friendly environment in Nepal.
They stressed on the need of amending or scrapping some overlapping issues of law as per the requirement.
Speaking at an interaction organized by Samriddhi Foundation and Society of Economic Journalists of Nepal (SEJON) in the capital on Thursday, the experts argued that foreign investors have been perplexed by the regulatory overlap in the country.
Stakeholders also suggested simplifying legal procedures to attract investment.
Chairman of the Law Commission Madhav Poudel said it is important to see the implications of laws than to argue about the authenticity of the laws. He admitted that it is difficult to work in Nepal due to overlapping issues of laws, which have largely been ignored by the government.
“The mobilization fund received for any project is used for filling the pockets of political party leaders, civil servants and mobsters. We have never realized how to make the service available to the public in a convenient way,” said Poudel.
Meanwhile, former finance secretary Rameshwar Khanal said clash of legal provision affects the overall business environment. He also pointed out to the problem of registering industry and the process of terminating the registration.
According to Khanal, the laws of Nepal only favour capitalists as a common man can never become an entrepreneur due to the legal complexities.
Joint Secretary at the Ministry of Finance Uday Raj Sapkota opined that formulating separate laws for each ministry is causing problems.
“We talk about integrated law but practically we are formulating separate laws,” he said.
“We must seek a solution to this,” added Sapkota.