The House of Representatives (HoR) on Wednesday, March 5, endorsed five out of six ordinances issued by the government earlier this year.
The ordinances, introduced in the first week of January 2025, were tabled in the Lower House on January 31 following the commencement of Parliament’s winter session.
During Wednesday’s session, all ordinances, except for the one related to land, were put forward for a decision. Despite strong opposition from parties such as the CPN (Maoist Centre), Rastriya Swatantra Party (RSP), Rastriya Prajatantra Party (RPP), and CPN (Unified Socialist), the ordinances were passed by a majority vote. The ruling coalition defended the ordinances as essential for overcoming bureaucratic delays and ensuring timely policy implementation.
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The endorsed ordinances include the Ordinance, 2081 to amend some Nepal Acts related to promotion of good governance and delivery of public services; Ordinance, 2081 to amend the Financial Conduct and Fiscal Responsibility Act, 2076; Ordinance, 2081 to amend the Privatization Act, 2050; Ordinance, 2081 to amend some Nepal Acts related to improvement of economic and business environment and promotion of investment; and Ordinance, 2081 to amend some Nepal Acts related to cooperatives.
Ordinance, 2081 to amend certain laws of Nepal relating to land was not put to a vote.
While opposition parties have condemned the government’s reliance on ordinances, the ruling alliance maintained that they are necessary for economic reforms and governance efficiency. Prime Minister KP Sharma Oli had previously told Parliament that these measures were critical for boosting private sector confidence, fostering an investment-friendly environment, and ensuring good governance.
During discussions on the Financial Conduct and Fiscal Responsibility Ordinance, Finance Minister Bishnu Paudel reiterated the government’s commitment to removing Nepal from the FATF (Financial Action Task Force) Grey List ahead of schedule.
On February 21, FATF, the intergovernmental body overseeing global anti-money laundering (AML) and countering the financing of terrorism (CFT) compliance, placed Nepal on its grey list for the second time. Nepal was previously greylisted from 2008 to 2014 but was removed after implementing legal and institutional reforms.
The grey list, officially termed ‘ Jurisdictions under Increased Monitoring ’, includes countries working with FATF to address deficiencies in their AML/CFT frameworks. When FATF places a jurisdiction under increased monitoring, it means the country has committed to resolving strategic deficiencies within agreed timeframes and is subject to closer scrutiny. Nepal has been placed on the grey list for a period of two years.
“I will present a clear explanation in Parliament on why Nepal was placed on the Grey List,” said Paudel. “Our goal is to exit the list within two years, but we are confident of achieving this even sooner.”
The Finance Minister further informed Parliament that the government is preparing a White Paper to outline Nepal’s FATF compliance history, past policy actions (or inactions), and an assessment of previous governments’ failures in addressing financial transparency issues.
With the House of Representatives having approved the five ordinances, they must now be passed by the National Assembly, the Upper House of Nepal’s Federal Parliament, too. Once endorsed, the government can introduce replacement bills to formally enact them into laws.
