"Investment will be discouraged if private sector is brought under CIAA's ambit"

KATHMANDU, SEPTEMBER 9: The Nepal Chamber of Commerce (NCC) has drawn the attention of Chief Secretary Ek Narayan Aryal to the proposed bill's provision that places the private sector under the jurisdiction of the Commission for the Investigation of Abuse of Authority (CIAA). A team led by NCC President Kamalesh Kumar Agrawal raised this concern during a meeting yesterday  with the newly-appointed Chief Secretary, as part of offering their congratulations and best wishes.

The NCC expressed concerns that the bill, currently under consideration by the State Affairs Committee of the Federal Parliament, would make the private sector more vulnerable and discourage investment, especially given the present economic slump. The Chamber stated in a press release that the provision in the proposed CIAA Third Amendment Bill, 2076, which brings private sector businessmen and companies under the CIAA’s jurisdiction, would dampen investment from the private sector.

The NCC emphasized the need for policy stability to ensure the nation's economic prosperity. It argued that an investment-friendly climate, increased production, and job creation can only be achieved through consistent and stable policies.

Additionally, the NCC has urged the Chief Secretary to revise a provision in the Bank and Financial Institutions Act, which prevents individuals holding more than one percent of shares from borrowing from any institution. The NCC argued that this would adversely affect the private sector, which has significantly contributed to the growth of Nepal's banking sector. They warned that if this provision remains unchanged, it could directly impact investment and hinder economic growth.

Furthermore, the NCC called for the Department of Revenue Investigation and the Department of Money Laundering Investigation to be brought under the Ministry of Finance. They also highlighted other concerns, such as the impracticality of the provision preventing the sale of shares owned by proprietors for one year, as mentioned by NCC's immediate past president, Rajendra Malla.

Senior Vice-President Deepak Malhotra pointed out that issues in the real estate sector have arisen due to Nepal Rastra Bank's policy, which requires income sources to be double the amount of the loan taken. Vice-President Deepak Shrestha raised concerns about the potential impact on Nepali industries when patent rights are issued to foreign companies.

In response, Chief Secretary Aryal assured the NCC delegation that the government is committed to working with the private sector for the country's economic prosperity. He also stated that the government would collaborate with private sector organizations like the NCC to curb unusual price hikes and black marketing during the festival season.