Monday, July 23, 2012

Govt should let entrepreneurs invest abroad: Minister Jha

Contrary to the law of the land and instead of creating investment-friendly environment in the country, caretaker minister for Industry Anil Kumar Jha today said that the government should let entrepreneurs invest abroad legally.
Addressing an interaction on 'Draft Industrial/Enterprises Act 2062' organised by Federation of Nepalese Chambers of Commerce and Industry (FNCCI) here today, he said that the country is witnessing capital flight through informal channel. "Thus, its better to let the entrepreneurs invest abroad through legal channel, however only in few sectors," he said, urging the entrepreneurs to be disciplined for the industrial development.
Jha, on the occasion, also informed that the government is planning to bring the Industrial/Enterprises Act 2062 through ordinance. "
Speaking at the interaction, chief executive of the Investment Board Radhesh Pant said that the ineffective implementation has created lots of trouble, though there is no dearth of Acts in the country to promote and attract investment.
He also asked the domestic investors to be competitive in the market.
The entrepreneurs, however, suggested various amendments in the draft Act according to the changed business and economic scenario. They also proposed a slew of suggestions in the draft Act that is expected to harmonise the legal provisions and give legal teeth to the investors in securing their investment apart from attracting domestic and foreign investments.
The private sector asked the government to include incentives and tax holiday with a clear and time-bound implementation framework to attract more investment. "The ambiguity in the Act will not serve the interest of the government and investors both," they said, asking the government to make clear provisions to encourage the investors.
The interaction, third in the row, to discuss among the stakeholders before finalising the Act, is the last one that will be helpful to the government to formulate Act in consultation with stakeholders, according to former vice chair of National Planning Commission (NPC) Prithvi Raj Ligal.

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