Govt prepares draft IIA aimed at attracting foreign investment

The government has drafted an Integrated Investment Act (IIA) comprising all the previous acts related to investment and industries in order to attract foreign as well as domestic investment in the country.
The IIA draft is based on three existing laws namely, Investment Board Act (IBA) 2012, Industrial Enterprises Act (IEA) 1992 and Foreign Investment and Technology Transfer Act (FITTA) 1992.
“The draft of the act envisages protection of foreign as well as domestic investment in the country,” said an official involved in preparing the draft.
“This act will specifically oversee investment in the country.”The government in its mid-term review of the budget for the current fiscal year 2012/13 has categorically said that the government has prepared the draft IIA. "This act has said that the government would treat foreign investors on par with domestic ones,” the official said on condition of anonymity.
The draft Act also has reduced the list of areas that have not been opened for foreign investment, a knowledgeable source revealed. However, the source expressed reluctance to divulge details.
The draft IIA, which is based on previous Acts, has devised ways of treating foreign as well as domestic investment in the country. “The new draft has certain provisions that are aimed at promoting foreign investment in the country,” the official said.
The government so far has failed to endorse policies to create favorable environment for investment due to absence of parliament in the country. The government had announced to revise the existing IEA 1992, FITTA. Similarly, the government has been trying to endorse special economic zone (SEZ) Act in the country.
According to the official, the draft IIA is also not going to be endorsed at this time. “The draft has been formulated but it´s not going to be endorsed as other major important bills are still pending," the official said.
The government that formed Investment Board of Nepal (IBN) more than a year ago to implement mega projects has prepared drafts of different Acts over the last one-and-a-half years. “But, we have not been able to get these Acts endorsed due to absence of parliament,” said the official.