KATHMANDU, July 17: The Ministry of Finance has sought suggestions from stakeholders and the general public on the draft bill prepared to amend the Public Debt Management Act, 2022.
Through a public notice, the ministry has made the draft bill public and urged stakeholders and the general public to submit their suggestions.
Public debt hits Rs 2.8 trillion mark
The ministry said the bill will be finalized after incorporating relevant suggestions as needed. The draft proposes clarifying the role of the Public Debt Management Office, providing a legal basis for government equity and loan investments, allowing government bonds to be issued in domestic and international markets, and introducing provisions for issuing bonds in foreign currencies.
The draft bill also proposes maintaining digital records of government bonds, issuing thematic bonds, and introducing hedging mechanisms to reduce exchange rate and interest rate risks. It also clarifies the sectors and entities in which the Government of Nepal can invest through equity and debt, as well as the areas in which such investments will not be allowed.
Accordingly, the draft proposes allowing investments in public institutions in which the government has full or controlling ownership, national priority projects implemented under public-private partnerships, and intergovernmental international organizations of which Nepal is a member.
Similarly, it proposes prohibiting government investment in direct lending, the production and sale of alcohol and tobacco products, casinos and gambling businesses, and foreign employment enterprises.
The draft also includes proposals to streamline the government debt recovery process, impose fines and take action against individuals or institutions that submit collusive or false information during the bond bidding process, and shift certain bond-related procedures to an electronic system.
