Nepal government to table five ordinances, withdraw land reform ordinance

KATHMANDU: The Nepal government has decided to withdraw the land reform-related ordinance while proceeding with the approval of five other ordinances in Parliament. The decision was made following an agreement among ruling coalition members, including the Janata Samajbadi Party (JSP) Nepal, during a meeting at prime minister’s official residence in Baluwatar.

The government aims to pass the five ordinances in the upcoming parliamentary session scheduled to begin on March 5, 2024. These ordinances were introduced to enhance economic policies, investment environment, governance, and financial accountability in Nepal, aligning with the country’s ongoing business and economic reforms.

Ordinances Set for Approval
The six ordinances were issued at different times:

December 29, 2023: The Cooperative Amendment Ordinance to reform cooperative laws.
January 12, 2024:
Good Governance and Public Service Amendment Ordinance
Economic Procedures and Financial Accountability (First Amendment) Ordinance
Privatization (First Amendment) Ordinance
Investment and Business Environment Reform Ordinance
January 16, 2024: Land Reform Amendment Ordinance (to be withdrawn).

The government initially tabled all six ordinances in the House of Representatives on February 1, 2024, and scheduled them for discussion on February 7, 2024. However, due to a lack of majority in the National Assembly, the ordinances were later removed from the agenda. Subsequent attempts to table them on February 18 and February 23, 2024, also failed due to political disagreements.

Government Secures Agreement with JSP Nepal

With just 25 days remaining before the ordinances expire, the government reached a consensus with JSP Nepal, allowing the passage of five ordinances while withdrawing the land reform ordinance. As per the agreement:

The House of Representatives will pass the five ordinances on March 4, 2024.
The National Assembly will approve them on March 5, 2024.

UML Chief Whip Mahesh Bartaula confirmed the agreement, stating that the ordinances would now proceed without delay. “The House of Representatives will table and pass five ordinances, and they will be presented in the National Assembly on March 5,” he said.

Political Negotiations and Implications

The delay in passing the ordinances created uncertainty within the ruling coalition. A crucial four-hour meeting on February 29, 2024, at Baluwatar led to the agreement, addressing JSP Nepal’s concerns.

During the meeting, Prime Minister Pushpa Kamal Dahal, Nepali Congress President Sher Bahadur Deuba, and senior leaders urged JSP Nepal Chairman Upendra Yadav to support the remaining ordinances while withdrawing the land reform ordinance.

JSP Nepal leaders, including Vice President Raj Kishor Yadav, Spokesperson Manish Suman, and National Assembly leader Mrigendra Kumar Singh Yadav, participated in the discussions. From UML, Deputy Prime Minister and Finance Minister Bishnu Poudel and Prime Minister’s Advisor Bishnu Rimal were also present.

Urgent Passage Before Legal Deadline

According to Nepal’s legal framework, ordinances must be approved by both houses within 60 days, or they automatically become ineffective. The six ordinances remained stalled for 35 days, raising concerns over delays in Nepal’s economic reforms, foreign direct investment (FDI) policies, and governance efficiency.

To finalize the approval process, the Parliamentary Business Advisory Committee is set to meet today to confirm the legislative agenda. The revised schedule will include the five ordinances while excluding the land reform ordinance.

The government’s move is expected to have a significant impact on Nepal’s business environment, financial regulations, and governance structures, influencing both domestic and international investors.