KATHMANDU: 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, 2079.

Through a notice, the ministry has made public the draft and urged the stakeholders and the general public to submit their suggestions.

The ministry has stated that the bill will be finalized by including the suggestions as needed. The draft proposes clarifying the role of the Public Debt Management Office, giving a legal basis for government share and loan investments, allowing government bonds to be issued in domestic and foreign markets, and providing provisions for issuing bonds in foreign currency.

Also, the draft bill has proposed to keep digital records of government bonds, issue ‘thematic bonds,’ and arrange ‘hedging’ to reduce exchange rate and interest rate risks. The bill also clarifies which sectors and entities the Nepal government can invest in through shares and debt, and which areas are off-limits for investment.

Accordingly, it has been proposed that investments can be made in public institutions with full or controlling ownership, national priority projects under public-private partnerships, and intergovernmental international organizations of which Nepal is a member.

Similarly, it is proposed that the government should not invest in direct lending, the production and sale of alcohol and tobacco products, casinos and gambling houses, and foreign employment businesses.

The draft also includes proposals to streamline the government debt recovery process, take action and impose fines on individuals or institutions that present collusive or incorrect information in the bond bidding process, and make some of the bond-related provisions based on an electronic system.