FinMin seeks suggestions on draft Public Debt Management Act amendment
KATHMANDU: Ministry of Finance has sought suggestions from stakeholders and the general public on a draft bill to amend the Public Debt Management Act, 2079.
Through a notice, the ministry published the draft and urged stakeholders and the public to submit their suggestions.
The ministry said the bill will be finalised by including suggestions as needed. The draft proposes clarifying the role of the Public Debt Management Office (PDMO), 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.
The draft also proposes keeping digital records of government bonds, issuing thematic bonds, and arranging hedging to reduce exchange rate and interest rate risks. It clarifies which sectors and entities the Nepal government can invest in through shares and debt, and which areas are off‑limits for investment.
Accordingly, the draft proposes that investments can be made in public institutions with full or controlling ownership, national priority projects under public‑private partnerships, and intergovernmental international organisations of which Nepal is a member.
The draft proposes 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 bond‑related provisions electronic.
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