Government to Repeal 14 Laws and Introduce New Legislative Framework Within Two Years: Reform Agenda Unveiled

The Government of Nepal has announced an ambitious legislative overhaul, aiming to repeal 14 outdated laws, merge several others, and introduce multiple new acts to modernize the country’s legal and economic framework within the next two years. This plan is part of the Economic Reform Implementation Action Plan 2082, developed based on recommendations from the High-Level Economic Reform Commission 2081, chaired by former finance secretary Rameshore Khanal.

The announcement signals Nepal’s intent to streamline and update its legal system to better reflect contemporary economic realities, reduce bureaucratic bottlenecks, and enable more effective governance.

Which Laws Will Be Repealed?

Among the 14 laws slated for repeal are several long-criticized for being outdated or redundant in today’s legal and economic context:

• Income Tax Stamp Duty Act, 2019

• Black Market and Some Other Social Offenses and Punishment Act, 2032

• Private Forest Nationalization Act, 2013

• Administrative Procedure Regulation Act, 2013

• Compensation Act, 2019

• Birta Abolition Act, 2016

• Revenue Leakage Control Act, 2052

• Foreign Investment Restriction Act, 2021

• Nepal Agency Act, 2014

• Provincial Development Programs Implementation Act, 2013

• Social Behavior Reform Act, 2033

• Nepalese Currency Circulation Promotion Act, 2014

• Financial Intermediation Institutions Act, 2055

These laws have been flagged for either being obsolete or overlapping with more recent legislation. Their removal is expected to reduce legal clutter and improve administrative efficiency.

Acts to Be Merged and Replaced

The government also plans to merge and revise key laws to form more comprehensive legislative tools. For example:

• The Immovable Property Acquisition Act, 2013 and the Land Acquisition Act, 2034 will be merged into a unified Private Property Acquisition Act.

• The Patent, Design, and Trademark Act, 2022 and the Copyright Act, 2059 will be consolidated into a new Intellectual Property Rights Protection Act.

These merged acts are expected to simplify legal interpretation and better align Nepal’s laws with international standards.

Old Laws to Be Repealed and Replaced

Two existing acts will be repealed and replaced with more modern legislation:

• The Imports and Exports (Control) Act, 2013 will be replaced by the Imports and Exports Regulation Act.

• The Drugs Act, 2035 will be replaced with the Health Materials Regulation Act, which is expected to provide a broader regulatory framework covering not only medicines but also medical devices and health-related supplies.

This shift reflects Nepal’s need for more comprehensive sectoral regulation—particularly post-pandemic—where health supplies, logistics, and trade require clearer oversight.

New Laws to Be Introduced

The reform action plan also proposes entirely new legislation in key sectors, reflecting emerging needs in infrastructure, investment, and credit markets:

1. Construction Materials Regulation Act – to manage sand, gravel, and stone resources.

2. Public Warehousing Act – to support goods exchange and warehousing systems.

3. Credit Information Reporting Act – to formalize credit rating and information-sharing infrastructure.

4. New Debt Relief Act – designed to support financially stressed small consumers and entrepreneurs.

5. Limited Liability Partnership (LLP) Act – to provide an alternative registration route for investment and partnership-based firms.

These new laws are tailored to address Nepal’s evolving economic demands, such as urban development, infrastructure financing, and access to credit, especially for SMEs.

Interpretation: Legal Modernization to Support Economic Reforms

This wave of legislative reform aligns with Nepal’s broader economic modernization agenda. By retiring outdated statutes and introducing modern, business-oriented legislation, the government aims to:

• Attract foreign and domestic investment

• Improve regulatory clarity and legal enforcement

• Create a more business-friendly legal environment

The proposed LLP Act in particular is expected to facilitate alternative investment vehicles, while the Credit Information Act will play a key role in building financial discipline and transparency in lending.

Additionally, by overhauling land acquisition and intellectual property laws, Nepal is signaling readiness to accelerate infrastructure development and safeguard innovation and creativity, both essential for long-term growth.

Reform with Responsibility

While ambitious, the two-year timeframe for implementing such sweeping legal changes will test the government’s institutional capacity and political resolve. Close coordination between ministries, Parliament, and regulatory bodies will be critical.

The reform plan represents a strategic departure from Nepal’s traditional piecemeal legislative updates, offering instead a comprehensive and forward-thinking framework for sustainable development.

If executed effectively, these legal reforms could transform Nepal’s economic landscape and solidify its appeal as a competitive, investment-friendly emerging economy.