Government issuing competition law

Kathmandu March 17-The government is issuing an ordinance on competition to create ‘fair and healthy’ competition in the economy.

Speaking at a programme in the capital on Thursday, commerce secretary Bharat Bahadur Thapa disclosed that the government is issuing the ordinance as the status of competition was poor in the country, according to reports.

“The draft of the ordinance is being finalized and the government is mulling to bring it into effect as soon as possible,” he said.

Thapa said that in the context of increased importance of the World Trade Organisation (WTO) and market economy, a competition law would be an effective instrument to boost ‘free and fair’ business and economic activities.

Speaking at the same programme, Dr Posh Raj Pandey, president of South Asia Watch on Trade, Economics and Environment (SAWTEE), stressed on the need of a competition law to bring the private sector on the right track and discourage distortions in the market. Dr Pandey hoped that the competition law would promote competitive culture in the economy and consumers will benefit to a great extend.

Chandi Raj Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that there is an increasing need for a competition law in Nepal at a time when there are already laws and acts related to securities, secure transactions and insolvency, following Nepal’s accession to the WTO.

“The competition law currently being finalized, among others, must also encourage restructuring of industries and incorporate provisions that enable them to gain an competitive edge and to take benefits of global market access,” Dhakal added.

Advocate Tika Ram Bhattarai, executive member of Nepal Bar Association (NBA) informed that about 100 countries already have competition laws. Even India, Sri Lanka and Pakistan have formulated competition laws.

”The competition law is needed for a free market and healthy competition, to develop competitive culture and ensure rights of consumers for consumption of goods they prefer,” Bhattarai added.