Kathmandu. The High-Level Economic Reforms Advisory Commission has recommended the government to liquidate five public enterprises, including the Janakpur Cigarette Factory. The commission, submitting a report to the government today, has recommended the liquidation of five public enterprises that have failed to operate their businesses.
The recommendations for liquidation include the Janakpur Cigarette Factory, Butwal Yarn Factory, Nepal Engineering Consultancy Service Center, National Construction Company Nepal, and Nepal Orient Magnesite Pvt. Ltd. The commission has suggested that if these institutions cannot be operationalized, they should be dissolved and the immovable property in their name should be transferred to the government and managed, and the immovable property of such institutions should be put to other productive uses.
The commission has also suggested that the Hetauda Cement Industry and Udayapur Cement Industry should be merged after conducting a valuation of assets and liabilities (DDA) and the government should keep only a part of the shares and sell the remaining shares to the private sector. The commission’s report mentions that the Nepal Airlines Corporation should be restructured and managed professionally by bringing in an external strategic partner.
It is stated that it would be appropriate to give the corporation to foreign management for some time to make it professional. Similarly, it has been recommended to convert the Dairy Development Corporation into a public corporation of the provincial government in seven provinces.
Amendment to the existing Companies Act to operate public corporations professionally without political interference, provision for holding companies as public limited companies under the sole ownership of the government, and timely audit of all public corporations have been suggested by the commission.
The government has also been recommended to make arrangements to appoint capable people in public corporations by providing performance indicators and to provide autonomy so that they can operate professionally. The report states that public corporations should be converted into public limited companies and arrangements should be made to sell shares to the general public and to mobilize capital for investment by issuing bonds.
The commission also suggests that loans to pay salaries or other expenses of employees in public corporations should be stopped.
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