Despite various inefficiencies, government still want to be active in commercial and business activities in Nepal. However, quesition arises why to contribute our everyday meal for inefficient business?
There is an article which rightly advocates in favor of taxpayers right. Why should the tax payers’ money of a poor nation like Nepal be spent to pay the huge losses of Janakpur Cigarette Factory, that of all the commodities produces cigarettes, can’t compete with its private sector rivals?
Whatever few PEs are making, profits are because they enjoy virtual or actual monopoly markets and not because they are efficient. For instance, despite its poor services Nepal Telecom Ltd (NTL) earns a huge profit, simply because its competitors are too small and too new to challenge its domination in the lucrative market. Other monopolists like Nepal Electricity Authority and Nepal Oil Corporation that enjoy huge captive markets are not as lucky as NTL; with chronic ills like oversized structure, swollen staff, wasted resources, high leakage in operation and corruption their financial health is very poor. The condition of other PEs too, is not very different.
There is an article which rightly advocates in favor of taxpayers right. Why should the tax payers’ money of a poor nation like Nepal be spent to pay the huge losses of Janakpur Cigarette Factory, that of all the commodities produces cigarettes, can’t compete with its private sector rivals?
Whatever few PEs are making, profits are because they enjoy virtual or actual monopoly markets and not because they are efficient. For instance, despite its poor services Nepal Telecom Ltd (NTL) earns a huge profit, simply because its competitors are too small and too new to challenge its domination in the lucrative market. Other monopolists like Nepal Electricity Authority and Nepal Oil Corporation that enjoy huge captive markets are not as lucky as NTL; with chronic ills like oversized structure, swollen staff, wasted resources, high leakage in operation and corruption their financial health is very poor. The condition of other PEs too, is not very different.
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