Most of the public enterprises (PEs) are burden to the government as well as to tax payer. However, there is no radical recommendation to government by Commission for Review of Government Budget Management and Expenditure System to correct the inefficient system of PEs. If private sector is able to provide the services, then we don’t need PEs. There is no hire and fire system in Nepal, it is making performance of PEs very much ineffective. Because, once worker or staffs are hired, it becomes long term liabilities for the PEs. They must be paid even there is no production. In addition, they demand bonus even PE is in loss. As an example, we recently saw a case in Nepal Oil Corporation (NOC), where staffs are found to think themselves as a proprietor of the NOC. They were demanding bonus even NOC is in loss. Similar problems are found in other PEs as well.
Therefore, there is only one alternative of PEs that is to make long term strategy to liquidate them and encourage private sector. Problem in liquidation arises only from one side that is from incumbent staffs and workers. There is also a solution for it. The existing capable staffs can be transferred to government sector. For example, dairy development corporation (DDC) can be liquidated and its staffs can be transferred to "Gunastar tatha Naap Taul Bivag" (Quality Control Authority) of government, where they can play a crucial role for regulation and monetoring the dairy industry. Similar procedure can be applied to other PEs like NOC, Sajha etc. Government should have a regulatory role, instead to participate in the commerce.
Private sector growth is the people's growth.Private business are the people's business.If one want to serve people with an expectation to earn profit then there is no reason for the government to block their business. Let us give a chance to private sectors in petroleum supply, electricity distribution, water supply etc. It is a key to development for Nepal. In Nepal, many private businesses performed well services. We can see the private sectors in various industries like internet services,telecommunication, banks, airlines which have good regulations of the government almost performed well in Nepal. Let us think out-of-the-box.
Therefore, there is only one alternative of PEs that is to make long term strategy to liquidate them and encourage private sector. Problem in liquidation arises only from one side that is from incumbent staffs and workers. There is also a solution for it. The existing capable staffs can be transferred to government sector. For example, dairy development corporation (DDC) can be liquidated and its staffs can be transferred to "Gunastar tatha Naap Taul Bivag" (Quality Control Authority) of government, where they can play a crucial role for regulation and monetoring the dairy industry. Similar procedure can be applied to other PEs like NOC, Sajha etc. Government should have a regulatory role, instead to participate in the commerce.
Private sector growth is the people's growth.Private business are the people's business.If one want to serve people with an expectation to earn profit then there is no reason for the government to block their business. Let us give a chance to private sectors in petroleum supply, electricity distribution, water supply etc. It is a key to development for Nepal. In Nepal, many private businesses performed well services. We can see the private sectors in various industries like internet services,telecommunication, banks, airlines which have good regulations of the government almost performed well in Nepal. Let us think out-of-the-box.
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