The study report streamlines several challenges faced by public enterprises from various sectors in Nepal. Those challenges include: striking a balance between its commercial and non-commercial goals and problems with accountability and autonomy. Overall, one of the major challenges is tied to the incentive system that PEs as a whole faces. The study report outlines recommendations that can help overcome these challenges, which include revision of the incentive system, structural reforms for autonomous functioning, and a serious re-evaluation of the significance of some public enterprises.
It is also published in Nepali.
“Public enterprises in Nepal, being a direct entity of the government, have the same bureaucratic process of functioning as any other government office. Due to this reason along with the absence of clear objectives and goals, and with no mechanism for monitoring and evaluating these enterprises have not been able to perform to the best of their capacity. The challenge for public enterprises in Nepal is centered around striking a balance between its commercial and non-commercial aspects which leads to problems with accountability and autonomy” – An excerpt