Kathmandu — The Government of Nepal has rolled out the Public Enterprise Management and Governance Policy, 2082, aiming to make state-owned enterprises more efficient, competitive, and accountable. The policy envisions running public enterprises with professionalism and competitiveness on par with the private sector.
The government says it will now focus mainly on policy guidance, stepping back from direct involvement in daily operations. The new approach is designed to promote autonomy, transparency, and accountability across public enterprises.
Classification and Structural Reform
Under the new policy, public enterprises will fall into two groups — commercial and strategic. Those capable of competing with private companies will be categorized as commercial enterprises, where procurement and decision-making will be made faster and simpler.
Enterprises tied to national priorities, international commitments, or essential services not handled by the private sector will be classified as strategic public enterprises. The government also plans to gradually turn all public enterprises into company-based entities.
To do this, existing laws will be revised to ensure board representation based on share ownership, giving boards greater freedom to set policies and carry out strategic plans.
Governance, Transparency, and Human Resource Development
The policy places strong emphasis on good governance, transparency, and accountability. Boards of directors and chief executives will have clearly defined roles, with performance evaluations made a regular practice.
The government aims to tighten financial discipline, strengthen risk management, modernize auditing systems, and keep the remuneration framework fair and open. It also stresses the need to develop skilled human resources and attract new talent.
Public enterprises are expected to embrace technology-driven service delivery and redesign business processes for better efficiency. The government says research, innovation, and quality improvement will be key to meeting modern management standards.
Investment, Current Status, and Long-Term Vision
Nepal currently has 45 active public enterprises — 20 fully owned by the government and 25 partially government-owned. By the end of fiscal year 2080/81, government investment in these enterprises had reached Rs 703.93 billion, showing the sector’s large financial footprint and importance to the national economy.
The government also plans to introduce regular monitoring and evaluation systems, performance-based incentives, and stronger control of potential financial risks. In its statement, the government said, “Public enterprises should no longer be seen as a burden on the state but as competitive institutions that help strengthen Nepal’s economy.”
