The High-Level Economic Reforms Advisory Commission has recommended that the government liquidate five public enterprises, including the Janakpur Cigarette Factory.
The commission submitted a report to the government on Friday, suggesting that five public enterprises which have failed to operate their businesses effectively should be liquidated. The recommended enterprises for liquidation are: Janakpur Cigarette Factory, Butwal Yarn Factory, Nepal Engineering Consultancy Service Center, Nepal Infrastructure Construction Company Limited, and Nepal Orient Magnesite Pvt. Ltd.
If these corporations cannot be revived, the commission advises that they be liquidated and their immovable properties be transferred to the government for management. These properties should then be put to other productive uses.
The report also recommends merging Hetauda Cement Industry and Udayapur Cement Industry through a Disposition of Assets and Liabilities (DDA) assessment. The remaining shares should be sold to the private sector, retaining only a small government stake.
Regarding Nepal Airlines Corporation, the commission recommends restructuring and professional management by involving external strategic partners. It states that placing the corporation under foreign management temporarily could help make it more efficient and professional.
Similarly, it has been recommended that the Dairy Development Corporation be converted into a public corporation under the provincial governments of the seven provinces.
The commission's report includes several legal and structural recommendations: amending the existing Companies Act to allow public corporations to operate commercially without political interference; maintaining holding companies as public limited companies solely owned by the government; and ensuring timely audits of all public corporations.
The commission further recommends appointing capable individuals to public institutions based on performance indicators and granting them autonomy to enable professional operation.
Lastly, the report advocates for converting public corporations into public limited companies, offering shares to the general public, and raising capital through bond issuance. It also suggests that public corporations should no longer receive loans to cover employee salaries or other expenses.
