KATHMANDU: The High-Level Economic Reforms Recommendation Commission has advised the government to dissolve five underperforming public institutions, including the Janakpur Cigarette Factory.
Submitting its report to the government today, the Commission recommended the closure of Janakpur Cigarette Factory, Butwal Yarn Factory, Nepal Engineering Consultancy Service Centre, National Construction Company Nepal, and Nepal Orind Magnesite Pvt. Ltd., citing their prolonged failure to operate effectively.
The Commission further recommended that the tangible assets of these institutions be transferred to the government’s name and utilized for other productive purposes.
In addition, the report suggested merging Hetauda Cement Industry and Udayapur Cement Industry following a thorough assessment of their assets and liabilities. The remaining shares should then be sold to the private sector.
Regarding Nepal Airlines Corporation, the Commission proposed a restructuring initiative that involves bringing in foreign strategic partners and placing the corporation under temporary foreign management to ensure its commercial viability.
The report also advised transforming the Dairy Development Committee into a provincial public institution, with responsibilities delegated to all seven provincial governments.
To enhance professionalism and reduce political interference, the Commission urged the government to amend existing company laws, ensure timely audits of public institutions, and grant authority for the appointment of competent personnel based on merit.
It also emphasized that public institutions should not receive government loans to cover employee salaries and operational expenses.
In a significant reform measure, the Commission recommended scrapping the Revenue Investigation Department. Submitted to Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, the report argued that other agencies already handle tax investigations and that strengthening these existing bodies would be more effective.
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