Privatization of eight PEs soon

The government has begun the process of privatizing eight more public enterprises, with the Privatization Committee recommending their classification to the Council of Ministers. The decision was made at a committee meeting held on Monday under Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel.

The committee proposed the classification of closed, sick and poorly-performing institutions, recommending privatization of Janakpur Cigarette Factory, Nepal Metal Company, Hetanda Textile Industry, Biratnagar Jute Mill, Butwal Spinning Mills, Gorakhkali Rubber Industry, Udayapur Cement Factory and Hetauda Cement Factory. Once the Council of Ministers classifies these PEs, a study committee comprising experts will evaluate the assets and liabilities of each entity. 

Based on their assessment, the pattern and process of privatization will be identified and recommendations forwarded to the government for its go-ahead. The privatization of PEs, which began in the 1990’s in Nepal, has come under considerable criticism, with some critics describing it as a major step toward the country’s deindustrialization that has forced Nepali youths to go abroad for jobs.