KATHMANDU, Jan 30: The government has decided to dissolve the National Trading Limited, a public enterprise established some five decades ago, to ensure regular supply of essential goods at reasonable prices.
Stating that it was not commercially viable to continue its operation with the government support, a cabinet meeting held at Baluwatar on Monday decided to dissolve the public enterprise. Lately, the public enterprise was debt-ridden and was not able to compete in the market.
The annual revenue of the state-owned enterprise was around Rs 50 million in the fiscal year 2015/16 while its operational cost was over Rs 100 million. Earlier, the government had announced that it was planning to merge it with other public enterprises like Agriculture Inputs Company and Nepal Food Corporation and turn it into a new supply company. But the government has stepped back from its earlier announcement of the merger and decided to dissolve it.
As many as 340 employees were working at the National Trading Limited. Earlier, after the enterprise could not cover its operational cost, it had sold its property in the capital and used that money for its operation.
Similarly, the cabinet also decided to amend the statute of the Federation of Nepal Transportation Entrepreneurs for the fourth time.
Likewise, the cabinet also decided to fix protocol of all the representatives in the local units and chief ministers of the provinces.