KATHMANDU, April 22: At a time when there is a plethora of criticisms that the investments made in public enterprises have not yielded returns, the government has formed a committee to make suggestions to reform the public institutions.
A meeting of the Council of Ministers held on Tuesday formed a Public Institutions Suggestion Committee chaired by Shankar Prasad Adhikari. The government has invested about Rs 700 billion in public institutions. Apart from essential services, there should be a return after investing in any sector, but the return of 150 organizations is zero.
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According to the 60th report of the Financial Comptroller General Office (FCGO), the government has invested Rs 374 billion in loans and Rs 357 billion in shares in public institutions until the fiscal year 2021/22. The rationale of investing in public institutions was questioned as they were unable to give any returns based on investment.
Public corporations have not paid interest because they are in losses. The government has to invest even in institutes that are closed or are non-functional. According to the FCGO, the institutes have not prepared a business plan and have not been able to give returns due to their weak managerial capacity.
