On 30th June 2023, Bikalpa, an Alternative, organized a Liberty Discussion at Dynamic Education Complex in Biratnagar. The Liberty Discussion provides a platform for young minds to broaden their perspectives on political economy, governance, and democratic principles. The specific topic of discussion for this session was “Public Enterprises in Nepal: A burden on Taxpayers.”
During the discussion, the attendees actively participated by exchanging ideas, insights, and perspectives on the topic. This engagement fostered a comprehensive understanding of the various aspects related to public enterprises in Nepal. The discussion began with an overview of public enterprises, highlighting their significance in the national economy and their role in providing essential services to the public. Public enterprises (PEs) are government-owned or controlled businesses that are established to provide goods and services to the public.
The participants expressed differing opinions on the role of PEs in Nepal. Some argued in favor of their existence, highlighting their crucial role in providing essential goods and services. They viewed PEs as vehicles for development and the execution of socio-economic policies. Conversely, others contended that PEs place a burden on taxpayers and should be privatized.
As the discussion began the discussion revolved around the topic of how public enterprises in Nepal has been a subject of debate for many years. Some participants argue that PEs are essential for providing essential goods and services to the public, while others argue that they are a burden on taxpayers and that they should be privatized. They pointed out that many PEs are currently incurring losses and require government subsidies to sustain their operations. Different examples were provided to support the argument.
The discussion was forwarded along with the explanation of in private enterprises, they have shareholders, and to retain such shareholders, they must earn profit and function well. PEs don’t have that motivating factor that ultimately affects how the enterprise is being run. This shows how PEs and private sectors don’t have equal footing. Overall, the participants also shared their valid statements on how public choice theory works in the market. In conclusion participants suggested the reform policy on Public Enterprises of Nepal could be best course of action for development of economic situation in Nepal.
