The Government of Nepal has launched the ‘Public Enterprises Management and Good Governance Policy, 2082’ with the aim of making public enterprises more competitive and professional. The policy provides guidance to public enterprises while ensuring that the government does not interfere in their daily operations.

Under the strategy, public enterprises will be classified into two categories:

1. Commercial Public Enterprises – those competing with the private sector. These enterprises will have simplified procurement processes.
2. Strategic Public Enterprises – enterprises required to implement government policies, fulfill national or international commitments, or provide essential services where private sector participation is limited. These enterprises may have their legal foundations modified and gradually transformed into company structures.

The policy also emphasizes board independence and professional management. Boards will have representation based on shareholding, and will be responsible for policy formulation, operational strategies, financial discipline, risk management, auditing, and remuneration transparency. They will oversee annual budgets, financial reports, and executive performance evaluations, ensuring accountability in all decision-making.

Additional measures include:

• Implementing merit-based and inclusive selection processes for leadership and board members.
• Digitizing and integrating service delivery.
• Redesigning business processes and promoting transparency in operations and decision-making.
• Regular monitoring and performance evaluation, along with a performance-based incentive system.
• Building organizational capacity, recruiting suitable talent, developing workforce skills, promoting modern technology, and encouraging research, innovation, and quality improvements.

Currently, Nepal has 45 public enterprises, of which 20 are fully government-owned and 25 are partially owned. As of FY 2080/81, the government has invested a total of NRs 7,03,93,88,00,000 in these enterprises.

The policy aims to make public enterprises professionally managed, financially disciplined, and capable of contributing effectively to national development while maintaining good governance.