The government has approved the Public Enterprises Management and Governance Policy, 2082 with the goal of strengthening efficiency, transparency, and accountability in public institutions. The Cabinet meeting held on Ashoj 12 endorsed the new policy, which aims to make public enterprises competitive, professional, autonomous, and results-oriented in the long run.

According to the Ministry of Finance, Nepal currently has 45 public enterprises in operation. Among them, 20 are fully government-owned while 25 operate with partial state investment. Of these, 28 enterprises are generating profits, whereas 15 are operating at a loss. In the fiscal year 2080/81, the government invested over NPR 700 billion in these enterprises, but the return on investment has declined to just 2.4 percent. The total losses of the deficit-running institutions stand at NPR 3.63 billion.

The policy identifies weak financial performance as a result of managerial inefficiency, political interference, ineffective decision-making, poor internal control systems, and high administrative costs. To address these issues, the government will separate the regulatory and operational roles of institutions, ensuring that policy-making bodies do not interfere directly in day-to-day operations.

Under the new policy, every enterprise must publish annual and quarterly performance reports. A performance agreement will be mandatory between the Chief Executive Officer and the Board of Directors. Administrative expenses must not exceed 20 percent of the total expenditure, and all institutions must adopt Nepal Financial Reporting Standards (NFRS) for financial statements.

The policy also stresses strengthening internal control systems, reducing financial risks, and enhancing monitoring and evaluation mechanisms. Furthermore, the adoption of a digital accounting system will be compulsory for all public enterprises.

Officials at the Ministry of Finance believe the policy will enhance transparency and financial discipline. They expect it will improve service delivery and increase returns from government investments.

To improve underperforming enterprises, the government plans to introduce targeted reform programs, with a long-term vision of making public institutions autonomous, efficient, and financially sustainable. The policy will be implemented in phases starting from the next fiscal year.