Kathmandu, October 28: The government has introduced the “Public Institutions Management and Governance Policy, 2082” with the objective of making public institutions more competitive and professional. The policy states that while the government will provide necessary guidance to these institutions, it will not interfere in their day-to-day operations.
According to the new strategy, public institutions will be categorized into two groups — professional and strategic. Institutions that compete with the private sector will be placed under the professional category, and their procurement processes will be simplified. Likewise, institutions essential for fulfilling national commitments or providing crucial services not covered by the private sector will be classified as strategic public institutions.
The government has adopted a strategy to gradually convert all public institutions into companies by changing the legal basis for their establishment. It also plans to amend existing laws to ensure that representation on the board of directors is based on share ownership. The board will be made capable and independent to formulate and implement policies, business objectives, and operational strategies.
The policy aims to make the board of directors and management fully accountable for the overall decision-making and performance of the institution under prevailing laws. Additionally, it requires that business plans, annual budgets, and financial reports be approved transparently; the performance of the chief executive be evaluated; and auditing, risk management, and remuneration systems be made transparent.
The strategy also ensures merit-based and inclusive leadership selection processes, promotes technology-driven and integrated service delivery, and upholds transparency. It emphasizes regular monitoring and evaluation, transparent financial management, and economic strengthening of institutions. The policy further includes identifying and controlling potential financial risks, implementing performance-based incentive systems, enhancing human resource capacity and skills, and promoting the use of modern technology.
Currently, there are 45 public institutions in the country, of which 20 are fully owned by the government and 25 are partially owned. By fiscal year 2080/81, the government had invested a total of Rs 703.93 billion in these public institutions.
People’s News Monitoring Service.
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