PERFORMANCE OF PUBLIC ENTERPRISES AND ITS MANAGEMENT CHALLENGES IN NEPAL

Public Enterprises are created in both developed and developing countries of the world to accelerate economic and social development. Yet, increasing evidence indicates that most of public enterprises either do not contribute strongly to national development or do not supply their public goods and service functionally effectively and efficiently leading to policy maker and academician engaging in continuing debate over whether or not public enterprises are viable to economic and social development and why so many of them have failed to deliver the services for which they were created and how their performance can be improve by efficient service delivery and sustainable national development. Continuous performance is the objective of any organization because only through performance, organizations are able to grow and progress. These issues are more crucial. In this context this article explores the contribution and performance level PEs and discusses its major management challenges. For the discussion, about Growth of PEs operating status of PEs, financial status of PEs, total investment Share and loan investment, dividend received, contribution on GDP, Revenue, Shareholder s Fund/net-worth, working capital, administrative and unfunded liabilities of PEs on the based on PBM theory assumptions, Secondary data are obtain from Ministry of Finances and National planning commission and some of the key personnel of the PEs are also interviewed. The finding shows that there are still very important roles of PEs for service delivery system, social and economic development, the roles of income Tax, value added tax and not taxable-tax collection and social welfare, Employees generation, curtailing, syndicate and market control, the role of crisis management and emergency situation etc., which however, also facing problem of lack of smart management, lack of proper attention of Government.