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It’s time to shut down

The Himalayan Times
22 June 2017

It’s time to shut down

It was encouraging news that the government is finally on the course of shutting down the National Trading Ltd (NTL) after realizing that the NTL is eating up people’s tax paid money in the name of meeting its operational costs which was supposed to be covered from its profit margin “Govt on course to shut National Trading Ltd (THT, July 20, Page 1) rather than government pouring in it billions of rupees to keep it afloat. It was running on a huge loss for many years due to bad management and institutionalised corruption. There was no proper supervision and monitoring system from the government to ensure that the NTL was properly managed and run in a business-like manner.

It was not surprising to know that the NTL has outstanding loans amounting to 1.4 billion rupees that it owes to the government and financial institutions. Why did the government have to wait for so many years to make decision of its closure? Likewise, there are other government owned corporations which have been running monetarily under huge loss. Nepal Food Corporation, Agriculture Inputs Company and Timber Corporation among others are the white elephants of the government which should have been closed a long time ago. It is known that facts these public enterprises remained to be the cadres recruiting centres of political parties. It could be the reasons for the previous governments not wanting to shut down these enterprises.

It seems that the time has come for the government under the changed context to either completely close down these enterprises or merge into one to act as the national supply company with redefined mechanism as mentioned in the 2016/17 annual budget of the government. Even doing so, the government has to rethink whether merging into one will serve its purpose and the people since there are many private companies which are engaged in export-import business fulfilling the needs of the users. 

Rai Biren Bangdel

Maharajgunj, Kathmandu

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