Some public enterprises (PEs) that are not in operation at the moment have asked the government to release loans to bear their administrative costs.
At least half a dozen PEs have approached the Finance Ministry seeking loans, said joint secretary at the ministry Khum Raj Punjali. Janakpur Cigarette Factory has asked ministry to release Rs 56.6 million to distribute salaries, he said, adding employees have not received salaries from July. Similarly, Nepal Drugs Limited (NDL) has also approached the ministry asking it to release a loan of Rs 30 million, he informed. NDL has said that it is in dire need of the amount to distribute salaries to its employees and to carry out other administrative work.The government provided Rs 160 million to three struggling public enterprises (PEs) - Gorakhkali Rubber Udyog, Nepal Drugs Limited (NDL) and Janakpur Cigarette Factory (JCF). Most of the public enterprises have been suffering from mismanagement and political interference since the 1990s. Political parties have used the PEs to recruit their own cadres and misappropriate government funds.
