Kathmandu, Jan. 22: If Nepal fails to take strong measures to re-start the privatisation process, the problem in the economy will deepen in the next seven eight years. Privatisation of Public Enterprises (PEs) is not a panacea for all economic intricacies; it is one of the best alternatives to accelerate economic growth in the country, remarked policy makers, bureaucrats, politicians and experts here today.

Dwelling upon the policy papers on State Owned Enterprises Reform and Private sector Development, they noted that the privatisation of the PEs should be carried out by reviewing the performance of privatised enterprises.

They also pointed out the need for strengthening entrepreneurship in the private sector for faster economic growth. Besides, focus should be zeroed in on implementation of plans and policies; they said adding "regulatory mechanism is too weak."

Speaking at the pre- consultative meeting of the National Development Forum (NDF) -2002 to be held in the country for the first time, speakers echoed their voice to expedite the privatisation of public enterprises to reduce the burden in the national economy.

Presenting the policy paper on Private Sector Development, Secretary at the Ministry of Industry, Commerce and Supplies Bhanu Prasad Acharya said that the private sector has been taken as an engine of economic growth. The reform measures introduced in the beginning of 1990s have contributed a lot to accelerate economic growth.

The recent policy and other initiatives undertaken to create an enabling environment for increased private sector involvement in the country's economy included reforms in industrial policy and relevant legislation, adoption of transparent procedures for granting permission to set up industrial units, adoption of liberal sectoral policies in consonance with overall economic policy and establishment of institutions supportive to the private initiatives, Secretary Acharya said. Various reforms have been initiated to improve the quality of services in tax administration, he noted.

Secretary at the Ministry of Finance Bimal Prasad Koirala said that the PEs play a dominant role in the Nepalese economy. Nepal's privatisation programme for PEs began with the objectives of reducing the role of government in business-related activities and enhancing private sector participation in the economy and attracting private shy capital in business ventures.

The poor performance of PEs can be ascribed to the lack of commercial orientation, poor management, inadequate autonomy, poor accounting and accountability over staffing with inappropriate skill and negligence, Secretary Koirala noted.

He further said that the public sector reform includes infusion of new technology and new management, right sizing of employees with appropriate skill.

Commenting the policy papers Dr. Shankar Raj Sharma, member of the National Planning Commission (NPC) stressed the need for reviewing the modalities of the privatisation in the past. Dr. Sharma while speaking about the papers said that simplification of contractual agreement in the privatisation of PEs.

Dr. Yuba Raj Khatiwada, an economist and President of Management Association of Nepal (MAN) underlined the need for maintaining striking balance between public and private sector to enhance capacity. However, enhancement of capacity is not possible without developing entrepreneurship in the private sector.

The government should give priority to enhance capacity of the private sector said Ajit Narayan Singh Thapa.

Jhala Nath Khanal, leader of the Communist Party of Nepal Unified Marxist Leninist (CPN-UML) noted that vision for national development was vital for the success of privatisation. "We should go for soul search as to why the privatisation of the PEs has failed to yield a desired result."

Laxman Basnet, president of the National Trade Union Congress expressed the views of introducing reform measures.

First vice president of the Federation of the Nepalese Chambers of Commerce and Industry (FNCCI) demanded private participation.

The programme was co-chaired by Tanka Rai and Smriti Narayan Chaudhary.

Earlier Dr. Nirmal Pandey, member of the NPC, Mukunda Prasad Aryal Secretary at the Ministry of General Administration and Uday Raj Soti, Secretary at the Ministry of Local Development presented their policy papers on Civil Society Partnerships, Civil Service Reform and Decentralisation.

The legal frameworks have made all the provisions of the Act more effective in implementation of decentralisation, said Secretary Udaya Soti at the pre-consultation meeting today. Similarly Secretary Mukund P Aryal said that the reform would help the government to achieve the broader goal of creating a civil service that is result and people oriented and gender ?responsive thereby resulting in enhanced economic growth and poverty reduction.

NPC member Dr. Nirmal Pandey spoke about the role of civil society Partnership.

Commenting on the papers MP Rajendra Prasad Pandey stressed the need to make decentralisation more effective.

Radha Krishan Mainali, former Minister, noted that the government should make decentralisation more effective.

Chitra Lekha Yadav, Deputy Speaker at the House of Representative had chaired the session.