Public Enterprises refer to government business organization where there is at least 51% of shares of government. Their objective is to provide basic necessities such as water, electricity, and services such as health education etc to the people. Those are the duties of a welfare state.
Nepal bank limited is established in 1937 is regarded as the first modern public enterprise. There is all together 37 public enterprises in Nepal. The objectives of public enterprises are given below
1) To achieve economic development in balanced and organized manner by providing basics infrastructures.
2) To distribute consumption goods reasonable price by improving its quality.
3) To established large and nonprofit oriented organizations which are beyond the capacity of private sector.
4) To help generate national revenue.
5) To earn foreign exchange.
6) To generate the employment opportunities.
7) To obtain economic, political and social objectives of the nation by mobilizing available capital and labor resources.
The importance of public enterprises is very high in developing countries likes Nepal. The private sector does not have huge resources and does not want to take higher risks. The established of enterprises can help in creating a strong foundation for modern industries economy and help the country in achieving self sufficiency in industrial and technical know how.