Public Sector

Generally, work accomplished by government is called a public sector. It is extended from central government to houses of public. Public sector is responsible of delivering necessary product and services to people.  For e.g. NTC, NEA, NOC etc. Its main objectives is public service delivery. It is non-profit oriented but it will generated enough revenue to run itself. It is responsible to carry of all public good services hence its area of interest is boundless.


  • Develop policy, Rule, Project, Programs, implement and Monitor development related works
  • Work on getting foreign aid and investment
  • Job creation and public life up-lift.
  • Acquire, develop, use and maintain human resources
  • Effective use of resources and maintain economic discipline
  • Main streaming otherwise marginalized groups, women etc.
  • Invest on infrastructures like Road, water, communication, electricity, irrigation etc.
  • Manage and use resources for sustainable development of the country
  • Address needs, wants & desire of country men


  • Prolonged political instability & transition period
  • Frequent bandh, strike, labour strike, energy crisis etc.
  • Remittance used for consumption and not capital formation
  • High inflation and trade deficit
  • Lack of conducive environment for FDI
  • Increasing unemployment and brain drain
  • Productive youth population going for foreign employment
  • Lack of good governance
  • Unstainable investment on infrastructure
  • Lack of socking capacity of foreign investment & loans


  • End current political instability
  • Attract foreign direct investment
  • Sustainable approach to infrastructure development
  • Emphasis on industrialization and job creation
  • Stop brain drain and retain skilled manpower
  • Coordinate with private sector
  • Work on using locally available resources for development
  • Highest priority should be given to solve current energy
  • Crisis solving this will have a great impact on other existing problems

Private sector

Globalization began in 1980s and after the beginning of the economic liberalization, the role or private sector was acknowledged. Private sector has slowly taken over the work of public sector and are becoming the frontline of development effort. The effort of privatization has increased the role of this sector even more.

  • Privatization Act 2050
  • Constitution of Nepal 2063 on Art 35(2) has accepted the private sector as medium for development
  • Private sector is a profit organization which are regulated and have to operate under given provision and laws.
  • Sole trading, partnership concern and joint-venture company are private sector entities.
  • Private sector has been active after 1990 AD economic liberalization


  • Make national economy sustainable and grow
  • Promote export and earn foreign currency
  • Increase employment opportunity
  • Increase product & production level
  • Optimum use of available resources
  • Invest private sector’s capital, skill, knowledge for development
  • Minimize government’s presence in every sector
  • Make competitive environment to provide quality affordable goods
  • Poverty alleviation
  • Entrepreneurship development
  • Tax and revenue for government.


  • Problems instability and prolonged transition period
  • Lack of conducive environment for investment
  • Strike, bandh, energy crisis, car telling, syndicate etc.
  • Bad relation between employer and employee
  • Donation drive, kidnapping and ransom is rampant
  • Lack of coordination and trust between public & private sector


  • Increase private sector involvement in investment, production, distribution, social development and employment and employment creation
  • Promote private sector investment in big projects
  • Labour policy benefiting both the party is necessary
  • Industrial security is essential
  • Create god environment for investment
  • Increase private sector’s transparency and capacity
  • Encourage private sector by not involving public sector in that matter

Co-operative sector

Cooperative mechanism was developed by Robert Owen. He is British and established a cooperative in 1844. Cooperative operates on mutual help, support and unity. It helps in community development. Its main motto is “Each for all and all for each”. Profit making gets secondary priority in cooperatives. Its main objective is to provide affordable goods.


  • Elective community
  • Focus on economic development
  • Common benefit
  • Democratically run
  • Self-reliant approach
  • Rural development approach


  • Elective and open membership
  • Member participate in economic activities
  • Democratic way of operation
  • Free and self-reliant
  • Education, training and empowerment
  • Cooperative between cooperatives
  • Concern with community problems

Cooperative development in Nepal

  • Cooperative department-2010 BS under Food & Agri. Ministry
  • 1st 5 year plan aimed at establishing 4500 cooperatives
  • Cooperative  Act – 2048
  • National cooperative Board
  • Act 35(2) constitution: The state shall pursue a policy of developing economy of the country through the governmental cooperative and private sectors
  • UN celebrated 2012 as Int’l cooperative year


  • Economic: Disappearing cooperative on the rise, bad financial management
  • Monitoring: Monitoring mechanism not strong. Because of banking nature NRB’s and cooperative departments work area over laps
  • Manpower: lack of manpower in monitoring and manpower to run cooperative efficiently
  • Number Problem: Establishment of too many cooperatives has created throat cut competition and has created survival problem
  • Need to amend cooperative Act.
  • Lacks entrepreneurship and professional leadership


  • Manpower management for effective operation
  • Right sizing existing cooperative sector
  • Amend existing cooperative Act for better adaption to current situation
  • Promote multipurpose cooperatives
  • Effective monitoring & Evaluation of cooperatives
  • Clearly define opening & operation mechanism of cooperatives
  • Promote cooperative forming, cooperative industries, cooperative distribution service, cooperative Baric
  • Working hard on inclusive and fair cooperative mechanism
  • Promote cooperative as a intermediator between public and private sector.