The National Competition Policy will help give equal opportunities to the Private sector and State-Owned Enterprises (SOE) says the Economic Affairs Minister during the National Assembly session today. This was in response to the question asked on the government’s strategies to prevent SOEs undermining private sectors.
Both the Private sector and SOEs are the vital component in driving the country’s economy. However, in recent times, there has been growing concern in the country about the mounting competition between SOEs and Private Sectors. SOEs eventually undermine the market position of private sector enterprises in many areas.
To this issue, Member of Parliament (MP) of Bomdeling Jamkhar Dupthob asked the government’s strategies to prevent such problem.
“The government’s responsibility is to not come with such enterprises. The opportunity should be given to the private sectors. We all know that private sectors would never be able to compete with the government’s enterprises. In fact, it is the government’s responsibility to come up with policy, rules and environment to make it easier for the private sector to do business,” said Dupthob, the MP of Bomdeling Jamkhar.
In response, the Economic Affairs Minister said that the government do not plan to institute another SOE. Other methods such as studying the role of SOEs and coming up with reform agenda are few of the ways. He added that the National Competition Policy which will be implemented soon will help solve this.
“We are looking whether we can merge SOEs that are there right now. Aside from that, there will soon be a national competition policy to provide a level playing field. The government might favour its own enterprises. That’s why we have come up with the national competition policy,” said Loknath Sharma, the Economic Affairs Minister.
And with extensive deliberations going on about Mines and Minerals Bill 2020, the Minister also added that the outcome of the Bill will confirm if the concern over the private sector is really genuine or not.
“As the Economic Affairs Minister, it is not just my responsibility. Action speaks louder than words. And to this, the outcome from Mines and Minerals Bill 2020 will say a lot about this. We always insist on providing opportunities to private but if we decide that the government should do this business as well, it contradicts our words. Are we really concerned? This Bill will show,” Lyonpo added.
As per the state enterprises annual report 2018, there are 38 SOEs in the country. 17 companies are wholly owned through direct shareholdings and 2 as significant majority shareholding by the Ministry of Finance and 19 are held through Druk Holding and Investments.
Samten Dolkar
