To give equal opportunities to the private sector and State-Owned Enterprises (SOE), the government would implement a national competition policy, said the Economic Affairs Minister during the National Assembly session last week.
This was in response to the question asked on the government’s strategies to prevent SOEs undermining the private sector by Member of Parliament (MP) of Bomdeling Jamkhar, Dupthob.
MP Dupthob said that the private sector would never be able to compete with government enterprises. ”It is the government’s responsibility to come up with policy, rules and an environment to make it easier for the private sector to do business,”
He questioned the government’s strategies to prevent such a problem. Both the private sector and SOEs are an important component in driving the country’s economy. However, there has been growing concern in the country about the rising competition between SOEs and the private sector. “SOEs eventually undermine the market position of private sector enterprises in many areas,” he said.
The Economic Affairs Minister, Loknath Sharma said that the government does not plan to institute any additional SOE in the country. Other methods such as finding the role of SOEs and coming up with reform agenda are some of the alternatives to tackle the problem. “These issues will soon be solved by implementing the national competition policy,” he said.
He added that government might favor its own enterprises and “for that we have come up with the national competition policy with extensive deliberations going on about Mines and Minerals Bill 2020.”
“The outcome of the Bill will confirm if the concern over the private sector is really genuine or not,” he said.
Kinley Yonten from Thimphu