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Class : 11
Unit : Economics


What are the importance of public enterprises?

Ans : The importance of public enterprises are as follow: i) Establishment of basic industries:- Public enterprises invest a large amount of money in establishing large scale industries. They take risk to establish basic industries in which private sectors hesitate due to high risk. ii) Planned development:- The public enterprises are playing important role for the planned economic development of the nation. It helps to maximize the volume of production and utilization of resources. The proper use of national resources supports for economic development. iii) Balance development:- The main objective of establishment of public enterprise in different regions is the balanced economic development. All the region of Nepal by supported for proper utilization of resources of those regions. iv) Creation of employment:- Government can create employment opportunities by establishing public enterprise in various regions of the country. Therefore people can get employment opportunities in the enterprises according to their qualification, experience and knowledge. v) Development of infrastructure:- The development of infrastructure is very important for the promotion of trade in the country. So that public enterprises have more contribution for the development of infrastructure facilities. Search as communication, electricity, Bank Ltd., transportation, etc. vi) Source of government revenue:- Public enterprises pays various taxes to the government. Such as custom duty, import duty, export tax etc. Government can utilize such revenue for infrastructure development of the country.
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