Nepal’s Govt-Owned Companies: 26 in Loss

In a recent revelation, the fiscal health of government-owned enterprises in Nepal has come under scrutiny as data from the Ministry of Finance paints a challenging picture. Among the 44 government-owned companies operating in the country, a staggering 26 have been found to be incurring losses, while an additional 15 are operating at a deficit for the fiscal year 2079/80.

The annual review of public institutions, presented in parliament, highlights the complexities within Nepal’s economic landscape. Despite this, there is a glimmer of hope as compared to the previous fiscal year, with net profits of government-owned companies showing an increase, reaching Rs. 485.1 billion.

One notable success story amidst this backdrop of financial strain is the Nepal Oil Corporation, which has transitioned from a deficit of Rs. 38.17 billion to a profit of Rs. 11.72 billion. This turnaround has significantly contributed to the overall positive trajectory observed in the net profits of government-owned entities.

The total government investment in public institutions has also seen an uptick, rising by 8.62 percent to reach Rs. 661 billion. However, concerns persist as administrative expenses continue to mount, amounting to Rs. 43.90 billion annually.

Notably, out of the 18 privatized institutions, 10 are reported to be operating at a profit, underscoring the potential benefits of privatization in certain sectors. Financial audits remain crucial, with 20 institutions having undergone scrutiny until the last fiscal year.

Despite challenges, institutions such as the Nepal Oil Corporation, Nepal Electricity Authority, Nepal Telecommunications Corporation, Citizens Investment Fund, and the Deposit and Credit Guarantee Fund have emerged as leaders, showcasing resilience amidst economic turbulence. Conversely, entities such as Nepal Airlines Corporation, Nepal Water Supply Corporation, Dairy Development Corporation, Udayapur Cement, and Nepal Television continue to grapple with significant losses.