15 public enterprises in red

KATHMANDU, MAY 27: Out of 44 public enterprises (PEs) operating in Nepal, 15 suffered financial losses in the last fiscal year. 2022/23 The Ministry of Finance presented the Annual Status Review of Public Enterprises to parliament yesterday, revealed this. In contrast, 26 institutions accrued profits, and three had zero turnover. The total operating income for these institutions is Rs 661.01 billion.

The net profit of PEs increased to  Rs 48.51 billion last fiscal compared to the previous fiscal year (FY) 2021/22. A significant contributor to this increase is the Nepal Oil Corporation (NOC), which made a profit of Rs 11.72 billion last year, after suffering a loss of Rs 38.17 billion the previous year.

Likewise, government investment in public institutions rose by 8.62 percent, reaching Rs 661 billion compared to the previous fiscal year. This investment includes Rs 379 billion in shares and Rs 281 billion in loans. Public institutions have provided employment to a total of 32,180 people, which has contributed to a profit increase, accumulating to Rs 61.14 billion.

Among the 18 privatized institutions, 10 are profitable. Statistics from the Ministry of Finance indicate that public institutions incur administrative expenses of Rs 43.10 billion annually.

As of last year, 20 institutions have been audited. The most profitable include NOC, Nepal Electricity Authority, Nepal Telecommunications Authority, Citizen Investment Trust, and Deposit and Credit Guarantee Fund.

On the other hand, the Civil Aviation Authority of Nepal, Nepal Water Supply Corporation, Dairy Development Corporation, Udayapur Cement Industries Limited, and Nepal Television experienced the maximum losses.