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Nepal's Public Enterprises: 27 Profitable, 16 Incurring Losses, Ministry of Finance Report

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A recent report from Nepal's Ministry of Finance reveals that out of 45 public enterprises (PEs), 27 were profitable in the fiscal year 2024/25, while 16 incurred losses and two have been shut down. Despite an overall increase in net profits by 12.03%, deep-seated structural and managerial weaknesses continue to impact these state-owned entities.

• The combined net profit of PEs reached Rs 45.08 billion, with profit-making enterprises earning Rs 48.89 billion and loss-making ones narrowing their total losses to Rs 3.80 billion.
• Key contributors to profits include Nepal Electricity Authority, Nepal Telecom, and Civil Aviation Authority of Nepal, with the utilities sector showing the strongest performance.
• Nepal Airlines Corporation is identified as the most financially troubled PE, holding accumulated losses of Rs 18.90 billion and the highest negative net worth.
• The government's investment in PEs has increased, but dividend returns have remained modest, with the government receiving Rs 8.37 billion in dividends.
• The report highlights ongoing issues of weak management, financial indiscipline, and structural crises affecting the operational efficiency of many PEs.