Fiscal Nepal
First Business News Portal in English from Nepal
Swarnim wagle parliament
KATHMANDU: Nepal’s public enterprise sector continues to show mixed financial performance, with 27 out of 45 public institutions operating at a profit as of fiscal year 2081/82, according to the Economic Survey 2082/83 presented by Finance Minister Dr. Swarnim Waglé.
The report highlights that while a majority of public enterprises remain profitable, a significant number are still struggling with losses and operational inefficiencies.
According to the Economic Survey:
In comparison, the previous fiscal year recorded 28 profitable, 15 loss-making, and 2 non-operational institutions, indicating a slight decline in profitability and a marginal rise in financially distressed entities.
The survey further reveals the scale of government exposure in public enterprises. By the end of Asar 2082, the Government of Nepal’s total investment in these institutions stood at:
This brings the total public investment to NPR 798.56 billion (approximately NPR 7.98 trillion) when combining both equity and loans.
The data suggests that despite significant state investment, a notable portion of public enterprises continues to underperform, raising concerns over efficiency, governance, and return on public funds.
Loss-making entities not only strain government finances but also reflect structural issues such as weak management, outdated operational models, and limited competitiveness in liberalized markets.
The findings from the Economic Survey are expected to intensify calls for public enterprise reform, including:
Economists argue that improving the performance of public enterprises is crucial for reducing fiscal burden and increasing the productivity of state assets.
With nearly NPR 8 trillion tied up in public institutions, experts say Nepal’s challenge lies in ensuring that public enterprises become financially sustainable and contribute effectively to national economic growth.
The government is expected to incorporate public enterprise reform measures into upcoming fiscal policy discussions, particularly in the context of improving efficiency and reducing financial losses.
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