Govt-owned companies in Nepal: 26 in loss, three sans business

KATHMANDU: Among the 44 government owned companies operating in Nepal, 26 have been found to be incurring losses.

The annual review of public institutions presented in parliament by the Ministry of Finance on Sunday, 26 companies were found to be in the red, while 15 were seen operating at a deficit in the fiscal year 2079/80.

The business of three companies remains at zero.

The total operational revenue of the government owned institutions amounts to Rs. 661 billion.

Compared to the fiscal year 2078/79, the net profit of government owned companies has also increased.

In this fiscal year, the net profit of the companies has reached Rs. 485.1 billion.

The main reason for the significant increase in revenue is attributed to the Nepal Oil Corporation, which has shown a profit after being in a deficit of Rs. 38.17 billion last year, now recording a profit of Rs. 11.72 billion.

The total government investment in public institutions has increased by 8.62 percent to reach Rs. 661 billion.

Out of the 18 privatized institutions, 10 are reported to be in profit.

The administrative expenses of public institutions amount to Rs. 43.90 billion annually, according to data from the Ministry of Finance.

Until the last fiscal year, 20 institutions had undergone financial audits.

Among these, the institutions with the highest profits are Nepal Oil Corporation, Nepal Electricity Authority, Nepal Telecommunications Corporation, Citizens Investment Fund, and the Deposit and Credit Guarantee Fund.

Institutions prone to significant losses include Nepal Airlines Corporation, Nepal Water Supply Corporation, Dairy Development Corporation, Udayapur Cement, and Nepal Television.