Majority of Nepal’s Public Institutions Profitable, Reports Ministry of Finance

May 27, 2024, 09:23:12 AM |

KATHMANDU: Out of 44 public institutions operating in Nepal, 26 have been found to be profitable, according to the Annual Status Review of Public Enterprises presented to parliament by the Ministry of Finance on Sunday.

The review revealed that in the fiscal year (FY) 2022/23, 26 institutions recorded profits, 15 incurred losses, and three had zero turnover. The total operating income of these institutions amounted to Rs 661.01 billion.

Comparing to FY 2021/22, the net profit of public institutions has increased significantly, reaching Rs 48.51 billion this year. A key contributor to this positive shift has been the Nepal Oil Corporation (NOC), which reported a profit of Rs 11.72 billion last year after a loss of Rs 38.17 billion in the previous year.

The government’s total investment in public institutions has also seen an 8.62 percent rise, amounting to Rs 661 billion, which includes Rs 379 billion in share investments and Rs 281 billion in loan investments. These institutions have collectively provided employment to 32,180 people, contributing to a profit accumulation of Rs 61.14 billion.

Among the 18 privatized institutions, 10 have been reported as profitable. The Ministry of Finance’s statistics also show that the administrative expenses of public institutions totaled Rs 43.10 billion over the year.

The audit of 20 institutions last year identified the most profitable entities as the NOC, Nepal Electricity Authority, Nepal Telecommunications Authority, Citizen Investment Trust, and Deposit and Credit Guarantee Fund.

Conversely, the Civil Aviation Authority of Nepal, Nepal Water Supply Corporation, Dairy Development Corporation, Udayapur Cement Industries Limited, and Nepal Television were among the institutions with the highest losses.

This report highlights the mixed financial performance of Nepal’s public sector, emphasizing the significant improvements in profitability for some institutions while also pointing out areas needing attention to mitigate losses.

Fiscal Nepal |

Monday May 27, 2024, 09:23:12 AM |