Economy and Business

Public enterprises in Nepal struggle with losses


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A recent annual review report on the status of public enterprises, presented in parliament, revealed that fifteen state-owned entities, including the Nepal Airlines Corporation (NAC), have been grappling with financial losses for multiple years. Among the 44 public enterprises assessed until the fiscal year 2079-80 BS (2022-23), 26 were profitable, 15 incurred losses, and three had no business transactions.

In the fiscal year 2079-80 BS (2022-23), the NAC recorded the highest loss among all public enterprises, followed by the Nepal Water Supply Corporation, Daily Development Corporation (DDC), Udaypur Cement Industry Ltd, and Nepal Television. Despite a reduction in net loss compared to the previous fiscal year, the NAC remains financially challenged, with reasons including loan repayment difficulties, high administrative costs, operational inefficiencies, and flight delays.

Several state-owned enterprises, such as the Nepal Water Supply Corporation and Nepal Television, have been incurring losses since the fiscal year 2075-76 BS, while others like the Udaypur Cement Industry and DDC have reported losses since 2076-77 BS and 2077-78 BS, respectively. These entities have struggled with significant net losses and accumulated losses over the years, impacting their financial sustainability and operational viability.

Despite some exceptions, including the Nepal Oil Corporation Limited, which reported significant net profits, many state-owned enterprises face challenges in managing their finances and sustaining profitability. Accumulated losses have become a pressing issue for several entities, indicating systemic challenges that require comprehensive reform and strategic intervention to ensure their long-term viability and contribution to the national economy.


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