KATHMANDU, May 28: Out of all public enterprises in operation, 27 recorded profits, while 16 remained in loss in fiscal year 2024/25, according to the annual review of public enterprises released by the Ministry of Finance.
Two enterprises did not provide financial details, the report stated.
The total net profit of profit-making enterprises increased by 10.58 percent compared to the previous year, reaching Rs 48.89 billion. The total net loss of loss-making enterprises slightly declined by 4.14 percent to Rs. 3.80 billion.
The overall improvement in profitability was largely driven by significant earnings growth in Nepal Oil Corporation and three commercial banks, the report said.
23 public enterprises in profit, 12 in loss; NOC incurs huge be...
Overall, the net profit of public enterprises rose by 12.03 percent to Rs 45.08 billion, compared to Rs. 40.24 billion in the previous year.
Although Janakpur Cigarette Factory Ltd. has remained closed, it continues to generate income through rent from its buildings and land.
Among loss-making entities, Nepal Orind Magnesite Pvt. Ltd., Nepal Metals Company Ltd., and Butwal Spinning Mill Ltd. remain closed, while Dhauwadi Iron Company Ltd. has not started commercial operations. The report notes that administrative expenses continue even in the absence of business activity, contributing to losses.
According to the Public Debt Management Office, the government’s total investment in public enterprises increased by 13.44 percent to Rs. 798.56 billion by the end of FY 2024/25, up from Rs. 703.93 billion in the previous year.
Equity investment rose by 1.48 percent to Rs. 370.25 billion, while loan investment increased by 26.32 percent to Rs. 428.31 billion. About 81.73 percent of total loan investment is in the Nepal Electricity Authority.
The net worth of public enterprises reached Rs 1.073 trillion, a 3.89 percent increase year-on-year.
Total income of public enterprises increased by 0.67 percent to Rs 721.14 billion, accounting for 11.8 percent of GDP.
Operating income also rose slightly by 0.66 percent to Rs 672.40 billion in FY 2024/25.
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