Kathmandu, May 29: According to the government’s recently released report, Annual Status Review of Public Entities, 2082 BS, out of the 45 public entities currently operating, 28 are in profit, 15 are running at a loss, and 2 are closed. The report shows that despite significant government investment in public institutions, their returns and the benefits to the state have been continuously weakening.
“In the fiscal year 2080/81 BS, internal and external factors affected the overall performance of public institutions. In the fiscal year 2079/80 BS, the total operating income of the institutions was Rs 661 Arba, which decreased by 0.22 percent in 2080/81 to Rs 660 Arba,” the review report states.
The total net profit of public institutions was Rs 48 Arba in 2079/80, which decreased by 12.88 percent in 2080/81 to Rs 42 Arba. This decline in profit was mainly due to the reduced profits of Nepal Oil Corporation Limited and Nepal Telecom Company Limited, which have relatively high turnover and profit figures.
“Nepal Oil Corporation Limited, which made a net profit of Rs 11 Arba in 2079/80, earned Rs 9 Arba in 2080/81, a decrease of Rs 2 Arba 16 Crore compared to the previous fiscal year,” the annual progress report states.
Similarly, Nepal Telecom’s net profit decreased from Rs 7 Arba 92 Crore in 2079/80 to Rs 6 Arba 23 Crore in 2080/81.
The accumulated total profit of public institutions up to fiscal year 2080/81 reached Rs 92 Arba 72 Crore, which is 41.03 percent higher than Rs 65 Arba 74 Crore in the previous fiscal year 2079/80.
According to the report, although Janakpur Cigarette Factory Limited has closed, it has generated income from rent on its buildings and land. Similarly, Nepal Infrastructure Construction Company Limited earned more from interest than from its core activities.
Among the loss-making institutions, Nepal Oriented Magnesite Private Limited and Butwal Spinning Factory Limited are closed, while Dhauladi Iron Company Limited has not resumed commercial operations. Despite the lack of business operations, these institutions continue to incur regular administrative expenses, resulting in losses.
In fiscal year 2080/81, the net profit of institutions operating at a profit declined by 11.50 percent compared to the previous year, while the net loss of loss-making institutions increased by 8.65 percent compared to the previous year. Although the total operating expenses of public institutions decreased by 3.03 percent compared to the previous review period, administrative expenses (including staff costs) increased by 0.55 percent.
In fiscal year 2080/81, the total shareholders’ equity (net worth) reached Rs 10 Kharba 37 Arba, an increase of 4.76 percent from Rs 9 Kharba 90 Arba in 2079/80.
According to the Public Debt Management Office, the Nepal government’s total investment increased by 5.86 percent from Rs 6 Kharba 64 Arba in 2079/80 to Rs 7 Kharba 3 Arba in 2080/81. #nepal #public_entity #finance
