The state-owned Nepal Aushdhi Limited has raised serious concerns about its sustainability, citing lack of government support and policy clarity.

Despite being under state ownership, the company says government agencies are not prioritizing its products. According to the state-run news agency RSS, the company officials claim they have not been allocated a regular operating budget. As a result, the company has been forced to rent out its own buildings to generate income in order to manage basic expenses like staff salaries.

General Manager Kailash Kumar Paneru told a delegation of the parliamentary committee that although the company aims to increase annual production and sales by 10 percent, it is struggling to operate without a clear procurement policy that supports domestic manufacturers.

“If the government itself does not purchase medicines produced by its own company, how are we supposed to survive?” RSS quoted Paneru as saying. Paneru stressed the need for a mandatory provision requiring all three tiers of government to prioritize Nepal Aushdhi Limited’s medicines in their procurement processes.

The company currently produces 11 types of medicines, including paracetamol and oral rehydration salts, and plans to expand this to 20 products in the upcoming fiscal year.

During an on-site inspection by members of the Industry, Commerce, Labour and Consumer Welfare Committee under the House of Representatives on Thursday, lawmakers acknowledged the gravity of the company's challenges. Committee Chairperson Abdul Khan termed it “regrettable” that government institutions have failed to purchase medicines from a state-owned enterprise. He assured that the committee would raise the issue in Parliament and seek a policy solution to safeguard the company’s future.

According to RSS, Yagya Prasad Neupane, Chairperson of Nepal Aushdhi Limited, said the company is moving in a positive direction in terms of production quality despite the challenges. He noted that the World Health Organization has recognized the company's manufacturing standards, and that plans are in place to scale up production to 20 types of medicines in the near future.

Meanwhile, Paneru added that the company has already recorded sales worth Rs 50 million in the current fiscal year, compared to Rs 47.89 million in the previous year.

The company established in 2029 BS as a government entity once used to manufacture 120 types of medicines. But over the course of time, it was closed in 2062 BS and revived in 2074 BS with the production of Cetamol.