Public enterprises in Nepal recorded a 12.88% year-on-year decline in net profit in fiscal year 2023/24, falling to Rs 42.62 billion, according to the Annual Status Review Report of Public Enterprises, 2082 presented by Finance Minister Bishnu Paudel on Thursday, May 29.
Of the 45 public enterprises operating across various sectors, 28 posted profits, 15 incurred losses, and two remained non-operational in the review year, Paudel informed the House of Representatives. Among these, 20 are fully government-owned, while the state holds a majority stake in the remaining enterprises.
Despite a large number of profitable entities, their collective net profit dropped by 11.50%, while the net losses of underperforming enterprises widened by 8.65%.
The government’s revenue from dividends also took a sharp hit, decreasing from Rs 13.75 billion in FY 2022/23 to Rs 8.83 billion in FY 2023/24. The dividend-to-equity investment ratio for the year stood at just 2.16%.
Meanwhile, the total assets of public enterprises increased by 2.2%, reaching Rs 2.91 trillion. Government investment in these entities grew by 5.86% during the review period to Rs 703.63 billion—comprising Rs 364.86 billion in equity and Rs 339.07 billion in loans.
However, this asset growth was not mirrored in earnings. Total operating income dipped by 0.22% from the previous fiscal year, settling at Rs 660 billion.
