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28 Out of 45 Public Enterprises in Profit, 15 in Loss, 2 Shut Down – Dividend Collection Declines

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NEPSE trading

28 Out of 45 Public Enterprises in Profit, 15 in Loss, 2 Shut Down – Dividend Collection Declines

As of the current fiscal year, a total of 45 public enterprises are operating across Nepal in various sectors including industrial, commercial, service, social, utility, and financial fields. Of these, 20 are fully government-owned, while 25 have majority government ownership.

According to the Economic Survey for FY 2080/81, the Government of Nepal’s total investment in public enterprises increased by 5.86%, reaching NPR 703.93 billion. This includes NPR 364.86 billion in equity investment and NPR 339.07 billion in loans.

The total operating income of these institutions stood at NPR 660.15 billion, a 0.22% decrease compared to FY 2079/80. Operating income accounted for 11.57% of the country’s GDP.

Profit and Loss Overview

  • 28 enterprises recorded profits

  • 15 were in loss

  • 2 remained non-operational

The net profit from public enterprises reached NPR 42.62 billion, which is a 12.88% decrease compared to the previous review period. Net losses from loss-making institutions stood at NPR 3.63 billion. The net profit of profitable enterprises declined by 11.50%, while losses increased by 8.65%.

Dividend Collection Drops

The Government of Nepal received NPR 13.75 billion in dividends in FY 2079/80, but this dropped to NPR 8.83 billion in FY 2080/81. The dividend-to-equity ratio for FY 2080/81 stood at just 2.4%.

Key Sectors Contributing Dividends

  • Only 7 public enterprises provided dividends this year.

  • Dividends were received only from the utility, service, and financial sectors, with no contribution from the industrial, social, or commercial sectors for the second consecutive year.

  • Among all contributors, Nepal Telecom (NTC) alone accounted for 74.56% of the total dividend.

  • The financial sector contributed NPR 1.90 billion, while the service sector contributed only NPR 342.2 million.

The trend highlights the growing concern over the efficiency, transparency, and sustainability of Nepal’s public enterprises, particularly in the industrial and commercial sectors.

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