Of the 37 PEs, only five have provided dividend to the government. Nepal Doorsanchar Company Ltd (NDCL), Industrial District Management Ltd, Hydroelectricity Investment and Development Company Ltd, Agricultural Development Bank and Citizen Investment Trust are the five enterprises that have paid dividend to the government.In the last fiscal year, only four PE's -- Nepal Doorsanchar Company Ltd (NDCL), Nepal Stock Exchange Ltd, Industrial District Management Ltd, and Hydroelectricity Investment and Development Company Ltd -- had paid dividend to the government.
The government received Rs 6.61 billion as dividend payment from PEs, down from Rs 6.99 billion that it had received last year.
According to Economic Survey for fiscal year 2014/15, total operating income of 37 state-owned enterprises increased by 15.48 percent to Rs 257.81 billion at the end of 2013/14, up from Rs 223.26 billion in 2012/13.
Although rising in operating income suggests that efficiency of PEs have improved, it alone cannot measure the overall efficiency as 15 of the 37 PEs are operating in total loss. Four PEs -- Nepal Engineering Consultancy Service Center Ltd, National Construction Company Nepal Ltd, Janakpur Cigarette Factory Ltd, and National Housing Company Ltd -- have not submitted any financial data to the government.
Profit of PEs fell this year mainly due to increase in loss of Nepal Oil Corporation (Rs 6.25 billion), Nepal Electricity Authority (NEA) and few other enterprises.
PEs with accumulated profit of more than Rs 1 billion are NDCL (Rs 42.48 billion), Civil Aviation Authority of Nepal (Rs 3.7 billion, Agricultural Development Bank (Rs 1.47 billion) and NIDC Development Bank (Rs 1.36 billion).
According to data obtained from the Financial Comptroller General's Office, the government's shares and loans investments in PEs grew by 7.57 percent and 4.86 percent, respectively, to Rs 115.81 billion and Rs 111.68 billion.
CONTRIBUTION TO REVENUE, GDP
Payment of dividend by PEs to the government in 2014/15 constituted 1.86 percent of total revenue of Rs 356.85 billion mobilized by the government. This is 5.71 percent in ratio to what the government invested on the PEs which is lower than the current interest rates.
Contribution of operating income of PEs to Gross Domestic Product, which was Rs 1,942 billion in 2013/14, was 13.29 percent.
In 2013/14, the government's loan flow to PEs constituted 3.13 percent of total government budget (Rs 517.24 billion). Loan flow to the PEs was 19.05 percent of the total budget for capital expenditure (Rs 85.10 billion).
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