KATHMANDU, May, 26: Out of 44 public institutions operating in Nepal, only 26 institutions have been found to be profitable.
According to the Annual Status Review of Public Enterprises presented to parliament by the Ministry of Finance on Sunday, 26 institutions were seen to be profitable in the fiscal year (FY) 2022/23, 15 institutes were in loss while the turnover of three institutes was zero. The total operating income of these institutes is Rs 661.01 billion.
Compared to the fiscal year (FY) 2021/22, the net profit of public institutions has also increased. It is seen that the net profit of the institutes has reached Rs 48.51 billion this year. Nepal Oil Corporation (NOC) plays a crucial role in increasing the income rate of Nepal. NOC made a profit of Rs 11.72 billion last year, while it was at a loss of Rs 38.17 billion the previous year.
The government’s total investment in public institutions has increased by 8.62 percent to Rs 661 billion compared to the previous fiscal year. It has Rs 379 billion share investment and Rs 281 billion loan investment in public institutes. It has been found that the public institutes have provided employment to a total of 32,180 people which has led to the increase in profit of the public institutions accumulating to Rs 61.14 billion.
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Out of the 18 privatized institutes, 10 are found to be profitable. According to the statistics of the Ministry of Finance, the administrative expenses of public institutions are Rs 43.10 billion in a year.
Till last year, 20 institutes have been audited and the most profitable institutions are NOC, Nepal Electricity Authority, Nepal Telecommunications Authority, Citizen Investment Trust, and Deposit and Credit Guarantee Fund.
Likewise, the Civil Aviation Authority of Nepal, Nepal Water Supply Corporation, Dairy Development Corporation, Udayapur Cement Industries Limited and Nepal Television had maximum losses.
