Despite substantial government support in the form of loans, subsidies, and extensive investments, the financial health of Public Enterprises remains precarious. Over the last five years, loss-making public enterprises have witnessed an astonishing 6361.5% increase in losses reaching Rs 41.48 billion in 2021/22, while profit-making companies have experienced a 2.4% decrease in profits even as their numbers expand reaching Rs 43 billion in the same year.

The establishment of public enterprises, both on a global scale and within the unique context of Nepal, has been a pivotal chapter in the annals of economic development. In the post-World War II era, a surge of state-owned enterprises (SOEs) emerged worldwide, driven by a myriad of motivations and expectations to address market failure.

Despite having the grand portfolios, the state-owned corporations assume almost no responsibility toward the general public. They should internalize in practice the principle of accountability, independence, integrity, transparency and professionalism by conducting their financial audits on time, if good governance is to be instilled in these public institutions.

KATHMANDU, June 1: The Government of Nepal has announced plans to reoperate the public enterprises (PEs) which remain shut for an extended period of time without doing any homework. While most of the government-owned industries are at a loss, Finance Minister Janardan Sharma announced plans to resume the operation of nine closed industries while presenting the budget for the Fiscal Year 2022/23.

KATHMANDU, May 27: The government’s revenue from the dividend of public enterprises in the fiscal year 2018/19 declined by 4.28% to Rs 9.47 billion, compared to the amount in 2017/18.