A total of 27 public enterprises recorded profits in the fiscal year 2024/25, while 16 remained in loss, according to the annual review of public enterprises released by the Ministry of Finance. The report also noted that two enterprises failed to submit their financial details.
The combined net profit of profit-making enterprises rose by 10.58 percent compared to the previous fiscal year, reaching Rs 48.89 billion. Meanwhile, the total net loss of loss-making enterprises declined slightly by 4.14 percent to Rs 3.80 billion.
The report attributed the overall improvement in profitability mainly to strong earnings growth by Nepal Oil Corporation and three commercial banks.
Overall, public enterprises posted a net profit of Rs 45.08 billion in FY 2024/25, marking a 12.03 percent increase from Rs 40.24 billion in the previous year.
Although Janakpur Cigarette Factory Ltd. has remained closed, the company continues to generate revenue through rent collected from its land and buildings.
Among the loss-making enterprises, Nepal Orind Magnesite Pvt. Ltd., Nepal Metals Company Ltd., and Butwal Spinning Mill Ltd. remain shut down, while Dhauwadi Iron Company Ltd. has yet to begin commercial operations. The report stated that these enterprises continue to incur administrative expenses despite the absence of business activities, contributing to ongoing losses.
According to the Public Debt Management Office, the government’s total investment in public enterprises increased by 13.44 percent to Rs 798.56 billion by the end of FY 2024/25, compared to Rs 703.93 billion a year earlier.
Equity investment grew by 1.48 percent to Rs 370.25 billion, while loan investment surged by 26.32 percent to Rs 428.31 billion. Of the total loan investment, 81.73 percent is concentrated in the Nepal Electricity Authority.
The net worth of public enterprises reached Rs 1.073 trillion, representing a year-on-year increase of 3.89 percent.
Similarly, the total income of public enterprises increased by 0.67 percent to Rs 721.14 billion, equivalent to 11.8 percent of the country’s GDP. Operating income also edged up by 0.66 percent to Rs 672.40 billion during the fiscal year.
