Himal Hub /Nepal’s public enterprises are facing mounting challenges, with weak financial performance and governance issues raising serious concerns.
According to the latest economic status report released by the Ministry of Finance, government investment in public enterprises has continued to rise, but the returns remain far below expectations.
As of mid-March 2026 (Falgun 2082), a total of 45 public enterprises are in operation—20 fully owned by the government and 25 with majority government ownership. Among them, 28 are running in profit, 15 are incurring losses, and 2 have already shut down.
By mid-July 2024 (Asar 2081), the government’s total investment in these enterprises had reached Rs 703.94 billion. This includes Rs 364.86 billion in equity investment and Rs 339.08 billion in loans.
Despite such massive investment, returns have been strikingly low. In the fiscal year 2023/24 (2080/81), the government received only Rs 8.84 billion in dividends—just 2.4 percent of its total equity investment.
The report also highlights serious governance concerns alongside poor financial health. In some cases, even regular audits have not been conducted, making it difficult to determine the actual accumulated losses and potential liabilities of these institutions, the ministry said.
