Profits of public enterprises increase noticeably

Kathmandu, May 27: The net profit of the government-owned public enterprises has increased significantly in the fiscal year 2022/23.

According to the annual report of the Public Enterprises for the fiscal year 2022/23 published by Finance Minister Barsaman Pun Sunday, the net profit of public enterprises increased by 3,046.20 per cent to Rs. 48.51 billion in the fiscal year 2022/23. 

The public enterprises earned a net profit of Rs. 1.5 billion in the fiscal year 2021/22.

The reason for the increase in overall net profit of the public enterprises is the high rate of profit of Nepal Oil Corporation.

In the previous fiscal year, the Corporation incurred a loss of Rs. 38.17 billion, but it earned a profit of Rs. 11.72 billion in the fiscal year 2022/23.

During the review period, the total operating income of the public enterprises has increased by 14.87 per cent to Rs. 661 billion in the fiscal year 2022/23. The total operating income of the public enterprises was Rs. 575.43 billion in 2021/22.

Out of the existing 44 public enterprises, 26 corporations have been able to make a profit, three corporations have zero turnovers and 15 corporations have incurred losses.

The net profit of 25 companies operating at a profit increased by 981.40 per cent in the fiscal year 2022/23 while the net loss of 15 companies operating at a loss increased by 2.81 per cent in the last fiscal year. 

Out of the 18 privatised institutes, 10 are found to be profitable.

The report said that the administration cost of the public enterprises has increased by 23.79 per cent to Rs. 43.90 billion. In FY 2022/23, the accumulated profit increased by 16.68 per cent to Rs. 61.14 billion. 

According to the report, the most profitable institutions are Nepal Oil Corporation, Nepal Electricity Authority, Nepal Telecom, Citizen Investment Trust and Deposit and Credit Guarantee Fund.

Among the institutions that bear the most losses are Nepal Airlines Corporation, Nepal Drinking Water Corporation, Dairy Development Corporation, Udayapur Cement and Nepal Television.

Govt. investment reaches Rs. 661 billion

The net worth of the public enterprises has increased by 29 per cent and reached Rs. 982.13 billion.

During the review period, the net worth of 32 companies was positive while those of 10 was negative.

The total investment of the government in the corporation increased by 8.62 per cent to Rs. 661.1 billion during the review period.

Share investment increased by 9.19 per cent to Rs. 379.72 billion while credit investment decreased by 7.86 per cent to Rs. 281.38 billion.

In the revised GDP of Rs. 5,381.34 billion in FY 2022/23, the ratio of total operating income of public enterprises is 12.28 per cent. This ratio is higher than the previous fiscal year’s.

The paid-up capital of public institutions increased by 10.62 per cent and reached Rs. 412.12 billion in the last fiscal year 2022/23. Of that, the capital investment of the government is 92.13 per cent.

The public enterprises have deposited income tax Rs. 17.39 billion in the reserve funds of the government in the fiscal year 2022/23. 

The contribution of public enterprise to the total income tax generated by the government is 6.97 per cent in the fiscal year 2022/23. 

The contribution of public enterprise to the total income tax generated by the government was 5.59 per cent in the fiscal year 2021/22.

About 32,180 employees are directly involved in the public enterprises by the fiscal year 2022/23.