The state’s business with 45 entities in the name of public corporations is increasing, paid-up capital is increasing, share ownership is decreasing

लगानी न्यूज

१४ जेष्ठ २०८३, बिहीबार १२:५९May 28, 2026

. The ‘Annual Status Review Report of Public Enterprises 2083’ released by the government shows that the condition of public institutions in the country is mixed.

According to the report, out of a total of 45 public enterprises in the country, six are defunct as of the end of the fiscal year TAG_OPEN_div_48 2081/82. According to a report released by the Ministry of Finance on Wednesday, the government has more than 50 per cent control over the share capital and the entities established to produce and distribute goods and services are classified as public corporations.

Similarly, there are 10 enterprises related to industrial, 10 to financial sector, 11 to service sector, four to business, five to social sector and five to public utilities.TAG_OPEN_div_45 Janakpur Cigarette Factory Limited, Nepal Metal Company Limited, Nepal Orion Magnesite Private Limited, Butwal Thread Factory Limited, Nepal Engineering Consultancy Service Center and National Construction Company Nepal Limited are in operation although they are in operation legally.

Only TAG_OPEN_div_43 43 out of 45 corporations have been included in the report as financial details have not been received from Nepal Engineering Consultancy Service Center and National Construction Company Nepal Limited for a long time.

Udayapur Cement Industry Limited, Hetauda Cement Industry Limited and Nepal Drugs Limited have not been operating in full capacity during the review period.TAG_OPEN_div_41 The Nepal Infrastructure Construction Company is yet to take full commercial shape and Dhauwadi Iron Company Limited is in the pre-production phase.

Public enterprises play an important role in strategic infrastructure building, market balance, financial development, social security and crisis management.TAG_OPEN_div_39 The government has concluded that the public enterprises have contributed to maintaining market balance by controlling the possible monopoly of the private sector, artificial scarcity, cartels, syndicates and black marketeering.

The report states that the role of public enterprises is important in the expansion of banks and financial sectors, resource mobilization and price stability.TAG_OPEN_div_37 Corporations have made significant contributions to the government treasury through taxes and dividends.

According to the report, out of the 45 corporations in existence as of the fiscal year 2081/82, 20 are fully owned by the Government of Nepal while 25 corporations have more than 50 percent ownership by the government and government agencies.TAG_OPEN_div_35 The government has more than 90 percent stake in 32 corporations and more than 60 percent share in 36 corporations.

All TAG_OPEN_div_33 five social sector corporations are fully owned by the government. In the industrial sector, the government has hundred percent investment in Dairy Development Corporation, Udayapur Cement Factory, Hetauda Cement Factory, Janakpur Cigarette Factory and Dhauwadi Iron Factory.

The government also has full ownership in the service sector Nepal Transit and Warehousing Management Company, Nepal Airlines Corporation, Civil Aviation Authority of Nepal, Nepal Railway Company, among other corporations.TAG_OPEN_div_31 In the public utility sector, the Nepal Water Supply Corporation and Nepal Electricity Authority are fully owned by the government.

The report shows that the government does not have full ownership of financial institutions.TAG_OPEN_div_29 The government holds 99.97 percent stake in Rastriya Banijya Bank.

In the fiscal year TAG_OPEN_div_27 2081/82, the paid-up capital of public enterprises increased by 2.38 percent to Rs 437.80 billion. However, the government’s share in total shareholding decreased by 0.29 percentage points to 91.68 percent from the previous year. The remaining 8.32 percent is held by other corporations and private sector.

The government has 100 per cent ownership in the social sector, 99.54 per cent in the service sector, 99.81 per cent in the business sector, 98.84 per cent in the public utility sector and 95.67 per cent in the industrial sector.TAG_OPEN_div_25 In the financial sector, the government has the lowest stake of 64.41 percent.