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Five Public Enterprises Suffer High Losses, Bearing More Than 51 Percent of Total Losses

nabil bank

. In the fiscal year 2081÷82, the financial condition of the country’s public enterprises is weakening. According to the Ministry of Finance, five public corporations which had run business during the review period saw high loss.

Five corporations have borne more than 51.3 TAG_OPEN_div_20 8 per cent of the total loss. In the last review period, the loss was 63.63 percent.

Nepal Airlines Corporation (NAC) is the company that has suffered the most loss during this period.TAG_OPEN_div_18 The company reported a loss of Rs 1.23 billion. Similarly, Nepal Water Supply Corporation (NWC), Nepal Dairy Development Corporation (Rs 402.1 million), Hetauda Cement Industry (Rs 312.4 million) and Udayapur Cement Industry (Udayapur) are among the other industries in the country.

Like last year, Nepal Airlines Corporation (NAC) has suffered the highest net loss this year.TAG_OPEN_div_16 The corporation’s financial condition is further deteriorating due to problems in the payment of principal and interest of the loan taken for the purchase of the aircraft, high administrative expenses, low utilization of aircraft and weak implementation of business plan.

Similarly, in other institutions, high tariff arrears, poor coordination, low utilization of production capacity, increasing administrative expenses and weak presence in the changing market are the main reasons for the loss.TAG_OPEN_div_14

} Due to the increasing difficulties in the payment of the principal and interest of the loans and the lack of effective business planning, the net and accumulated losses of the public enterprises have been continuously increasing and this has also increased the overall financial risk.

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