Government investment in public enterprises rises 13 percent, dividend returns decline
Summary
Government investment in public enterprises rose by 13 percent this fiscal year, while dividend returns declined by over 5 percent due to losses in several enterprises, highlighting concerns about governance and efficiency.
Key Points
- Government investment in public enterprises increased by 13.4 percent to Rs798.56 billion in fiscal year 2025-26.
- Dividend income from public enterprises declined by 5.2 percent to Rs8.37 billion, mainly due to losses in 16 of 45 enterprises.
- Nepal Airlines Corporation recorded the highest accumulated losses, exceeding Rs18.90 billion.
- Experts cite outdated technology, market competition, administrative procedures, and lack of autonomy as key challenges for public enterprises.