Nepal’s state-owned enterprises show mixed performance as public debt climbs

Kathmandu: Nepal’s state-owned enterprises have shown modest improvement overall, but major financial and structural challenges continue to persist.

According to the latest report on public enterprises presented in the House of Representatives by Finance Minister Swarnim Wagle, 27 of the country’s 45 existing public enterprises recorded profits in the last fiscal year 2024/25 (2081/82 BS), while 16 operated at a loss. The remaining two institutions remain closed.

The number of profitable enterprises has slightly declined compared to the previous fiscal year, when 28 state-owned companies were in profit.

The report shows that the Government of Nepal’s total investment in public enterprises has reached Rs 798.56 billion. Of this amount, Rs 370.25 billion has been invested as equity, while Rs 428.31 billion has been provided in the form of loans.

At the same time, the country’s public debt burden continues to rise. By mid-March 2026 (Falgun 2082), Nepal’s total public debt had climbed to Rs 2.878 trillion, equivalent to 43.6 percent of the country’s gross domestic product (GDP).