Though public enterprises (PEs) booked net profit of Rs 34.96 billion in 2015-16 (an increment by 1.6 per cent as compared to the previous fiscal year), the state-owned enterprises are expected to face net loss by more than 41 per cent in fiscal 2016-17, shows a government report.
The Annual Status Updates of PEs tabled by the Ministry of Finance (MoF) at the Parliament on Sunday has projected that overall net profit of the PEs would stand at Rs 20.43 billion in fiscal year 2016-17. PEs had booked profit of Rs 34.96 billion in 2015-16 and Rs 34.4 billion
As per the report, seven out of the 35 PEs in operation will record net loss in 2016-17. The loss-booking PEs in the ongoing fiscal year include Nepal Orient Magnetite Company, Nepal Drugs Ltd, Udaypur Cement Industry, National Productive and Economic Development Centre Ltd, Nepal Television, Nepal Water Supply Corporation and Nepal Electricity Authority (NEA).
The government has categorised PEs into six broad categories — industrial, trading, service, social, financial and public utility.
The report shows that a majority of PEs listed under the industrial category will incur losses in the ongoing fiscal year. Nepal Orient Magnetite Company, Udaypur Cement Industry and Nepal Drugs Ltd, which are listed under the industrial category, will incur loss this year, as per the report.
Similarly, National Productive and Economic Development Centre Ltd, which is listed under the service category, is expected to report net loss in 2016-17.
Likewise, only Nepal Television out of the five PEs listed under social category is expected to face net loss in the ongoing fiscal, according to the report. NEA and Nepal Water Supply Corporation, which are listed under the service utility category of PEs, will also face loss in 2016-17.
Meanwhile, all the PEs listed under the trade and financial categories will likely book net profit in the ongoing fiscal year. There are six PEs listed under the trade category and 11 PEs listed under the financial category.
According to the report, Nepal Telecom is expected to book the highest profit among PEs of
Rs 16.74 billion in 2016-17 against Rs 13.27 billion net profit earned by the company in 2015-16. Similarly, NEA is expected to incur highest loss, of Rs 7.9 billion, among loss-making PEs in the ongoing fiscal year. NEA had incurred Rs 8.9 billion loss in 2015-16.
Source : The Himalayan Times