Government Invests Over Rs 930 Billion in Public Entities

The Government of Nepal has invested a total of Rs 930.88 billion in shares and loans across 159 public corporations and bodies up to fiscal year 2024/25, according to the Annual Report of Share and Loan Investment of the Government of Nepal published by the Public Debt Management Office.

The report shows that the government’s share investment reached Rs 404.81 billion in 116 public corporations. The Nepal Electricity Authority (NEA), Civil Aviation Authority of Nepal (CAAN), Nepal Telecom, Rastriya Banijya Bank and Agricultural Development Bank are the entities with the highest share investments.

Similarly, loan investment stood at Rs 526.6 billion as of last fiscal year, comprising Rs 158.18 billion from internal sources and Rs 367.88 billion from external sources. NEA, Kathmandu Valley Water Supply Management Board, CAAN and Nepal Water Supply Corporation are the major loan-recipient entities.

The government received Rs 2.623 billion in principal repayments and Rs 5.29 billion in interest during the review period.

In the last fiscal year alone, the government invested Rs 41.48 billion—including Rs 5.53 billion in share investments and Rs 35.96 billion in loans.

Despite the substantial investment, returns from many entities remain weak. Several corporations have continued to accumulate liabilities, failing to pay interest to the government on time.

The report states: “As of fiscal year 2024/25, the overdue principal amount stands at Rs 259.20 billion, while overdue interest amounts to Rs 140.88 billion, bringing the total overdue amount to Rs 400.08 billion.”

High-interest overdue loans are concentrated in public corporations such as NEA, Kathmandu Valley Water Supply Management Board, Nepal Water Supply Corporation and CAAN. -- RSS