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Profits expected to jump
KATHMANDU, JUL 11 -
The 36 public enterprises (PEs) in Nepal are expected to make a combined operating profit of Rs. 13.83 billion in the current fiscal year 2009-10, up from Rs. 10 billion in the last fiscal year. This year's operating profit amounts to 6.04 percent against a total capital investment of Rs. 228.68 billion.
An annual performance review of the PEs made public on Monday revealed that 20 out of the 36 PEs are estimated to make a profit. According to the government's report, 18 public enterprises made a profit while the same number suffered losses in the last fiscal year 2008-09.
Regarding many PEs still running in the red, Tanka Mani Sharma, joint secretary at the Ministry of Finance, said the government had forbidden them from taking loans by putting up land as collateral as the money obtained was being misused.
"Employees should be recruited by the Public Service Commission or another independent agency and a professional board is also essential," said Sharma. Hetauda Cement Industry, Agriculture Inputs Corporation, National Construction Company, Janak Educational Materials Centre and Agricultural Development Bank are expected to make a profit this year although they incurred losses in the last fiscal year.
Nepal Oil Corporation, Gorkhapatra Sansthan, Rural Housing Company, Deposit and Credit Guarantee Corporation and Nepal Airlines Corporation made profits in the last FY 2008-09 although they had incurred losses in the FY 2007-08.
Although profits of PEs soared to Rs. 10.55 billion in the last fiscal year from Rs. 4.94 billion in the previous year, it was largely due to Nepal Oil Corporation's making a profit of Rs. 3.31 billion.
All the seven PEs under the industry category incurred losses leading to a growth of losses to Rs. 701.1 million last year from Rs. 435.9 million in the previous year. The trading sector that witnessed a loss of Rs. 5.69 billion the previous year made a profit of Rs. 3.22 billion last year due to Nepal Oil Corporation's higher profits.
The service sector suffered a loss of Rs. 593.4 million from a profit Rs. 215.3 million the preceding year. The loss incurred by the Civil Aviation Authority of Nepal is the main factor behind the loss the sector incurred last year. Profits of the public utility sector dropped to Rs. 4.57 billion last year from Rs. 7.02 billion the previous year due to huge loss incurred by the Nepal Electricity Authority. Its loss amounted to Rs. 7.12 billion last year which the Finance Ministry says should decrease to Rs. 5.16 billion this fiscal year.
Among PEs, 14 have had an audit of accounts for FY 2008-09.
PEs’ taking healthy turn
2008/09 ( in Rs) 2007/08 ( in Rs)
Manufacturing -701.1 million 435.9 million
Trading +Rs. 3.22 b -5.69 b
Service -593.4 million + 215.3 million
Social sector -283.2 million - 124.9 million.
Public utility +4.57 b 7.02 b
Financial +4.32 b 3.96 b
Posted on: 2010-07-12 09:24
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