Govt invests over Rs 930bn in 159 public institutions in FY 2024/25: PDMO

KATHMANDU: The government has invested more than Rs 930.88 billion in 159 public institutions and bodies, as of fiscal year 2024/25. These investments were made in the form of share and loan investments, the Public Debt Management Office said.

As of fiscal year 2024/25, the government has invested more than Rs 930.88 billion in 159 public institutions and bodies in the form of share and loan investments, the Public Debt Management Office said in its annual report on the government’s share and loan investment.

The report states the government’s total share investment stood at over Rs 404.81 billion in 116 institutions as of fiscal year 2024/25. The institutions with the largest share of investments are Nepal Electricity Authority (NEA), the Civil Aviation Authority of Nepal (CAAN), Nepal Telecom, Rastriya Banijya Bank and Agricultural Development Bank.

The government’s total loan investment as of fiscal year 2024/25 exceeded Rs 526.06 billion. Of this, more than Rs 158.18 billion was from domestic sources and Rs 367.88 billion from foreign sources, the office said. The institutions with the largest loan investments include the NEA, the Kathmandu Valley Water Supply Management Board (KVWSMB), CAAN and Nepal Drinking Water Corporation.

In fiscal year 2024/25 alone, a total of Rs 41.48 billion was invested, including Rs 5.52 billion in share investments and Rs 35.95 billion in loan investments.

The report states that as of fiscal year 2024/25, the government received over Rs 2.62 billion in principal repayments and Rs 5.29 billion in interest receipts.

Despite the large government investment in various institutions and bodies, returns on those investments appear weak. Liabilities are rising as the bodies receiving loans and share investments fail to repay principal and interest to the government on time. “As of fiscal year 2024/25, the total overdue amount is over Rs 400.08 billion, which includes overdue principal of over Rs 259.19 billion and overdue interest of Rs 140.88 billion,” the report said.

The public institutions with the highest overdue principal and interest include the NEA, KVWSMB, Nepal Water Supply Corporation and CAAN.