KATHMANDU: Nepal’s government faces long-term fiscal pressure as the potential liabilities of public enterprises (PEs) have risen by 3.03%, reaching Rs 2.26 trillion.

A report released today reveals that these institutions are in crisis due to vague objectives, operational inefficiencies, political interference, and poor management.

Currently, out of 45 operating PEs, 16 are running at a loss and two are entirely shut down, failing to meet their foundational goals.

To resolve this, the report urges the government to immediately launch an integrated reform program—encompassing investment management, policy updates, and legal restructuring—while establishing a clear strategy to classify PEs and determine which sectors should be handed over to the private sector.