KATHMANDU — In a sweeping push toward state enterprise commercialization, the government has announced plans to corporatize the national flag carrier, Nepal Airlines Corporation (NAC), and break up the state power monopoly, Nepal Electricity Authority (NEA).

Presenting the federal budget for Fiscal Year 2026/27 before a joint session of the Federal Parliament on Friday, Finance Minister Dr. Swarnim Wagle announced that the historic airline will be converted into a public limited company.

First established in 1958 as Royal Nepal Airlines Corporation before being renamed after the country’s transition to a republic, the debt-ridden carrier will undergo this structural transformation to improve its management, efficiency, and financial viability.

In a parallel landmark reform for the energy sector, Dr. Wagle announced that the long-delayed unbundling of the NEA will finally be completed. Under the new restructuring blueprint, the power utility will be formally split and transformed into three independent corporate entities dedicated to electricity generation, transmission and distribution, and power trading.