Nepal’s public enterprises are facing mounting financial stress, with overdue debt rising sharply to Rs 408 billion in fiscal year 2024/25, compared to Rs 92 billion four years earlier. According to the Public Debt Management Office, of the government’s total investment of Rs 930 billion, loans account for Rs 526 billion. The Nepal Electricity Authority alone contributes nearly 70 percent of total defaults, with Rs 278 billion in unpaid principal and interest. Analysts attribute the worsening situation to political interference and weak institutional management.
