PM Shah Says Signs of Recovery Emerging in State-Owned Industries

Dragon Media Correspondent

Prime Minister Balendra Shah has said signs of improvement are beginning to emerge in state-owned industries and public enterprises that had remained closed or loss-making for years. He said the government has given priority to reviving national industries and making them more competitive.

In a social media post, Shah said that despite long-standing public frustration over the condition of national industries and institutions, positive results have begun to appear in recent months.

“When intentions are clean and responsibilities are carried out with honesty, new doors for improvement can open even in the most challenging circumstances,” he wrote.

According to Shah, the government has prioritized facilitation, encouragement and coordination from the outset in an effort to revive national industries and public enterprises. He said consistent implementation of laws and collective effort had begun to produce encouraging results in several institutions.

Shah cited Nepal Drugs Limited, Hetauda Textile Industry, Nepal Airlines Corporation, Dairy Development Corporation and Singha Durbar Vaidyakhana Development Committee as examples of recent progress.

According to him, Nepal Drugs Limited, which had been operating at a loss for years, sold medicines worth Rs 23.8 million over the past four months. He said sales increased after the company obtained Good Manufacturing Practice standards recognized by the World Health Organization, while the company earned a profit of Rs 30 million in the previous fiscal year.

The company has set a target of selling medicines worth Rs 300 million in the current fiscal year.

Under the government’s 100-point governance reform agenda, Nepal Drugs Limited aims to produce 98 types of medicines for free distribution within the next three years, Shah said.

Of the 37 types targeted for production this year, preparations for 25 are in the final stage, while 11 types are currently being produced.

Shah also said trial production has begun at the long-closed Hetauda Textile Industry after the Nepal Army was assigned responsibility for the initial production phase. Looms have been repaired, and the government plans to operate the factory after the trial is completed.

He also reported improved financial performance at Nepal Airlines Corporation.

According to Shah, the national flag carrier earned Rs 6.2763 billion between mid-March and mid-July of the previous fiscal year, an increase of Rs 1.1021 billion compared with the same period a year earlier.

During the period, the airline’s seat occupancy rate reached 86 percent, six percentage points higher than in the corresponding period of the previous year.

Shah said the corporation also repaid Rs 1.0619 billion in loan installments owed to the Employees Provident Fund and the Citizen Investment Trust for aircraft purchases.

At the Dairy Development Corporation, priority has been given to clearing outstanding payments owed to farmers, he said.

According to Shah, the payment cycle, which had stretched to as long as eight months, has been reduced to two to three months, while outstanding dues have fallen from Rs 720 million to Rs 350 million.

Farmers have also been granted an additional incentive of one rupee per litre of milk.

Shah said daily sales at the corporation have increased by 35 percent following the reform measures, with average daily revenue rising from Rs 60 million to Rs 90 million.

He added that discontinuing butter and milk benefits previously provided to employees in violation of regulations had saved around Rs 30 million annually.

The Dairy Development Corporation is also preparing to export ghee to Gulf countries and butter and churpi to China, while cheese production is set to resume at its Nagarkot facility.

Shah further said the Singha Durbar Vaidyakhana Development Committee has produced and marketed Ayurvedic medicines worth Rs 111.6 million since the formation of the current government.

Its medicine turnover reached around Rs 130 million in the previous fiscal year, about four times the level recorded in the preceding year, according to Shah.

The institution is working toward self-sufficiency in producing 35 types of medicines distributed free of charge. It currently produces 105 types of Ayurvedic medicines and aims to increase the number to 150 during the current fiscal year.

Shah also said the institution aims to obtain Good Manufacturing Practice standards for powdered and tablet medicines and establish a processing center for medicinal herbs and pharmaceutical raw materials.

The prime minister expressed confidence that other struggling state-owned industries could also be revived if honesty, commitment and dedication to the country are maintained.

He said public support, constructive cooperation and trust would be important as the government seeks to increase domestic production and strengthen national self-reliance.