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A new study has revealed significant inconsistencies in pay, benefits and service conditions across public enterprises, exposing a system marked by discretion, weak oversight and opaque financial practices.

A task force formed by the Ministry of Finance said in its report that there is no uniform standard for salaries or facilities for staff. In most institutions, boards of directors decide benefits at their own discretion. The absence of a unified legal framework, limited monitoring, and pressure from employee unions have contributed to the uneven system, according to the report.

Among 48 institutions surveyed by the task force, only eight were found to have followed the pay scale set by the government on allowance distribution. Eleven were found to have relied on decisions of their general assemblies, while nine were found to have left the matter entirely to board discretion. Similarly, six have determined allowances according to their internal rules, while five have been following predetermined rates. 

Nepal Rastra Bank (NRB) and Nepal Electricity Authority (NEA) are providing the highest allowance of Rs 9,000 per meeting. Two institutions provide Rs 8,000, one pays Rs 7,500, and four offer Rs 7,000 per meeting, according to the report.

The task force also highlighted sharp variations in monthly compensation for chief executives of the institutions it surveyed. Rastriya Banijya Bank tops the list with a monthly package of Rs 450,000, followed by Agriculture Development Bank and Nepal Bank both of which pay Rs 400,000, while the Nepal Tourism Board pays Rs 391,000.

There are also significant variations in the pay of officer-level employees in the surveyed institutions. Out of 60 institutions studied by the task force, 17 pay less than Rs 50,000 a month, 25 fall in the Rs 50,000–75,000 range, and seven pay above Rs 75,000.

The study documents a long list of non-transparent allowances given under headings such as risk, housing, telephone, station, regulation and incentive. Many institutions distribute these benefits without informing the Ministry of Finance. Provident fund arrangements of these institutions also differ, with only 21 institutions using a contribution-based system.

Some of these institutions offer one month’s salary or a 15–35 percent bonus during anniversaries. Similarly, 28 of the studied institutions have welfare and protection, with annual deposits of two to five months’ salary. Staff in some institutions can access loans for houses, land or vehicles at interest rates as low as 1–5 percent. A few institutions have even distributed company shares, despite lacking legal authority to do so.

The taskforce has recommended sweeping reforms to standardize these facilities. It has proposed making the Ministry of Finance approval mandatory for all financial obligations, including salaries, allowances and retirement benefits of these institutions. Similarly, it has recommended introducing a single service-condition regulation for all these institutions, backed by an umbrella law to enforce financial accountability.

The panel has suggested preventing loss-making or grant-dependent institutions from offering benefits higher than those in the civil service. It also suggested introducing performance-based incentives, cabinet-set salaries for chief executives, and minister-level approval for benefits for board members.

Likewise, it has suggested introducing separate, market-aligned structures for special professions such as doctors, nurses, pilots and insurance experts. It has recommended making these institutions adopt fully contribution-based social security, creating a mandatory retirement fund, abolishing opaque funds, removing non-monetary perks and eliminating provisions that allow boards or employees to set their own benefits.

The Nepal Electricity Authority (NEA) is investing Rs 3 billion for a joint venture to be established for the development of two cross border transmission lines.

The NEA and India's Power Grip Corporation will have their investments in the JV, according to the Ministry of Energy, Water Resources and Irrigation.

The Ministry stated that Rs 1 billion will be invested for the JV to be established in Nepal and Rs 2 billion in India as the equity share. The NEA would invest the amount from its own internal resources.

As already agreed by the officials of the two countries, the JV will be set up for the construction of Inaruwa-Purniya and Dodhara-Bareli cross border transmission lines.

The important transmission lines for energy exchanges would be completed by 2030.

It is said that the JV to be established in Nepal will have 51 percent in shares from the NEA and 49 percent from the Indian Power Grid Corporation.

The Nepal Stock Exchange (NEPSE) plunged by 0. 79 points to close at 2, 560 . 29 points on Thursday.

Similarly, the sensitive index dropped by 1. 61 points to close at 440. 65 points.

A total of 10,449,296-unit shares of 328 companies were traded for Rs 4. 68 billion.

Meanwhile, Dhaulagiri Laghubitta Bittiya Sanstha Limited (DLBS), Bandipur Cablecar and Tourism Limited (BANDIPUR) and Jhapa Energy Limited (JHAPA) were the top gainer today with its price surging by 10. 00 percent.

Likewise, Bungal Hydro Limited (BUNGAL) was the top loser as its price fell by 9. 05 percent.

At the end of the day, the total market capitalization stood at Rs 1. 45 trillion.

The Bagmati province government has raised revenue over Rs 11.59 billion or 17.18 percent of its annual target for the fiscal year 2082/83 BS.

The land and house registration and vehicle tax are considered the major sources of revenue of the province government.

As it was estimated to collect revenue of Rs 30.891 billion in the fiscal year 2082/83 BS, around 22.45 percent of the target or 6.936 billion has been raised during the period from Shrawan (mid-August) to Kartik (mid-November), said Public Information Officer at the Internal Affairs and Planning Ministry of the Bagmati Province, Suraj Paudel.

Under the land and house registration category, Rs 1.237 billion or 16.7 percent of the annual target was collected.

Likewise, the provincial government has collected revenue of Rs 2.411 billion or 28.2 percent of the target under the vehicle tax heading during the reporting period, it is stated.

Other sources of revenue of the provincial government during the period included Rs 2.495 billion from Value Added Tax and Rs 843.6 million from the excise duty, the ministry shared.

Information Officer Paudel further said that the province government received Rs 3.463 billion or 23.37 percent of the estimated revenue from the equalization grant of the federal government.

The province government has collected Rs 1.132 billion or 23.70 percent of the target under the internal sources during the reporting period of the fiscal year 2082/83 BS.