As part of requirements set by the International Monetary Fund (IMF), Pakistan’s Ministry of Finance has released a detailed performance review of the country’s state-owned enterprises (SOEs), exposing severe financial mismanagement and growing liabilities.
The report shows that more than 15 major government entities have collectively recorded losses exceeding Rs5,893 billion. Alarmingly, in just the first half of the last fiscal year alone, losses surged by Rs3.45 trillion, underscoring deepening financial troubles among these state-run institutions.
Mounting debt and liabilities
The report highlights an increasingly troubling economic scenario:
- Circular debt has escalated to Rs49 trillion, with the power sector contributing Rs2.4 trillion and the gas and petroleum sectors adding Rs2.5 trillion.
- Pension obligations for retired government employees have climbed to Rs1.7 trillion, further straining public finances.
Heavy losses in the power sector
Electricity distribution companies (DISCOs) stand out as the largest contributors to the losses:
- Quetta Electric Supply Company (QESCO) reported a record six-month loss of Rs770.6 billion.
- Peshawar Electric Supply Company (PESCO) followed closely, with total losses of Rs684.9 billion and a six-month loss of Rs19.68 billion.
- Sukkur Electric Supply Company recorded a six-month loss of Rs29.6 billion, while QESCO’s short-term losses alone reached Rs58.1 billion.
These figures reveal chronic inefficiencies, technical losses, and inadequate bill recovery rates affecting Pakistan’s energy sector.
Other struggling state-owned entities
Losses are not limited to the power sector. The report also details substantial deficits in other government-run enterprises:
- Pakistan Steel Mills suffered a six-month loss of Rs15.6 billion, pushing total accumulated losses to Rs255.82 billion.
- Pakistan Telecommunication Company Limited (PTCL) recorded an additional Rs7.19 billion in losses over six months.
- Pakistan Agriculture Storage and Services Corporation (PASSCO) reported a six-month loss of Rs7 billion.
Together, these figures paint a stark picture of Pakistan’s public sector, where longstanding structural inefficiencies and governance challenges continue to weigh heavily on the national economy.
