SOEs
ISLAMABAD: More than 15 state-owned enterprises (SOEs) in Pakistan have collectively incurred staggering losses amounting to Rs5.89 trillion during the first half of the fiscal year 2024-25, according to a biannual performance report released by the Ministry of Finance.
The report has reignited concerns over the chronic financial instability plaguing the country’s public sector, with recurring issues in governance, inefficiency, and delays in implementing much-needed reforms.
The data, compiled by the Ministry’s Central Monitoring Unit (CMU), covers the period from July to December 2024 and paints a grim picture, particularly in the energy and infrastructure sectors. According to the CMU, overall revenues generated by SOEs declined by 8%, while profits dropped by 10% compared to the same period last year.
The National Highway Authority (NHA) emerged as the most significant loss-making entity. The authority recorded a cumulative deficit of Rs19.53 trillion, with a fresh loss of Rs153.27 billion in just six months, highlighting ongoing inefficiencies in the infrastructure sector.
In the energy sector, power distribution companies (DISCOs) continued to bleed heavily. The Quetta Electric Supply Company (QESCO) alone posted losses of Rs58.10 billion in the six-month period. Sukkur-based SEPCO added Rs29.60 billion in fresh losses, taking its total to nearly Rs473 billion. Similarly, the Peshawar Electric Supply Company (PESCO) recorded a six-month loss of Rs19.68 billion, bringing its overall deficit to an alarming Rs685 billion.
The report also drew attention to the power sector’s central role in contributing to Pakistan’s ballooning circular debt, which now stands at Rs4.9 trillion. Out of this, the electricity sector alone accounts for Rs2.4 trillion, underscoring deep-rooted inefficiencies and revenue recovery issues.
Adding to the fiscal burden, pension liabilities have surged to Rs1.7 trillion. These pending payments continue to place significant pressure on the national exchequer, further complicating efforts to stabilize the economy.
Among other struggling entities, Pakistan Steel Mills reported a six-month loss of Rs15.60 billion, increasing its total accumulated losses to Rs255.82 billion. Meanwhile, the Pakistan Agricultural Storage and Services Corporation (PASSCO) registered Rs7 billion in losses during the same period.
Despite the bleak outlook for some entities, the overall financial metrics of SOEs showed marginal improvement. The report noted that the total gross revenue of these enterprises stood at Rs6.459 trillion between July and December 2024 — a year-on-year decline of 7.9%.
The fall in earnings was largely attributed to lower global oil prices and a decrease in domestic interest rates, which adversely affected the profitability of oil companies and banks.
Total profits across all SOEs were recorded at Rs457 billion. However, loss-making companies collectively reported a loss of Rs343 billion. After accounting for these losses, the overall net profit was Rs114 billion, a modest increase compared to Rs101 billion recorded during the same period last year.
On the balance sheet front, the total liabilities of SOEs rose by just over 1%, reaching Rs31.09 trillion, while the total value of assets increased by 3.75%, reaching Rs37.72 trillion.
This led to a nearly 19% rise in net equity, which now stands at Rs6.63 trillion — indicating a slight recovery in asset value relative to liabilities, despite the broader structural challenges that persist across Pakistan’s state-run enterprises.
