Pakistan SOEs Report Rs122.9bn Net Loss in FY2024-25

The Finance Division disclosed that Pakistan’s state-owned enterprises (SOEs) incurred a collective net loss of Rs122.9 billion in FY2024-25, notwithstanding aggregate revenues of approximately Rs12.4 trillion.

While profit-generating SOEs registered a 13% year-on-year decline in earnings, from Rs820.7 billion to Rs709.9 billion, the losses of deficit-incurring entities moderated marginally by 2% to Rs832.8 billion.

The Cabinet Committee on State-Owned Enterprises (CCoSOEs), presided over by Finance Minister Senator Muhammad Aurangzeb, conducted a detailed review of the SOE portfolio during its session at the Finance Division.

Persistent losses remain heavily concentrated within a limited group of entities, predominantly in the transport and power distribution sectors. The National Highway Authority (NHA) and various Distribution Companies (DISCOs) continue to exert significant pressure on the overall portfolio owing to entrenched structural inefficiencies, elevated depreciation charges, substantial financing costs, and mandatory public-service obligations.

Pursuant to the State-Owned Enterprises Act, 2023, SOEs have been categorised into green, amber, and red tiers to facilitate prioritised reform interventions. Government support to the sector escalated to Rs2,078 billion during the year, primarily through equity injections aimed at resolving circular debt. Subsidies recorded a modest reduction.

Inflows to the national exchequer from SOEs—comprising dividends, taxes, and interest—totalled Rs2,119 billion. Aggregate SOE indebtedness rose to Rs9.57 trillion, encompassing domestic and foreign borrowings, bank loans, and accumulated interest obligations. Unfunded pension liabilities are estimated at around Rs2 trillion, while off-balance-sheet guarantees and contingent liabilities stand at Rs2.16 trillion.

The Finance Minister commended the Central Monitoring Unit (CMU) for significant advancements in transparency, adoption of IFRS-compliant financial reporting, and the establishment of a digital repository that supports data-driven governance and oversight. Committee members underscored the necessity of rigorous audit enforcement, full IFRS implementation by February 2026, preparation of pragmatic business plans, targeted loss-mitigation strategies, and imposition of strict budgetary discipline on persistently loss-making entities.

The CCoSOEs approved the release of the Annual Consolidated Performance Report for public dissemination and directed its circulation to the concerned line ministries. The committee also ratified the appointment of independent directors to the boards of Gujranwala Electric Power Company, Jamshoro Power Generation Company, Energy Infrastructure Development and Management Company, Independent System and Market Operator, Islamabad Electric Supply Company, and Tribal Areas Electric Supply Company.

The meeting was attended by federal ministers responsible for power, science and technology, planning, commerce, and maritime affairs, together with senior officials from pertinent ministries and regulatory authorities.