Rs354.81B Allocated for SOE Reforms in FY26

Islamabad, June 11, 2025 — The federal government has unleashed a massive Rs354.81 billion allocation for State-Owned Enterprises (SOEs) under the Public Sector Development Programme (PSDP) for FY 2025–26, a staggering 80.3% hike from last year’s Rs196.83 billion, signaling a bold commitment to strategic and developmental roles amid ongoing reforms. Finance Minister Muhammad Aurangzeb, in his FY25–26 budget speech, flagged loss-making SOEs as a fiscal burden exceeding Rs1 trillion annually, including Rs800 billion in direct costs and subsidies, grants, and equity injections.

Aurangzeb underscored the urgency of SOE reform for fiscal discipline, noting a cabinet committee’s categorisation—dividing entities for restructuring, privatisation, or public-private partnership (PPP) models. He vowed to shrink the public sector, push privatisation and rightsizing in FY26, and install professional boards to curb political interference and boost autonomy. A modern privatisation strategy targets energy and financial services, with key transactions—including the long-delayed privatisation of Pakistan International Airlines (PIA) and the Roosevelt Hotel—set for completion.

Web context highlights Pakistan’s SOE debt crisis (e.g., Rs2 trillion losses, web ID: 0), while X posts show mixed reactions—some support reform, others doubt execution. Critically, the narrative of “reform commitment” may mask fiscal strain—web sources note inefficient SOEs, and X sentiment suggests skepticism about privatisation success, hinting at persistent challenges.