The federal government has announced a major investment of Rs288 billion to improve the infrastructure and performance of key state-owned enterprises (SOEs). This new strategy allows these enterprises to fund their own development projects beyond the traditional Public Sector Development Programme (PSDP).
This initiative targets critical sectors such as energy, telecommunications, water, and defence production. By encouraging SOEs to invest independently, the government aims to promote performance-based public investment and increase fiscal self-reliance.
The Petroleum Division leads this effort, with companies like Oil and Gas Development Company Ltd (OGDCL), Sui Northern Gas Pipelines Ltd (SNGPL), and Pak-Arab Refinery Ltd (PARCO) investing Rs109 billion collectively. The Power Division follows closely, with Rs77 billion allocated through entities like the National Transmission and Dispatch Company (NTDC).
Telecom and IT sectors will also contribute, with Pakistan Telecommunication Authority (PTA) and National Telecommunications Corporation (NTC) planning to invest Rs34.4 billion. Additionally, Wapda will allocate Rs26 billion for water security and climate resilience projects.
Despite these investments, SOEs faced significant financial challenges in 2023-24, reporting losses of Rs851 billion and loans totaling Rs9.2 trillion. However, some enterprises like OGDCL and Pakistan Petroleum Ltd posted strong profits, showing promising signs for future growth.
The Planning Ministry has instructed divisions to list all non-PSDP projects by SOEs. This data will help build an investment map to improve transparency, encourage public-private partnerships, and boost sector efficiency across the country.