The latest report from the Ministry of Finance shows that losses in more than 15 government-owned companies have crossed Rs 5.9 trillion. The report reveals a sharp increase in losses during the first six months of the last fiscal year. Pension liabilities also rose, reaching Rs 1.7 trillion. These rising losses add significant pressure on the national economy.
Among the worst affected companies is the National Highway Authority (NHA), which recorded losses of Rs 1.953 trillion. The Quetta Electric Supply Company (QESCO) follows with a loss of Rs 770.6 billion. The Peshawar Electric Supply Company (PESCO) ranks third, with losses hitting Rs 684.9 billion. These numbers reflect a growing trend of losses in electricity distribution companies.
Furthermore, the Ministry’s report highlights a worrying rise in the circular debt of these companies, which has now reached Rs 4.9 trillion. The power sector alone contributes Rs 2.4 trillion to this debt. This increasing circular debt is a key challenge affecting the financial health of state enterprises.
The report also details losses by other important companies. The NHA lost Rs 15.3 billion in the last six months of 2024. QESCO’s six-month loss was Rs 5.8 billion, while the Sui Northern Gas Pipeline Company (SNGPL) and Steel Mills reported significant deficits as well. Pakistan Telecommunication Company reported a six-month loss of Rs 719 million, totaling Rs 4.3 billion in overall losses.
Overall, the financial situation of many government institutions remains fragile. The Ministry of Finance’s report urges urgent reforms to control losses and improve the financial health of these organizations. If unchecked, these losses could deepen Pakistan’s economic challenges in the coming years.