ISLAMABAD: The financial performance of Pakistan’s state-owned enterprises (SOE) continued to weaken in 2024-25 despite government claims of reforms and economic stabilisation. According to the Ministry of Finance (MoF), consolidated sector-wide financial losses surged by 302 per cent, largely driven by persistent setbacks in the power sector.
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Presenting consolidated financial data to the Cabinet Committee on SOEs, chaired by Finance Minister Muhammad Aurangzeb, the MoF reported a decline in overall revenues and profitability. The data, compiled by the ministry’s Central Monitoring Unit, showed that aggregated revenues fell to roughly Rs12.4 trillion, reflecting reduced profitability in the oil sector due to lower international prices.
Aggregate profits of profit-making SOEs slipped 13pc to Rs709.9bn from Rs820.7bn a year earlier, while losses of loss-making entities marginally improved by 2pc to Rs832.8bn. However, the net outcome remained negative, with overall losses reaching Rs122.9bn, compared to Rs30.6bn last year — more than a threefold increase.
The briefing highlighted that losses remain concentrated in a few large entities, particularly within the transport and power distribution sectors. The National Highway Authority and several power distribution companies continued to weigh heavily on the portfolio, reflecting structural inefficiencies, high financing costs and the public-service orientation of certain operations.
Government fiscal support to SOEs rose to Rs2.078tr in 2024-25, driven mainly by higher equity injections to clear circular debt stocks. Inflows from SOEs to the exchequer increased to Rs2.119tr, supported by higher dividends, interest income and tax receipts.
The portfolio’s debt profile also drew attention, with total SOE debt climbing to Rs9.57tr, comprising foreign re-lent loans, bank borrowing, development loans and accrued interest. Unfunded pension liabilities — estimated at nearly Rs2tr — were identified as a major legacy risk requiring policy intervention, alongside guarantees and off-balance-sheet contingencies amounting to Rs2.16tr.
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The committee reaffirmed commitment to transparency and structural reforms, while emphasising enforcement of audit completion and transition to IFRS-based reporting by February 2026. The finance minister termed the consolidated report a basis for evidence-based governance and sustained accountability in the SOE sector.