ISLAMABAD: Under conditions agreed with the International Monetary Fund (IMF), the Ministry of Finance has released a sobering performance report on state-owned enterprises (SOEs), revealing unprecedented financial losses and mounting debt burdens.
According to the report, the combined losses of over 15 major government-run companies have soared past Rs 5,893 billion, a historic high that underscores deep structural problems in the public sector. The report warns of an alarming rise in circular debt and pension liabilities, threatening Pakistan’s fiscal stability.
Total SOE losses grew by Rs 3.45 trillion in just the first six months of the last fiscal year. Circular debt has reached Rs 49 trillion overall, with the power sector accounting for Rs 24 trillion of that figure, and the gas and petroleum sectors together contributing Rs 25 trillion. Pension-related liabilities have also ballooned to Rs 17 trillion.
Losses in power distribution companies continue to deepen. The Quetta Electric Supply Company (QESCO) posted a six-month loss of Rs 58.1 billion, with its total losses reaching Rs 770.6 billion. The Peshawar Electric Supply Company (PESCO) reported a six-month loss of Rs 19.68 billion, with cumulative losses at Rs 684.9 billion. Sukkur Electric Power Company registered a six-month loss of Rs 29.6 billion.
Other major state-owned enterprises are also running significant deficits. Pakistan Steel Mills recorded a six-month loss of Rs 15.6 billion, pushing its overall losses to Rs 255.82 billion. Pakistan Telecommunication Company Limited (PTCL) saw its losses increase by Rs 7.19 billion over six months. Meanwhile, the Pakistan Agricultural Storage and Services Corporation (PASSCO) posted a six-month loss of Rs 7 billion.
The Ministry of Finance described these figures as deeply concerning and stressed the urgent need for reforms in loss-making SOEs to meet IMF conditions and avoid further economic deterioration.
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