ISLAMABAD: More than 15 state-owned enterprises (SOEs) have racked up a staggering Rs5.89 trillion in combined losses, according to the Ministry of Finance, renewing concerns about the financial health of Pakistan’s public sector, marred by governance and reform gaps.
The figures, covering the first half of the fiscal year 2024-25 (July to December 2024), highlight persistent losses across key sectors, especially energy and infrastructure, the Ministry’s Central Monitoring Unit (CMU) said in its biannual performance report.
The ministry said that total revenues fell by 8% and profits dropped by 10% during the first half of the FY25.
The MCU report reveals that the National Highway Authority (NHA) emerged as the biggest loss-maker, with its cumulative deficit reaching Rs19.53 trillion. In just six months, the NHA recorded a fresh loss of Rs153.27 billion.
Power distribution companies (DISCOs) also continued to bleed money. The Quetta Electric Supply Company (QESCO) reported losses of Rs58.10 billion in the six months, while Sukkur-based SEPCO lost Rs29.60 billion. SEPCO’s total losses have now climbed to nearly Rs473 billion.
The situation isn’t any better at the Peshawar Electric Supply Company (PESCO), which posted a six-month loss of Rs19.68 billion, bringing its overall deficit to nearly Rs685 billion.
The report shows that the power sector remains a major source of circular debt, with liabilities now standing at Rs4.9 trillion. The electricity sector alone accounts for Rs2.4 trillion of that total.
Pension liabilities are also adding to the financial pressure. The report estimates that pending pension payments have swelled to Rs1.7 trillion.
Among other troubled entities, Pakistan Steel Mills posted a six-month loss of Rs15.60 billion, pushing its total losses to Rs255.82 billion. Meanwhile, the Pakistan Agricultural Storage and Services Corporation (PASSCO) lost Rs7 billion during the same period.
According to the finance ministry, distribution companies continue to show a worrying trend of growing losses.
Moreover, as per the half-yearly report, the SOEs earned Rs6.459 trillion in gross revenue during July to December 2024 — a drop of 7.9% compared to the same period last year. The decline was mainly due to falling global oil prices and lower domestic interest rates, which hit the earnings of oil companies and banks.
Total profits for all SOEs fell to Rs457 billion. Loss-making companies recorded a combined loss of Rs343 billion. After adjusting for those losses, the overall net profit came to Rs114 billion, slightly better than the Rs101 billion profit recorded a year earlier.
The overall financial health of SOEs showed slight improvement. Their total liabilities increased by just over 1% to Rs31.09 trillion, while the value of their assets rose by 3.75% to Rs37.72 trillion. As a result, their net equity — the difference between assets and liabilities — increased by nearly 19%, reaching Rs6.63 trillion.
