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January 11, 2026
State-owned enterprises (SOEs) reported a 301.66 % surge in net losses in fiscal year 2024-25, rising to Rs 122.9 billion despite generating approximately Rs 12.4 trillion in revenue. The Cabinet Committee on SOEs flagged concentrated losses in transport and power sectors, underlining persistent structural weaknesses that undermine financial sustainability
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At a meeting chaired by Finance Minister Muhammad Aurangzeb, officials presented the Annual Consolidated Performance Report for commercial and non-commercial SOEs, revealing that while total revenues remained high, profitability plunged, and overall net losses ballooned compared with Rs 30.6 billion the previous year. Aggregate profits of profit-making entities declined by 13 %, and although losses among loss-making SOEs marginally shrank, the combined net outcome still swung sharply into the red.
The report also highlighted that a handful of large entities; especially the National Highway Authority (NHA) and multiple power distribution companies; accounted for disproportionate financial drains due to structural inefficiencies, high depreciation and financing costs, and costly public-service mandates. Government support to SOEs rose to around Rs 2.078 trillion, mainly for clearing circular debt, while total SOE debt climbed to roughly Rs 9.57 trillion, with unfunded pension liabilities of about Rs 2 trillion cited as a long-term risk
Without decisive reforms; especially around governance, cost recovery and debt rationalization; the SOE sector’s growing losses could continue to weigh heavily on Pakistan’s fiscal health and public finances.
