Islamabad: Pakistan’s state-owned enterprises (SOEs) have reported a staggering combined loss of Rs5.89 trillion in the first half of the fiscal year 2024-25, according to the Ministry of Finance. The latest data reveals persistent financial mismanagement, particularly in the energy, infrastructure, and public services sectors, raising alarms over the country’s worsening fiscal health.
The National Highway Authority (NHA) emerged as the biggest loss-maker, with its cumulative deficit reaching Rs19.53 trillion, including an additional Rs153 billion in just six months. Power distribution companies (DISCOs) continued to bleed money, with QESCO losing Rs58.10 billion, SEPCO Rs29.60 billion, and PESCO Rs19.68 billion. The power sector alone contributes Rs2.4 trillion to Pakistan’s Rs4.9 trillion circular debt, further crippling the economy.
Other struggling entities include Pakistan Steel Mills, which posted a Rs15.60 billion loss, pushing its total deficit to Rs255.82 billion, and PASSCO, which lost Rs7 billion in the same period. Additionally, pension liabilities have ballooned to Rs1.7 trillion, compounding the financial burden on the government.
Despite a 3.75% increase in assets, SOEs saw only a marginal improvement in net equity, reaching Rs6.63 trillion. However, with revenues dropping by 8% and profits declining by 10%, experts warn that without urgent reforms, these losses will keep mounting, threatening Pakistan’s economic stability. The report underscores the need for privatization, better governance, and cost-cutting measures to prevent further damage to the national exchequer.