Federal SOEs deliver Rs35bn positive fiscal flow in H1FY26

September 15, 2026 (MLN): Federal state-owned enterprises delivered a positive net fiscal flow of Rs35 billion in favour of the government during July-December 2025, as SOE contributions to the exchequer outpaced government support extended to the sector.

According to a review presented before the Cabinet Committee on State-Owned Enterprises (CCoSOEs), government support to SOEs during the first half of FY2025-26 stood at Rs804bn, while SOE contributions to the government amounted to Rs839bn.

The performance assessment, covering the Bi-Annual Performance of Federal State-Owned Enterprises for H1FY26, showed profitable SOEs generated aggregate profits of Rs423.3bn, while loss-making entities recorded aggregate losses of Rs342.8bn during the period.

The Central Monitoring Unit (CMU) of the Finance Division presented the detailed assessment, covering financial and operational performance, profitability and losses, fiscal flows, implementation of approved business plans, governance, financial reporting and progress against key performance targets.

Areas identified as requiring sustained attention included circular debt and other fiscal risks, operational weaknesses in parts of the power and infrastructure sectors, corporate governance gaps, and the need for stronger board effectiveness and accountability.

The committee was also given a demonstration of the CMU's integrated digital reporting and analytics platform for SOEs, which centralizes SOE data and enables standardized reporting, digital dashboards and financial and operational analytics.

Separately, the committee approved appointment of Independent Directors against vacant positions on the Board of Printing Corporation of Pakistan (PCP), and approved the Chairman of the Board of Directors of the Indigenous Research and Development Agency (IRADA) in accordance with the State-Owned Enterprises Policy, 2023.

The committee also approved nominations of Independent Directors for the Board of Management of Pakistan State Oil Company Limited (PSO), in accordance with the State-Owned Enterprises (Ownership and Management) Policy, 2023.

An amendment to the SOEs Policy, 2023 regarding the monitoring mechanism for IFRS implementation by SOEs was also approved, providing that IFRS applicable to SOEs shall mean the Financial Reporting Standards notified by SECP, including modifications or exemptions granted by SECP to companies in general, while SOEs regulated by the State Bank of Pakistan will follow the statutory financial reporting framework prescribed by SBP.

The committee further discussed measures to strengthen the selection and appointment process for directors, address delays in board appointments, and enhance the pool of qualified candidates through stronger capacity-building and vetting mechanisms.

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