Pakistan SOEs post Rs123bn net loss in FY25

January 10, 2026 (MLN): Pakistan’s state-owned enterprises recorded a net loss of Rs122.9 billion in FY2024-25, sharply wider than the Rs30.6bn loss a year earlier.

Despite lower losses at loss-making entities, according to an official consolidated performance report approved for publication by the Cabinet Committee on State-Owned Enterprises.

The Cabinet Committee, chaired by Finance Minister Senator Muhammad Aurangzeb, reviewed and cleared the Annual Consolidated Performance Report of Commercial and Non-Commercial SOEs for FY2024-25, prepared by the Central Monitoring Unit of the Finance Division, according to the press release.

The report provides a portfolio wide assessment of financial and operational performance, fiscal flows, debt exposure, governance and reform priorities.

According to the report, aggregate revenues of SOEs stood at around Rs12.4tr during the year, declining mainly due to weaker profitability in the oil sector amid lower international oil prices.

Profits of profit-making SOEs fell 13% year-on-year to Rs709.9bn, while aggregate losses of loss-making entities improved marginally, declining about 2% to Rs832.8bn.

 The combination resulted in a significantly higher net loss for the overall SOE portfolio.

Losses remained concentrated in a small number of entities, particularly in the transport and power distribution sectors.

The National Highway Authority and several power distribution companies continued to account for a large share of losses, showing structural inefficiencies, high depreciation and financing costs, and the non-commercial nature of certain public service obligations.

SOEs were classified into green, amber and red categories based on financial sustainability to guide reform prioritisation.

Fiscal support to SOEs increased to Rs2.08tr in FY2024-25, largely due to higher equity injections aimed at clearing circular debt, while subsidies declined modestly.

Inflows from SOEs to the government rose to Rs2.12tr, supported by higher dividends, tax payments and interest income on government lending, partially offsetting the fiscal burden.

The report showed total SOE debt rising to Rs9.57tr, including domestic and foreign loans, bank borrowings and accrued interest.

Unfunded pension liabilities across SOEs were estimated at around Rs2tr, highlighting a significant long-term fiscal risk.

Guarantees and other off-balance-sheet obligations stood at Rs2.16tr.

Committee members stressed the need for stricter enforcement of audit completion, timely transition to IFRS-based financial reporting by February 2026, and more realistic business plans for chronically loss-making entities.

The committee directed that the findings be shared with relevant ministries and that progress on audits, governance reforms, debt rationalisation and fiscal risk containment be reviewed regularly.

The Cabinet Committee also approved the appointment of independent directors to the boards of several power and energy sector entities, including GEPCO, JPCL, EIDMC, ISMO, IESCO and TESCO, as part of broader governance reforms in the SOE sector.

The approval and publication of the consolidated report came as the government seeks to contain fiscal risks from state-owned enterprises, a key concern for investors and lenders monitoring Pakistan’s public finances and reform trajectory.

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