SOEs losses down Rs74bn in three years: FM

February 16, 2026 (MLN): The losses of state-owned enterprises (SOEs) have declined by about Rs74 billion over the past three years, which reflects reforms aimed at improving governance and reducing the fiscal burden on the exchequer, Finance Minister Muhammad Aurangzeb said during a televised press statement. 

He noted that SOE losses stood at Rs905 billion in 2023, narrowed to Rs851 billion in 2024, and further eased to Rs832 billion last year.

While profitable entities continue to generate earnings, their profitability has been affected despite operational improvements.

The minister said the performance report will now be presented regularly before parliament and the public to enhance transparency, a practice discontinued in 2019 but revived over the past two years after renewed data compilation.

He also criticized certain media outlets for disseminating inaccurate facts and indicated that appropriate action could be taken in light of the findings.

On the fiscal front, SOEs generated inflows of about Rs2.199 trillion against outflows of Rs2.078 trillion, highlighting the mixed financial impact on the government.

Mandatory external audits have been ordered, governance scorecards are being issued, and entities are now required to submit business plans to enable a forward-looking assessment.

He said the government has taken “bold decisions” to shut down loss-making institutions, often described as “white elephants,” where subsidies were vulnerable to leakages and corruption.

Departments such as the Pakistan Public Works Department and the Utility Stores Corporation are being closed, while PASSCO is also in the process of winding down.

Privatization remains a key pillar of the reform agenda. Progress has been reported on the sale of Pakistan International Airlines and First Women Bank Limited, alongside plans covering Zarai Taraqiati Bank Limited, House Building Finance Company, and five electricity distribution companies.

A total of 26 SOEs have already been handed to the Privatization Commission of Pakistan on the prime minister’s directives, with authorities signalling that the privatization drive will not stop there.

“These measures will help reduce the continued drain on public finances and improve efficiency,” the minister said, reiterating the government’s commitment to pursue privatization with speed and transparency.

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