Losses under SOEs hit Rs408bn, accumulated to Rs5.9tr

December 30, 2024 (MLN): Pakistan’s State-Owned Enterprises (SOEs) losses hit a staggering loss of Rs408 billion, bringing accumulated losses since 2014 to Rs5.9 trillion.

The aforementioned information was revealed in a report titled “Federal State-Owned Enterprises Bi-annual Report on SOEs Fiscal Year 2024 (6 Months–July 2023 to December 2023)", released by the Central Monitoring Unit (CMU) of the Finance Division.

The report also noted that SOEs contributed Rs200bn in taxes, reflecting a 14% decrease compared to the previous six months.

Non-tax revenues, which include sales taxes, royalties, and levies, amounted to Rs349bn, representing a 27% decline.

Several SOEs incurred significant losses during the first six months of fiscal year 2024.

The largest loss was reported by the National Highway Authority (NHA) at Rs151.3bn, followed by Quetta Electric Supply Company (QESCO) with Rs56.2bn, and Pakistan International Airlines (PIA) with Rs51.7bn. 

Other notable entities with significant losses included Peshawar Electric Supply Company (PESCO), which reported a loss of Rs39bn, and Pakistan Railways, which reported a loss of Rs 23.6bn.

Additional SOEs such as Sukkur Electric Supply Company (SEPCO) and Pakistan Steel Mills Corporation (Private) Limited reported considerable losses of Rs20.9bn and Rs14.4bn, respectively.

Islamabad Electric Supply Company (IESCO) also reported significant losses amounting to Rs12.1bn.

The Central Power Generation Company Limited (GENCO-II) reported a loss of Rs8.3bn.

Other loss-making entities include Pakistan Telecommunication Company Ltd (PTCL) with Rs7.7bn and Pakistan Post Office with Rs5.5bn.

Several electric supply companies are also facing losses, such as Hyderabad Electric Supply Company (HESCO) with Rs5.2bn and Tribal Electric Supply Company (TESCO) with Rs2.6bn.

Additionally, Utility Stores Corporation of Pakistan (USCP) contributed a Rs2.1bn loss, adding to the cumulative losses and highlighting the widespread inefficiencies and operational challenges within the SOE sector.

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