PSEs outstanding debt and liabilities remain stagnant

February 18, 2020 (MLN): The domestic debt and liabilities of the Public Sector Enterprises (PSEs), which stood at Rs1.6 trillion at the end of the last fiscal year (FY19) remained the same in the first quarter of the current fiscal year (FY20). This accounted for 3.7% of total GDP.

On a yearly basis, this figure rose by 19% YoY as in September 2018 outstanding debt stood at Rs 1.3 trillion.

Company-wise, a significant chunk of the PSEs debt can be attributed to Pakistan Internationa Airlines (PIA) whose outstanding debt amounted to Rs 151 billion at the end of the first quarter FY20, increased by a margin as it stood at Rs 150 billion at the end of FY19. Whereas, on a yearly basis, this figure jumped by 4% YoY against an outstanding amount of  Rs145 billion at the end of September 2018.

Water and Power Development Authority (WAPDA) contributed Rs 108 billion in the PSEs debt numbers which were 25% higher than the numbers reported in 1QFY20 i.e. Rs 86.4 billion.

In September 2018, WAPDA’s outstanding debt stood at Rs 131.7 billion. This suggests that WAPDA retired Rs 23.3 billion as debt payment in a year.

Oil and Gas Development Corporation (OGDC)’s outstanding debt increased by 5% to Rs 6.6 billion in the first three months of the FY20 against Rs 6.3 billion recorded in FY19. During one year from September 2018 to September 2019, OGDC’s outstanding debt burden grew by 40% YoY from Rs 4.3 billion.

With regards to Pakistan Steel Mill (PSM), the outstanding debt burden remained the same at Rs 43.2 billion over the year.

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