SOEs cost Pakistan Rs6tr in 10 years: FM

December 05, 2024 (MLN): Finance Minister Muhammad Aurangzeb has unveiled staggering losses of Rs6 trillion incurred by Pakistan over the past decade, with state-owned enterprises (SOEs) alone contributing to Rs2.2 billion in annual losses.

Addressing the alarming situation, the minister highlighted that privatizing SOEs could slash 50% of the national budget burden, offering a pathway to fiscal stability.

Speaking at the launch of ‘ESG Sustain Pakistan's premier Sustainability centric online platform’, the minister praised the Securities and Exchange Commission of Pakistan (SECP) for its efforts in promoting digitization and data sharing. 

The finance minister stated, “The private sector has to ensure that it is helping the government in this journey. If not, the private sector has to leave the country”.

The government is there to provide a policy framework and policy continuity, he added.

Muhammad Aurangzeb declared, "The government has no business being in business," urging the private sector to drive economic reforms.

Addressing sustainability, the minister highlighted progress since COP29, when Pakistan launched its Climate Finance Strategy in Baku.

“It’s broader than the environment,” he noted, stressing inclusivity, linking environmental, social, and governance (ESG) goals with gender parity and equitable growth.

The minister shared an example from his previous role, where female workforce participation grew from 4% to 22% and is expected to rise further by 2025.

Aurangzeb praised leaders in sustainability reporting and urged others to publicize their progress. "Many great initiatives are happening, but they are hidden”, said the finance minister.

ESG platform is expected to serve as an equalizer, allowing all institutions, regardless of size, to showcase their achievements and learn from each other.

The minister also highlighted the need to address Pakistan's two existential problems including population growth and climate change, as APP reported.

"Digital is the only way forward.", he added as digital transformation is central to scaling up reforms, with plans to leverage digital channels for avenues and governance improvements.

Economic challenges, including taxation, energy reforms, and privatization, remain top priorities.

The ministry pledged to publicly share updates on its Corporate Social Responsibility (CSR) initiatives to address these critical issues.

“It’s broader than the environment,” he noted, emphasizing inclusivity, gender equity, and sustainable growth as central ESG components.

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