State-Owned Enterprises (SOEs) in Pakistan recorded a sharp rise in losses during the financial year 2024–25, with net losses increasing by more than 300 percent compared to the previous year.
According to official figures shared in a meeting of the Cabinet Committee on State-Owned Enterprises, SOEs posted a net loss of Rs. 122.9 billion in FY25, compared to a net loss of Rs. 30.6 billion in FY24. This represents an increase of around 301 percent year on year.
The meeting was held under the chairmanship of Muhammad Aurangzeb and reviewed the Annual Consolidated Performance Report of commercial and non-commercial SOEs for FY 2024–25. The report was prepared by the Central Monitoring Unit (CMU) of the Finance Division.
Officials were informed that the total revenues of SOEs stood at approximately Rs. 12.4 trillion during the year. However, revenues declined mainly due to lower profitability in the oil sector following a drop in international oil prices.
Aggregate profits of profit-making SOEs fell by 13 percent to Rs. 709.9 billion, compared to Rs. 820.7 billion in the previous year. While losses of loss-making SOEs showed a slight improvement and declined by around 2 percent to Rs. 832.8 billion, the overall impact still resulted in a much higher net loss.
The committee was told that losses remain heavily 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 be major contributors due to structural inefficiencies, high financing costs, and the non-commercial nature of some public service operations.
Government financial support to SOEs increased to Rs. 2,078 billion during FY25, mainly due to higher equity injections aimed at addressing circular debt. At the same time, inflows from SOEs to the government rose to Rs. 2,119 billion through higher dividends, taxes, and interest income.
The debt burden of SOEs also increased, with total debt reaching Rs. 9.57 trillion. In addition, unfunded pension liabilities across SOEs were estimated at around Rs. 2 trillion, which officials described as a major long-term risk.
The chair appreciated efforts by the Central Monitoring Unit to improve transparency, strengthen financial reporting, and create a digital database aligned with international standards. He said these steps provide a strong foundation for policy reforms and better oversight.
The committee emphasized the need for stricter enforcement of audits, timely adoption of IFRS-based reporting by February 2026, and realistic business plans for loss-making entities. It directed that the report be published and shared with relevant ministries to guide reform measures and improve accountability across the SOE sector.
