Pakistan’s state-owned enterprises (SOEs) recorded cumulative losses of Rs. 832.8 billion in fiscal year 2024–25, according to a report issued by the Ministry of Finance, reflecting only a marginal 2 percent improvement compared to the previous year.
The report named the National Highway Authority as the biggest loss-making entity, with losses amounting to Rs. 295 billion during the fiscal year.
In the power sector, distribution companies continued to post heavy losses. Quetta Electric Supply Company reported losses of Rs. 112.7 billion, followed by Peshawar Electric Supply Company at Rs. 92.7 billion. Other distribution companies also remained in deficit, including Sukkur Electric Power Company with Rs. 25.3 billion in losses, Lahore Electric Supply Company with Rs. 12.7 billion, Hyderabad Electric Supply Company with Rs. 13 billion, and Islamabad Electric Supply Company with Rs. 1.4 billion.
The transport and industrial sectors also remained under strain. Pakistan International Airlines posted losses of Rs. 48.9 billion, while Pakistan Railways recorded Rs. 60.3 billion in losses. Pakistan Steel Mills reported losses of Rs. 26 billion, and Pakistan Post posted a deficit of Rs. 19.3 billion.
Despite the sizeable cumulative losses, the report highlighted that total SOE losses declined by 2 percent on a year-on-year basis, indicating a slight improvement in overall financial performance.
On the profitability side, state-owned enterprises generated a combined profit of Rs. 709 billion during the fiscal year, although this represented a 13 percent decline compared to the previous year. Oil and Gas Development Company Limited emerged as the most profitable entity with earnings of Rs. 170 billion, followed by Pakistan Petroleum Limited with Rs. 90 billion and the National Bank of Pakistan with Rs. 57 billion in profits.
The report also underscored the extent of government support provided to these enterprises. During the fiscal year, the government extended financial assistance amounting to Rs. 2,078 billion and issued sovereign guarantees worth Rs. 2,164 billion, highlighting the significant fiscal exposure associated with the SOE sector.
