A recent report issued under the conditions of the International Monetary Fund (IMF) has raised alarm over the dire financial state of Pakistan’s state-owned enterprises (SOEs), revealing cumulative losses exceeding Rs59 trillion.
Compiled by the Ministry of Finance, the report outlines staggering fiscal liabilities across more than 15 government-run institutions, with mounting debts and pension obligations threatening the country’s economic stability.
According to the report:
Pension-related liabilities have surged to Rs17 trillion.
Circular debt, primarily involving public sector entities, has ballooned to Rs49 trillion, with the power sector alone accounting for Rs24 trillion of this amount.
Several major SOEs have reported alarming losses:
National Highway Authority (NHA):
Total accumulated losses of Rs1,953 billion.
Quetta Electric Supply Company (QESCO):
Losses of Rs58.1 billion in the last six months.
Karachi Electric Supply Company (KESCO):
Cumulative losses amount to Rs770.6 billion.
Peshawar Electric Supply Company (PESCO):
Reported Rs684.9 billion in losses.
Sukkur Electric Power Company (SEPCO):
Six-month loss of Rs29.6 billion, with total losses reaching Rs472.99 billion.
Pakistan Steel Mills (PSM):
Losses of Rs15.6 billion in the past six months; overall losses stand at Rs255.82 billion.
Pakistan Telecommunication Company Ltd (PTCL):
Six-month losses of Rs7.19 billion; cumulative losses now Rs43.57 billion.
The report notes that SOEs collectively added Rs3.45 trillion in fresh losses in just the first six months of the previous fiscal year, underscoring the scale and pace of fiscal deterioration.
