SOE Losses Cross Rs. 830 Billion in FY25 Despite Continued Government Support
Pakistan’s state-owned enterprises (SOEs) recorded combined losses of Rs. 832.8 billion in fiscal year 2024-25, according to a fresh report issued by the Ministry of Finance. Although the figures reflect a slight 2 percent improvement compared to the previous fiscal year, the overall financial burden remains substantial.
The latest data underscores persistent structural challenges within Pakistan’s public sector entities. Despite repeated government interventions and financial assistance, many SOEs continue to struggle with inefficiencies, debt accumulation, and operational constraints.
Among all entities, the National Highway Authority emerged as the largest loss-making organization. The authority reported losses amounting to Rs. 295 billion during FY25, highlighting mounting financial pressures in infrastructure and transport management.
Power distribution companies also contributed significantly to the overall deficit. The Quetta Electric Supply Company recorded losses of Rs. 112.7 billion, making it the worst-performing distribution company for the year. Close behind was the Peshawar Electric Supply Company, which posted losses of Rs. 92.7 billion.
Other regional power distributors also reported financial setbacks. The Sukkur Electric Power Company incurred losses of Rs. 25.3 billion, while the Lahore Electric Supply Company posted losses of Rs. 12.7 billion. Similarly, the Hyderabad Electric Supply Company recorded Rs. 13 billion in losses, and the Islamabad Electric Supply Company reported a comparatively lower deficit of Rs. 1.4 billion.
The continued losses across the power sector reflect deeper issues such as transmission inefficiencies, recovery shortfalls, circular debt, and governance challenges. Energy sector reforms have been discussed for years, yet tangible improvements remain gradual.
While the marginal reduction in aggregate losses offers a slight positive signal, the Rs. 832.8 billion deficit places ongoing strain on Pakistan’s fiscal framework. These losses often require government-backed guarantees, subsidies, and restructuring plans, increasing pressure on public finances.
Economic analysts argue that comprehensive restructuring, improved accountability, and privatization of select entities may be necessary to reduce recurring deficits. Without structural reforms, SOE losses could continue to weigh heavily on Pakistan’s economic recovery and long-term growth prospects.
As fiscal year 2025 concludes, policymakers face mounting pressure to accelerate reforms and enhance transparency. The performance of state-owned enterprises remains a critical factor in strengthening investor confidence and stabilizing Pakistan’s broader economic landscape.
