23 State-Owned Enterprises Cost Pakistan Rs. 5.5 Trillion in 10 Years; PIA Alone Accounts for Rs. 700 Billion Loss
Islamabad:In a staggering revelation, it has been disclosed that **23 state-owned enterprises (SOEs)** in Pakistan have collectively inflicted a loss of **Rs. 5.5 trillion** (approximately **$5.19 billion**) on the national exchequer over the past **10 years**, with the **national airline PIA** alone responsible for **Rs. 700 billion** in losses.
The figures were presented by **Mohammad Ali**, Advisor to the Prime Minister on Privatization, during a meeting of the **National Assembly Standing Committee on Privatization**, chaired by **Farooq Sattar**. The data once again brings into focus the long-standing issues of **mismanagement** and **inefficiency** in Pakistan’s public sector and underscores the urgency for **privatization and accountability reforms**.
Mohammad Ali highlighted that the current state of these enterprises is not only **unsustainable** but is also an increasing **burden on taxpayers**.
### Massive Closures in Utility Stores Corporation
The committee was informed that a significant restructuring is underway in the **Utility Stores Corporation (USC)**. Out of 5,500 existing stores, only **1,500** will remain operational, with the rest either closed or considered for **privatization**.
More alarmingly, it was disclosed that **1,000 more stores will be shut down this month**, leading to the termination of hundreds of employees. So far, **2,237 USC employees** have already been laid off. Despite receiving **Rs. 38 billion** in subsidies last year, the USC was not allocated the **Rs. 60 billion** earmarked for the current fiscal year, worsening its financial state.
Farooq Sattar, chairing the session, stressed that while restructuring is necessary, **employee rights must be protected**. “Job security is a state responsibility,” he stated, cautioning that **the future of thousands of employees must not be compromised** in the process of reforms.
### Power Sector Losses and World Bank Consultations
The **Power Division** also briefed the committee, revealing that **three loss-making distribution companies**—**SEPCO**, **HESCO**, and **PESCO**—are in line for **privatization**, and consultations with the **World Bank** are ongoing.
This update has reignited the debate on the need to **restructure or privatize failing public institutions**, which continue to drain national resources without delivering corresponding public value. As the government grapples with a fragile economy, the push for transparency, efficiency, and accountability in the public sector has become more urgent than ever.
