Losses of Over 15 State-Owned Enterprises Exceed 59 Trillion Rupees, Report Reveals
The combined losses of more than 15 state-owned enterprises (SOEs) in Pakistan have surpassed a staggering 59 trillion rupees, according to a report released by the Ministry of Finance.
The report highlights that, in the first six months of the previous financial year, the deficit of these institutions increased by 3.45 trillion rupees. Additionally, pension liabilities have risen to 17 trillion rupees.
Among the most significant losses, the National Highways Authority (NHA) tops the list with a loss of 1.953 trillion rupees. Following closely is Quetta’s electricity distribution company, QESCO, with a deficit of 770.6 billion rupees, and Peshawar’s PESCO, which has incurred a loss of 684.9 billion rupees.
The report also indicates a persistent trend of rising losses in electricity distribution companies, particularly during the past six months. The circular debt of these institutions has soared to 49 trillion rupees, with the electricity sector accounting for 24 trillion rupees of this amount.
From June 2024 to December 2024, the NHA reported a loss of 153.27 billion rupees. In the same period, QESCO’s deficit was recorded at 58.1 billion rupees, while SEPCO (Southeast Electric Power Company) posted a loss of 29.6 billion rupees. Overall, SEPCO’s total loss stands at 472.99 billion rupees.
The Pakistan Steel Mills recorded a loss of 1.56 billion rupees for the last six months, with the overall deficit reaching 25.58 billion rupees. Similarly, the Pakistan Telecommunication Company Limited (PTCL) reported a loss of 719 million rupees in the past six months, bringing its total deficit to 4.357 billion rupees.
Additionally, the Pakistan Agriculture Storage and Services Corporation incurred a loss of 7 billion rupees for the last six months, with its cumulative deficit now standing at 11.13 billion rupees.
This growing financial burden on state-owned enterprises is raising concerns over fiscal management and the need for reforms in these institutions to reduce losses and improve efficiency.
