Upcoming IMF review Pakistan can no longer delay SOE reform

Mettis Global published an analysis by economic analyst Shahid Anwar which argues that the focus has shifted from identifying underperforming state-owned enterprises (SOEs) to the cost of leaving them unchanged. The Finance Division's FY2025 aggregate report, cited in the piece, shows 25 loss-making SOEs posted combined losses of Rs832.8 billion. Profit-making SOEs earned Rs709.9 billion, yet the sector still ended with a net adjusted loss of Rs122.9 billion, up from Rs30.6 billion in FY2024.

Government support to SOEs climbed 37% to Rs2.078 trillion in FY2025, while SOE debt reached Rs9.571 trillion. The author adds unfunded pension liabilities of Rs2.030 trillion and government guarantees of Rs2.164 trillion, arguing that fiscal risk extends beyond annual profit and loss. Yet SOEs contributed Rs2.119 trillion to the government, leaving a reported net flow of Rs40.7 billion, so the concern centres on concentrated support rather than on all SOEs.

The piece ties these figures to the IMF fourth review of the Extended Fund Facility, scheduled for September 15, 2026, and proposes a multi-year plan setting yearly goals for losses, support and debt. It also suggests that each major SOE publish a short list of metrics covering finances, guarantees, reform milestones and management accountability. The article also cites the Pakistan International Airlines Corporation Limited (PIACL) deal, where management control passed to an investor group led by Arif Habib Corporation Limited after an initial closing in June 2026.