State-owned units' net fiscal flow plunges 91%

Financial health at state-owned enterprises weakened further in the first half of FY2025-26, according to The Express Tribune. Government backing for these ailing firms climbed 31%, reaching Rs804 billion over six months, while their payments to the state fell 20%. The Cabinet Committee on State-Owned Enterprises reviewed the numbers on Monday under Finance Minister Muhammad Aurangzeb.

The government's net gain from these firms dropped 91%, to Rs35 billion in July-December 2025 from Rs427 billion a year before. The decline reflected more cash support and fewer payments into state coffers. Because no comparative figures were released, The Express Tribune checked the official numbers against a publicly available ministry report.

The committee also approved an amendment to the SOEs Policy, 2023, under which IFRS for these entities would mean the standards notified by SECP, including any exemptions it grants. The Central Monitoring Unit opposed energy sector exemptions from IFRS 9 and 14, arguing they would weaken transparency and conceal fiscal risks. The ministry said the committee stressed measurable performance targets and timely corrective action in weak entities.