Finance Division says profitable entities earned Rs423bn in H1

Mettis Global reported that the Finance Division has rejected the view that a drop in net fiscal flows from state-owned enterprises signals weaker financial performance. It argued that these two measures track different things, so performance should be judged on profit and a wider set of operating and financial metrics. Profit-making state firms together earned Rs423.3 billion over the first half of FY2025-26, whereas the loss-makers lost Rs342.8 billion in total.

Receipts from these entities reached Rs839.8bn while payments totalled Rs804bn, leaving a net gain of Rs35.8bn for the state. Government outlays climbed mainly due to capital injections and financing tied to restructuring and circular-debt management. Dividend receipts from SOEs rose 26%, and tax collections from them grew 10%.

Utility Stores Corporation has stopped running, while Pakistan Agricultural Storage and Services Corporation is being closed down. First Women Bank Limited and Pakistan International Airlines have been sold to private owners. Nine power distribution companies, including the Lahore Electric Supply Company and the Multan Electric Power Company, are in the privatisation programme at different stages. The government says its wider programme aims to shrink the SOE footprint, sharpen commercial discipline and transparency, and reduce fiscal risk.