Pakistan’s loss-making SOEs bleed Rs342.8 billion as debt crosses Rs10 trillion

Profit by Pakistan Today reported that 23 loss-making state-owned enterprises booked combined losses of Rs342.8 billion in July to December 2025. That is roughly Rs2.8 billion per working day, according to the Finance Division's half-yearly review of federal SOEs. Losses were almost unchanged from Rs342.9 billion a year earlier, while total SOE debt, excluding sovereign guarantees, climbed 14% to Rs10.099 trillion.

The National Highway Authority posted the largest loss at Rs124.7 billion, with depreciation and financing costs on foreign-lent loans and cash development loans cited as key drivers. Quetta Electric Supply Company, Sukkur Electric Power Company and Pakistan Railways also recorded losses above Rs29 billion, while the report linked power distribution losses to technical losses, under-recoveries and operational inefficiencies. Government fiscal support jumped 31% to Rs804 billion, with equity injections up 190% to Rs224.6 billion, largely to clear power-sector circular debt owed to independent power producers.

Profitable SOEs earned Rs423.3 billion, led by OGDCL with Rs73 billion, followed by National Bank of Pakistan at Rs42.9 billion and Pakistan Petroleum Limited at Rs40.2 billion. Net fiscal flow shrank to Rs35.8 billion, down from Rs427 billion, and the Fiscal Efficiency Index fell from 1.64 to 1.04 times, close to the point where SOEs turn net consumers. Using IFRS and leaving out the gas sector's late payment surcharge, circular debt stood at Rs3.382 trillion in December 2025, against Rs3.929 trillion in June 2025.