Finance Division clarifies Rs10.1tr SOE debt figure, says fresh borrowing stood at Rs164bn

Profit by Pakistan Today reported that the Finance Division has explained the Rs10.1 trillion liability figure for federal SOEs, saying it is a consolidated stock of interest-bearing debt rather than new borrowing. Additional loans in the period totalled about Rs164 billion, the ministry said. The clarification was issued after a media story raised concerns about growing SOE debt.

The Rs10.1 trillion figure includes cash development loans of Rs2.098 trillion and foreign re-lent loans of Rs2.581 trillion. Bank and private loans total Rs3.102 trillion, while rollover costs and accumulated markup add up to Rs2.181 trillion. The remaining Rs135 billion covers other obligations such as lease liabilities. The ministry also said the rise from about Rs8.8 trillion to Rs10.1 trillion did not mean Rs1.3 trillion in fresh borrowing.

The ministry said the SBP's Rs2.954 trillion figure for public sector enterprise bank debt cannot be compared directly with the CMU number, as the two differ in scope and coverage. It called such a comparison methodologically incorrect, warning that it could create the impression of an equal amount of new borrowing. The broader CMU framework, according to the Finance Division, is designed to give the government and the Cabinet Committee on State-Owned Enterprises greater visibility into indebtedness and fiscal risks.