Pakistan’s government entities reported a total deficit of Rs 122.9 billion in the fiscal year 2024-25, marking a 300 percent increase from last year’s Rs 30.6 billion loss, according to the Federal Cabinet Committee on State-Owned Enterprises.
The annual report, prepared by the Central Monitoring Unit of the Ministry of Finance, reviewed both commercial and non-commercial government entities. It evaluated financial performance, governance, debt levels, audits, business plans, and government support.
During FY 2024-25, these government entities earned Rs 12.4 trillion in total income. However, declining global oil prices reduced profits in the energy sector. Profitable institutions saw profits fall by 13 percent to Rs 709.9 billion, while losses of loss-making entities slightly declined by 2 percent to Rs 832.8 billion.
Sectors Driving Losses
The largest losses came from transport and power distribution, including the National Highway Authority and several power companies. Structural inefficiencies, high financial costs, and public-service responsibilities limited profitability.
The Cabinet Committee plans to classify government entities into green, amber, and red categories to prioritize reforms and financial support based on sustainability.
Government Support and Long-Term Risks
Government support increased to Rs 2,078 billion, mainly through equity injections to reduce circular debt. Funds collected from government entities—including taxes, dividends, and interest on loans—totaled Rs 2,119 billion.
Outstanding loans of government entities reached Rs 9,570 billion, and unfunded pension liabilities stood at Rs 2,000 billion, representing major long-term financial risks. Off-balance sheet liabilities and government guarantees added another Rs 2,160 billion.
Federal Finance Minister Muhammad Aurangzeb praised the CMU for enhancing transparency through IFRS-based reporting and digital databases. He emphasized timely audits, full IFRS adoption by February 2026, and strict financial discipline for persistently loss-making government entities.
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The committee also approved the appointment of independent directors for several energy companies, including Gujranwala Electric Power Company, Jamshoro Power Generation Company, Islamabad Electric Supply Company, and Tribal Areas Electric Supply Company.
