Pakistan’s Ministry of Finance has published a detailed report revealing huge financial losses in state-owned enterprises (SOEs). This report was released under the conditions set by the IMF to ensure transparency and accountability. According to the report, more than 15 major government-owned companies recorded combined losses exceeding Rs5,893 billion.
The losses grew sharply in just six months, showing a worsening financial situation. Circular debt, a major concern for Pakistan’s economy, has ballooned to Rs49 trillion. The power sector alone contributed Rs2.4 trillion, while the gas and petroleum sectors added Rs2.5 trillion to this debt. This growing circular debt is putting severe pressure on the country’s fiscal health.
Among the worst performers are electricity distribution companies (DISCOs). Quetta Electric Supply Company (QESCO) reported a staggering six-month loss of Rs770.6 billion, while Peshawar Electric Supply Company (PESCO) suffered total losses of Rs684.9 billion. Other companies, such as Sukkur Electric Supply Company, also showed significant losses. These figures reflect ongoing inefficiencies, high line losses, and poor bill recovery rates in the energy sector.
The report further reveals losses in other state-owned firms, including Pakistan Steel Mills, which faced a six-month loss of Rs15.6 billion, increasing its total accumulated losses to Rs255.82 billion. Pakistan Telecommunication Company Limited (PTCL) and Pakistan Agriculture Storage and Services Corporation (PASSCO) also posted substantial losses.
The IMF has stressed the need for Pakistan to implement strong reforms in these state-owned enterprises. These reforms aim to improve governance, reduce financial waste, and stabilize the economy. Pakistan’s government is under pressure to meet IMF conditions to secure further financial support and restore investor confidence.
This report highlights the critical economic challenges Pakistan faces. The government and the IMF will continue discussions focused on ensuring fiscal discipline and improving the performance of state-owned firms to support sustainable growth.akistan has surpassed the IMF dollar reserve target, signaling strong economic progress. For full details, read more at Pakistan Surpasses IMF Dollar Reserve Target Amid Economic Gains. This milestone reflects improving foreign reserves and growing investor confidence.
