During fiscal year 2024–25, state-owned enterprises (SOEs) incurred a net loss of Rs 122.9 billion, which is significantly higher than the net loss of Rs 30.6 billion recorded in the previous fiscal year.
According to sources, this was disclosed during a meeting of the Cabinet Committee on State-Owned Enterprises chaired by Federal Minister for Finance Senator Muhammad Aurangzeb. The meeting reviewed the performance of state-owned entities, during which participants reaffirmed their commitment to transparency and structural reforms.
The meeting was presented with the Annual Consolidated Performance Report for FY 2024–25 of commercial and non-commercial SOEs, prepared by the Central Monitoring Unit (CMU) of the Ministry of Finance.
In a presentation by CMU Director General Majid Soofi, a comprehensive 360-degree review of SOEs’ performance was shared, covering financial and non-financial performance, government support and fiscal flows, SOEs’ contribution to the national exchequer, debt position, corporate governance and compliance status, review of business plans, and future strategy under the SOEs Act 2023.
The committee was informed that during FY 2024–25, total revenue of SOEs stood at approximately Rs 12.4 trillion. The decline was mainly attributed to reduced profitability in the oil sector due to lower global oil prices. The combined profit of profitable SOEs declined by 13 percent to Rs 709.9 billion, compared to Rs 820.7 billion last year, while the total losses of loss-making entities showed an improvement of around 2 percent, amounting to Rs 832.8 billion.
Sources said the committee was told that losses were largely concentrated in a few entities, particularly in the transport and power distribution sectors. The National Highway Authority and several power distribution companies remained major contributors to losses due to structural issues, high depreciation, financial costs, and the non-commercial nature of certain public service obligations.
The committee was also briefed on the classification of SOEs into green, amber, and red categories based on financial sustainability, to prioritize reforms and decision-making.
Regarding fiscal support, the committee was informed that total government support to SOEs increased to Rs 2,078 billion during FY 2024–25, mainly due to equity injections to address circular debt, while subsidies witnessed a slight decline. In contrast, inflows from SOEs to the government increased to Rs 2,119 billion, including higher dividends, tax receipts, and interest income on government lending.
The committee also conducted a detailed review of SOEs’ debt profile. Overall SOE debt rose to Rs 9.57 trillion, including cash development loans, foreign relent loans, bank borrowings, and accrued interest.
In addition, unfunded pension liabilities of SOEs were estimated at approximately Rs 2 trillion, which were termed a major inherited fiscal risk. Guarantees and other off-balance-sheet liabilities were reported at Rs 2.16 trillion.
According to sources, the chair commended the Central Monitoring Unit for improving transparency, consolidating financial information in line with IFRS, and establishing a digital database, which is supporting evidence-based decision-making. He said these advancements are helping improve oversight and risk identification in areas such as fiscal flows, debt mapping, and pension liabilities.
The finance minister emphasized that these improvements provide a credible foundation for policy actions and sustained reforms, reiterating the government’s commitment to enhancing SOE governance, ensuring accountability, and making them financially sustainable and operationally efficient.
Committee members stressed the need for timely completion of audits in accordance with the SOEs Act 2023 and the transition to IFRS-based reporting by February 2026. They also highlighted the importance of realistic business plans, sectoral consultations, loss-reduction strategies, and strict budgetary constraints for consistently loss-making entities.
The cabinet committee directed that the findings of the report be shared with relevant ministries to strengthen reform measures, while progress on audits, governance reforms, debt restructuring, and mitigation of fiscal risks should be reviewed regularly.
The committee approved the publication of the Annual Consolidated Performance Report, terming it an important step toward transparency, accountability, and effective policymaking in the management of state-owned enterprises.
Sources further said that earlier in the meeting, approval was also granted for the appointment of independent directors in Gujranwala Electric Power Company (GEPCO), Jamshoro Power Generation Company Limited (JPCL), Energy Infrastructure Development and Management Company (EIDMC), Independent System and Market Operator (ISMO), Islamabad Electric Supply Company (IESCO), and Tribal Areas Electric Supply Company (TESCO).
The meeting was attended by Federal Minister for Energy Sardar Awais Ahmed Khan Leghari, Federal Minister for Science and Technology Khalid Hussain Magsi, Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, Federal Minister for Commerce Jam Kamal Khan, Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry, along with secretaries and senior officials from relevant ministries, divisions, and regulatory authorities.
