Pakistan’s state-owned enterprises (SOEs) recorded staggering combined losses of Rs. 832.8 billion in fiscal year 2024-25, according to a Ministry of Finance report. Although losses declined slightly by 2 percent compared to last year, the overall financial burden remains alarmingly high despite heavy government backing.
The report identified the National Highway Authority (NHA) as the biggest loss-making entity, posting Rs. 295 billion in losses during FY25.
Among power distribution companies, Quetta Electric Supply Company led losses with Rs. 112.7 billion, followed by Peshawar Electric Supply Company at Rs. 92.7 billion. Other loss-making DISCOs included Sukkur Electric Power Company (Rs. 25.3 billion), Lahore Electric Supply Company (Rs. 12.7 billion), Hyderabad Electric Supply Company (Rs. 13 billion), and Islamabad Electric Supply Company (Rs. 1.4 billion).
The transport sector also struggled. Pakistan International Airlines reported Rs. 48.9 billion in losses, while Pakistan Railways posted Rs. 60.3 billion in losses. Pakistan Steel Mills recorded Rs. 26 billion in losses and Pakistan Post reported Rs. 19.3 billion in losses.
Despite heavy aggregate losses, some state-owned enterprises remained profitable. Total combined profit stood at Rs. 709 billion, though this reflected a 13 percent year on year decline.
Oil and Gas Development Company Limited emerged as the most profitable entity with Rs. 170 billion in earnings, followed by Pakistan Petroleum Limited with Rs. 90 billion and National Bank of Pakistan with Rs. 57 billion.
The government extended Rs. 2,078 billion in financial support to SOEs during FY25. Additionally, sovereign guarantees worth Rs. 2,164 billion were issued, highlighting the significant fiscal exposure tied to the SOE sector.
The figures underscore the urgent need for structural reforms, improved governance, and privatization efforts to reduce the growing burden on the national exchequer.