Pakistan's state-owned enterprises incur Rs5.89tr in losses: report

ISLAMABAD: A recent report revealed staggering financial losses across Pakistan’s government institutions, with the cumulative deficit of over 15 state-owned enterprises exceeding Rs. 5,900 billion.

According to the Ministry of Finance, the total losses of these institutions have reached Rs. 5,893.18 billion, with outstanding pension liabilities amounting to Rs. 1,700 billion.

The National Highway Authority (NHA) reported a cumulative deficit of Rs. 1,953 billion, with losses of Rs. 153.27 billion incurred between June and December 2024 alone.

The power sector also faced significant financial strain, with the circular debt of state institutions reaching Rs. 4,900 billion, of which Rs. 2,400 billion is attributed to the electricity sector.

The report highlighted a persistent increase in losses for power distribution companies (DISCOs) over the past six months.

Also read: State Bank of Pakistan to launch pilot for digital currency, says governor

Among the DISCOs, K-Electric reported losses of Rs. 770.6 billion, while Peshawar Electric Supply Company (PESCO) recorded a cumulative deficit of Rs. 684.91 billion, including Rs. 19.68 billion in losses over the past six months. Quetta Electric Supply Company (QESCO) incurred a six-month loss of Rs. 58.1 billion, with its total deficit reaching Rs. 472.99 billion. Similarly, Sukkur Electric Power Company (SEPCO) reported a six-month loss of Rs. 29.6 billion, contributing to its overall deficit of Rs. 472.99 billion.

Other institutions also faced significant financial challenges. Pakistan Steel Mills recorded a six-month loss of Rs. 15.6 billion, bringing its cumulative deficit to Rs. 255.82 billion. The Pakistan Telecommunication Company Limited (PTCL) reported a six-month loss of Rs. 7.19 billion, with its total deficit standing at Rs. 43.57 billion.

The report noted that the overall losses of state-owned enterprises increased by Rs. 345 billion in the first half of the last fiscal year.