Islamabad: The Ministry of Finance has raised serious concerns over the mounting losses faced by state-owned enterprises (SOEs), which have now crossed a staggering Rs 5.9 trillion. According to its latest report, these losses recorded a sharp increase in just the first half of the last fiscal year, placing additional pressure on Pakistan’s already struggling economy.
The report points out that the National Highway Authority (NHA) is the worst affected, with losses amounting to Rs 1.953 trillion. It is followed by the Quetta Electric Supply Company (QESCO), which recorded losses of Rs 770.6 billion, while the Peshawar Electric Supply Company (PESCO) reported a deficit of Rs 684.9 billion. This trend reflects a growing financial crisis within the power distribution sector in particular.
Another worrying aspect highlighted by the ministry is the steep rise in pension liabilities, which have now reached Rs 1.7 trillion. The report also reveals that circular debt continues to climb at an alarming rate, currently standing at Rs 4.9 trillion, with the power sector alone contributing Rs 2.4 trillion to this figure.
Breaking down the most recent six-month data, NHA suffered a fresh loss of Rs 15.3 billion. During the same period, QESCO posted losses of Rs 5.8 billion, while Sui Northern Gas Pipelines Limited (SNGPL) and Pakistan Steel Mills also remained in deep financial trouble. Meanwhile, Pakistan Telecommunication Company Limited (PTCL) reported a six-month loss of Rs 719 million, pushing its total losses to Rs 4.3 billion.
The Finance Ministry has warned that the financial condition of these government institutions remains extremely fragile. It has called for immediate reforms to reduce losses and restore the financial health of these organisations, cautioning that if decisive steps are not taken, these deficits could further exacerbate Pakistan’s economic woes in the coming years.
