The Pakistan SOE losses for FY25 show a sharp deterioration in financial performance, with net losses rising 300% from the previous year. According to the finance ministry’s latest report, 25 State Owned Enterprises (SOEs) posted an aggregate loss of Rs832 billion in FY2025.
Net losses climbed to Rs 123 billion in FY25, up from Rs 30.6 billion in FY24. The data highlights continued financial stress across key public-sector entities.
The largest loss was recorded by the National Highway Authority (NHA), which reported Rs294.9 billion in losses. Power distribution companies also posted heavy deficits, including Quetta Electric Supply Company (Rs112.7 billion) and Peshawar Electric Supply Company (Rs92.7 billion).
Pakistan Railways reported losses of Rs60.3 billion, while PIA Holding Company Limited posted Rs48.9 billion in losses. Other major loss-makers included National Power Parks Management Company, Neelum-Jhelum Hydropower Company, and Pakistan Steel Mills.
Several smaller entities also reported deficits, including the Pakistan Post Office, the Hyderabad Electric Supply Company, the Lahore Electric Supply Company, and the Pakistan Television Corporation.
Pakistan SOE Losses FY25
Despite widespread losses, profit-making SOEs posted an aggregate profit of Rs709 billion in FY2025. However, earnings were heavily concentrated among a limited number of entities.
Oil and Gas Development Company Limited led with Rs169.9 billion in profits, followed by Pakistan Petroleum Limited and the National Bank of Pakistan. The Water and Power Development Authority and Government Holdings (Private) Limited also contributed significantly.
According to the report, nearly 90% of total profits came from a handful of large SOEs. These entities effectively offset part of the losses generated by the rest of the sector.
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The overall balance sheet presents mixed signals. Total equity increased by 7%, rising from Rs5,865.2 billion in FY2024 to Rs6,245.7 billion in FY2025. This growth was largely driven by recapitalisation and equity injections, especially in the power sector, to address circular debt.
Meanwhile, total liabilities decreased by 3%, from Rs32,570.5 billion to Rs31,742.4 billion. Total assets remained relatively stable, with only a marginal 1% year-on-year decline.
Pakistan Government’s Fiscal Support
Government fiscal support to SOEs increased to Rs2,078.5 billion in FY2025, a 37% rise from the previous year.
Equity injections totalled Rs728.9 billion, mainly linked to clearing the power-sector circular debt and payments to independent power producers. Government loans to SOEs also increased by 34%, reaching Rs354.1 billion.
At the same time, grants declined by 27%, while subsidies dropped by 7%. Sovereign guarantees rose significantly, increasing from Rs1,419.0 billion to Rs2,164.0 billion.
In FY2025, the federal government collected Rs12,970 billion in tax revenue. Approximately Rs2,078 billion, around 16% of total collections, was channelled back to SOEs through subsidies, loans, equity injections, and grants.
The figures underline the scale of public-sector financial exposure and the growing reliance on fiscal support to sustain key enterprises.
