Pakistan’s state-owned enterprises have accumulated staggering financial losses exceeding Rs. 5,900 billion, according to an official Ministry of Finance report. The alarming figures reveal systemic challenges across 15 major government institutions, with the power sector and National Highway Authority (NHA) bearing the brunt of the deficits.
The NHA emerges as the single largest loss-making entity with a cumulative deficit of Rs. 1,953 billion, including Rs. 153.27 billion in losses during just the first half of FY2024-25. Meanwhile, the power sector’s circular debt has ballooned to Rs. 4,900 billion, with electricity distribution companies alone accounting for Rs. 2,400 billion of this burden.
Among power distributors, K-Electric leads with Rs. 770.6 billion in losses, followed closely by Peshawar Electric Supply Company (PESCO) at Rs. 684.91 billion. Quetta Electric Supply Company (QESCO) and Sukkur Electric Power Company (SEPCO) have each amassed deficits exceeding Rs. 470 billion, with recent six-month losses ranging between Rs. 29-58 billion.
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The report highlights Pakistan Steel Mills’ Rs. 255.82 billion deficit and Pakistan Telecommunication Company Limited’s (PTCL) Rs. 43.57 billion shortfall. Most concerning is the Rs. 345 billion increase in combined losses during the first half of the fiscal year, indicating accelerating financial deterioration.
Separately, the government faces a Rs. 1,700 billion pension liability crisis, compounding the operational deficits. This dual burden of current losses and future obligations raises serious questions about the sustainability of Pakistan’s public sector enterprises.
Financial analysts warn these losses directly impact Pakistan’s fiscal stability, with the accumulated deficits equivalent to approximately 15% of the country’s GDP. The consistent six-month deterioration suggests structural rather than temporary challenges, demanding urgent policy interventions.
