The outstanding domestic debt of the loss-making Public Sector Enterprises (PSEs) soared to Rs. 1,879 billion during the first quarter of the current fiscal year (FY23).
According to a report from the State Bank of Pakistan (SBP), the outstanding domestic debt of loss-making PSEs swelled by Rs. 125 billion during the first quarter of FY23.
The data shows that these loss-making government enterprises are a burden on the national exchequer as the government has to borrow billions of rupees to run them. The PSEs have failed to turn around their financials despite the fact that the government has injected billions of rupees into them.
The report shows that the PSEs’ debt grew by Rs. 77 billion from Rs. 1,393 billion to Rs. 1,470 billion during the three months. Out of the total debt of PSEs, the Water and Power Development Authority (WAPDA) borrowed Rs. 1.3 billion new loans from domestic resources and it reached Rs. 73.8 billion in Sept 2022. The loan of the Oil and Gas Development Corporation (OGDC) also increased from Rs. 6.6 billion to Rs. 6.9 billion during the period.
The loan of the Pakistan International Airlines Corporation (PIA) increased by Rs. 4 billion from Rs. 182 billion to Rs. 186 billion during the three months. The borrowing of the Pakistan Steel Mills Corporation (PSMC) continued its decreasing trend during the first quarter of the current fiscal year. The loan of the PSMC decreased from Rs. 42.5 billion to Rs. 42.2 billion during the period.
The debt of other PSEs was increased by Rs. 71 billion from Rs. 1090 billion to Rs. 1,161 during the first quarter of FY23, according to the latest data.
According to the report, the liabilities of the PSEs increased by Rs. 48 billion to Rs. 409 billion during the period. The PSEs not only borrow from local sources but also took debt from abroad for their survival. The report shows that the external borrowing of the PSEs stood at $7.918 billion in September 2022 as compared to $8.199 billion in June due to some repayments made by the government during the period.