State-Owned Enterprises (SOEs) posted losses of more than 300 percent in FY2024-25. Compared to a net loss of Rs. 30.6 billion in FY24, SOEs posted a net loss 301.66 percent higher of Rs. 122.9 billion in FY25.
This was revealed during a meeting of the Cabinet Committee on SOEs (CCoSOEs) on Friday under the chairmanship of Federal Minister for Finance and Revenue Muhammad Aurangzeb.
The Committee was presented with the Annual Consolidated Performance Report of commercial and non-commercial State-Owned Enterprises (SOEs) for FY 2024-25, prepared by the Central Monitoring Unit (CMU) of the Finance Division.
The presentation, delivered by Director General CMU Majid Soofi, provided a comprehensive 360-degree assessment of the SOE portfolio, covering financial and non-financial performance, government support and fiscal flows, contributions to the national exchequer, debt profiles, corporate governance and compliance status, business plan assessments, and the proposed way forward under the SOEs Act, 2023.
The Committee was informed that during FY 2024-25, aggregate revenues of SOEs stood at approximately Rs. 12.4 trillion, reflecting a decline largely due to reduced profitability in the oil sector following lower international oil prices.
Aggregate profits of profit-making SOEs declined by 13 percent to Rs. 709.9 billion, compared to Rs. 820.7 billion in the previous year. Aggregate losses of loss-making SOEs, however, improved slightly, declining by around 2 percent to Rs. 832.8 billion. Despite this improvement, the SOE sector recorded an overall net loss of Rs. 122.9 billion, compared to a net loss of Rs. 30.6 billion last year.
It was highlighted that losses remain heavily concentrated in a small number of entities, particularly in the transport and power distribution sectors. The National Highway Authority (NHA) and several power distribution companies continued to be major contributors to losses, reflecting structural inefficiencies, high depreciation and financing costs, and the public service nature of certain operations that are not commercially viable.
The Committee was briefed on the categorization of SOEs into green, amber, and red categories based on financial sustainability to help prioritize reforms and decision-making.
On fiscal support, the Committee noted that total government support to SOEs increased to Rs. 2,078 billion during FY 2024-25, driven mainly by higher equity injections to clear circular debt stock, while subsidies showed a modest decline. At the same time, inflows from SOEs to the government rose to Rs. 2,119 billion, supported by higher dividends, tax receipts and interest income on government lending.
The debt profile of SOEs was discussed in detail. Total SOE debt at the portfolio level increased to Rs. 9.57 trillion, comprising cash development loans, foreign re-lent loans, bank borrowings and accrued interest.
The Committee was also briefed on the quantification of unfunded pension liabilities across SOEs, estimated at around Rs. 2 trillion, which was identified as a major legacy risk requiring policy attention. Guarantees and other off-balance-sheet contingencies were reported at Rs. 2.16 trillion.
The Chair commended the Central Monitoring Unit for strengthening transparency, consolidating SOE financial information on an IFRS-aligned basis, and establishing a comprehensive digital database to support evidence-based decision-making. He noted that the presentation reflected meaningful progress in oversight, disclosure and risk identification, particularly in fiscal flows, debt mapping and unfunded pension liabilities.
The Chair emphasized that these improvements provide a credible foundation for informed policy action and sustained reforms, and reaffirmed the government’s commitment to improving governance, enforcing accountability and placing SOEs on a path toward financial sustainability and operational efficiency.
While appreciating the progress achieved, Committee members stressed the need for strict enforcement of audit completion in compliance with the SOEs Act, 2023, and the timely transition to IFRS-based reporting by February 2026. The importance of realistic business plans, sector-specific engagement, loss-reduction strategies and hard budget constraints, particularly for chronically loss-making entities, was also underscored.
The Cabinet Committee directed that the findings of the report be shared with relevant ministries to inform reform measures and that progress on audits, governance reforms, debt rationalization and fiscal risk containment be reviewed regularly. It approved the submission of the Annual Consolidated Performance Report for publication, describing it as a key step toward enhanced accountability, transparency and informed policymaking in the management of State-Owned Enterprises.
Earlier, the Committee also considered and approved the appointment of independent directors in Gujranwala Electric Power Company (GEPCO), Jamshoro Power Generation Company Limited (JPCL), Energy Infrastructure Development and Management Company (EIDMC), Independent System and Market Operator (ISMO), Islamabad Electric Supply Company (IESCO), and Tribal Areas Electric Supply Company (TESCO).
The meeting was attended by Federal Minister for Power Sardar Awais Ahmed Khan Leghari, Federal Minister for Science and Technology Khalid Hussain Magsi, Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, Federal Minister for Commerce Jam Kamal Khan, and Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry, along with secretaries and senior officials from relevant ministries, divisions and regulatory bodies.
IT IS A CONFESSIONAL STATEMENT OF MISMANAGEMENT OF THE CONCERNED AUTHORITIES AND ALMOST LOOKS A FREE HAND TO SUCH BIG GUNS WHO DAMN CARE FOR THE LOOS AND DO THE NEEDFUL.
THE LOSS SHOWN IN 2024/205 SPEAKS MUCH.THE ACTUAL PLAY WAS DISCLOSED BY THE
DOCTOR GOHAR ALTAF IN AN INTERVIEW WITH TALAT HUSSEIN AND IT WAS MORE THAN SUFFICIENT TO GO FOR THE ACCOUNTABILITY BUT NOTHING HAS COME UP SO FAR. MOREOVER RECENTLY THE GOVERNMENT POSED TO GET MORE THAN 378 BILLIONS IN TERMS OF POWER USER /THE POOR TO PAY BACK THE CIRCULAR DEBT.IT LOOKS LIKE THESE ISSUES ARE JUST FORGOTTEN AND IF THERE IS ANY LOSS IT CAN BE RECOVERED BY THE TAX PAYERS OR IN THE SHAPE OF INDIRECT TAXES ON THE CPI.HOWEVER ARTICLE ,4 SAYS SOMETHING DIFFERENTLY IF READ WITH ARTICLE 25,37,38 READ WITH ARTICLE,5 TO UNDERSTAND NICELY.
Easy. They don’t make losses.
State funded organization are public funded. No Profit or loss
Our military hasn’t reported profit since independence. So try that logic there