SOE Losses Rise Over Rs. 830 Billion in FY25 Despite Govt Support

Pakistan’s state owned enterprises posted combined losses of Rs. 832.8 billion in fiscal year 2024-25, according to a report released by the Ministry of Finance, despite a marginal 2 percent improvement from the previous year.

The report identified the National Highway Authority as the largest loss-making entity, with losses reaching Rs. 295 billion during the period.

Among power distribution companies, Quetta Electric Supply Company recorded losses of Rs. 112.7 billion, followed by Peshawar Electric Supply Company at Rs. 92.7 billion. Other distribution companies also posted losses, including Sukkur Electric Power Company with Rs. 25.3 billion, Lahore Electric Supply Company with Rs. 12.7 billion, Hyderabad Electric Supply Company with Rs. 13 billion, and Islamabad Electric Supply Company with Rs. 1.4 billion.

The transport sector also remained under pressure. Pakistan International Airlines reported losses of Rs. 48.9 billion, while Pakistan Railways posted losses of Rs. 60.3 billion. Meanwhile, Pakistan Steel Mills recorded losses of Rs. 26 billion and Pakistan Post posted losses of Rs. 19.3 billion.

Despite these losses, the report noted that total SOE losses declined by 2 percent on an annual basis, indicating slight improvement in financial performance.

On the profitability side, state-owned enterprises generated a combined profit of Rs. 709 billion, although this marked a 13 percent year on year decline. The most profitable entity was Oil and Gas Development Company Limited, which earned Rs. 170 billion, followed by Pakistan Petroleum Limited with Rs. 90 billion and National Bank of Pakistan with Rs. 57 billion.

The report further revealed that the government extended significant financial backing to these entities, providing Rs. 2,078 billion in support during the fiscal year. In addition, sovereign guarantees worth Rs. 2,164 billion were issued, underscoring the scale of fiscal exposure linked to the SOE sector