Loss-Making SOEs Bleed Rs. 2.8 Billion a Day: Finance Ministry Report

Pakistan's state-owned enterprises (SOEs) saw their combined adjusted profit fall 30 percent to Rs.

Key points

• The decline was documented in the Ministry of Finance's latest SOEs Monitoring Report covering July to December 2025.
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• The ministry remarked the financial backing required by SOEs is putting pressure on public finances and limiting the government's ability to spend on development.

Pakistan's state-owned enterprises (SOEs) saw their combined adjusted profit fall 30 percent to Rs. 80.5 billion in the first half of FY26, with the power sector continuing to weigh heavily on the government's finances.

In practice, the decline was documented in the Ministry of Finance's latest SOEs Monitoring Report covering July to December 2025. Aggregate profits fell to Rs. 423.3 billion from Rs. While total losses remained almost unchanged at Rs, 457.2 billion a year earlier. 342.8 billion.

Notably, the worsening financial position has additionally climbed the government's daily burden. Loss-making SOEs are estimated to be losing around Rs. While the administration is providing almost Rs, 2.8 billion every day. 6.6 billion a day through subsidies, grants, loans and equity injections. Pakistan Faces Worse Loadshedding As Shortfall Crosses 4, 000 MW.

Meanwhile, the power sector remains the biggest source of concern. Circular debt in the sector rose by Rs. 374 billion during the period, with the Finance Ministry pointing to subdued recoveries and operational inefficiencies.

For context, the ministry remarked the financial backing required by SOEs is putting pressure on public finances and limiting the government's ability to spend on development. It estimated that the burden during the six-month period was equivalent to regarding 11 percent of federal budgetary receipts.

For context, the wider SOE portfolio is additionally carrying more than Rs. 10 trillion in debt exposure. Around Rs. 2.5 trillion consists of foreign currency-denominated liabilities, leaving the administration exposed to exchange rate movements, refinancing risks and pressure from external financing needs. Govt Clears 9 Parties to Purchase GEPCO.

In practice, the sector's balance sheet weakened during the period, with total assets falling 2 percent to Rs. 37.107 trillion from Rs. 37.721 trillion. Equity declined 3 percent to Rs. While liabilities fell 1 percent to Rs, 6.407 trillion. 30.7 trillion.

Meanwhile, the Finance Ministry remarked the combination of lower equity and high leverage continues to create fiscal and refinancing risks, particularly for capital-intensive SOEs operating in power, infrastructure and transport.

Profitability additionally remains concentrated in a small number of businesses, with the oil and gas and financial sectors accounting for a substantial share of overall earnings. This leaves the broader SOE portfolio exposed to changes in commodity rates, exchange rates, regulations and wider economic conditions. Stay Connected with ProPakistani.

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