Pakistan's state-owned enterprises are bleeding the economy dry. Can privatization save them?
Kamran Khan on PKR 6.5 trillion in SOE losses and whether Pakistan's privatization push can fix a broken system.
News Desk
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Pakistan’s economic challenges are intensifying far beyond slow growth and IMF pressure. A critical question is now emerging: can Pakistan’s state-owned enterprise (SOE) system survive in its current form?
SOE losses have crossed Rs832 billion in FY2025, while cumulative losses have surged to nearly PKR 6.563 trillion. Meanwhile, circular debt in the energy sector has reached close to Rs5 trillion, placing enormous strain on public finances and taxpayers.
In this episode, we explore:
- Major loss-making state-owned enterprises in Pakistan
- Why SOE losses are becoming unsustainable
- The growing energy sector circular debt crisis
- Privatization plans for FESCO, GEPCO and IESCO
- PIA privatization and its economic implications
- IMF-driven reforms and fiscal pressure
- Whether privatization improves efficiency
- Risks of partial reforms and political interference
The government argues that privatization and restructuring are necessary for economic stability. Critics say ownership change alone will not resolve deep governance and structural issues.
Is Pakistan heading towards meaningful reform or another cycle of incomplete privatization?
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