Pakistan's loss-making state-owned enterprises (SOEs) recorded combined losses of PKR 342.8 billion in the first half of fiscal year 2026, while profitable SOEs earned PKR 423.3 billion, the Finance Ministry said Monday. The figures were reviewed at a Cabinet Committee on State-Owned Enterprises meeting chaired by Finance Minister Muhammad Aurangzeb.
How much net fiscal flow did Pakistan's SOEs generate in H1 FY26?
Despite the PKR 342.8 billion in losses, Pakistan's SOEs delivered a positive net fiscal flow of PKR 35 billion to the government during July-December 2025. The government received PKR 839 billion from SOEs while providing PKR 804 billion in support, according to the Finance Ministry.
What challenges remain in Pakistan's SOE portfolio?
The review highlighted continuing structural challenges in parts of the state-owned enterprise portfolio. These include operational weaknesses, circular debt and fiscal risks, particularly in the power and infrastructure sectors.
What reforms has the committee ordered for SOEs?
The committee directed relevant authorities to strengthen financial discipline, improve operational efficiency and reduce the reliance of SOEs on public resources. It also called for accelerated reforms in entities that have continued to incur losses and emphasized stronger accountability of boards and management.
The Finance Ministry said the government is pursuing a broader program of closure, restructuring and privatization based on the commercial viability and strategic importance of individual entities.
Which SOEs are being privatized or wound up?
The Utility Stores Corporation has closed its operations, while the winding-up process of the Pakistan Agricultural Storage and Services Corp. is underway. First Women Bank has been privatized, and the majority stake privatization of Pakistan International Airlines has been completed, according to the government.
The Faisalabad Electric Supply Co., Gujranwala Electric Power Co. and Islamabad Electric Supply Co. are moving through the privatization process. The Lahore Electric Supply Co. and Multan Electric Power Co. are also being taken forward for privatization, and a broader pipeline of SOEs is under consideration for restructuring and privatization.
How is Pakistan strengthening SOE monitoring?
The committee welcomed progress in establishing a digital monitoring system for SOEs, the Finance Ministry said. The ministry's Central Monitoring Unit has operationalized an integrated reporting and analytics platform aimed at providing better visibility of financial and operational performance, monitoring business plans and identifying risks at an earlier stage.
The system is expected to strengthen performance monitoring through measurable key performance indicators and improve accountability across SOEs. The committee also reviewed measures to strengthen financial reporting, board effectiveness and implementation of business plans.
The government said its SOE reform program is aimed at ensuring that public assets generate value rather than become a recurring burden on taxpayers. The meeting also approved the appointment of independent directors to the board of the Printing Corporation of Pakistan.
The government has framed the reforms around a smaller state-owned enterprise footprint, stronger governance, greater transparency and improved financial and operational performance.
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