Prime Minister Shehbaz Sharif has directed all federal ministries and divisions to implement a rigorous monitoring system to oversee the performance of State-Owned Enterprises (SOEs) and subordinate bodies under their control. This initiative follows alarming financial and governance issues plaguing SOEs across Pakistan.
A recent report from the Ministry of Finance reveals that Pakistan’s SOEs collectively incurred losses of Rs 851 billion in the fiscal year 2024, showing a 14.03% decrease compared to the previous year. However, the accumulated losses of SOEs since 2014 have reached a staggering Rs 5.9 trillion, raising serious concerns about the sustainability and management of these entities.
The losses were particularly severe in several SOEs, with the National Highway Authority (NHA) reporting the largest loss of Rs 295.5 billion, followed by QESCO at Rs 120.4 billion and PESCO at Rs 88.7 billion.Â
Other significant losses were incurred by Pakistan International Airlines (PIA), Pakistan Railways, and Pakistan Steel Mills Corporation, among others. These ongoing deficits highlight the ongoing financial instability within Pakistan’s public sector.
In response, Prime Minister’s Advisor Dr Tauqeer Shah issued a letter to federal secretaries, pointing out the insufficient oversight by ministries over SOEs and statutory organizations. This lack of effective monitoring has led to governance failures, including procurement violations, corruption, and inefficiencies in operations.Â
The Prime Minister has now instructed that ministers and secretaries exercise stronger and continuous oversight, taking proactive measures to address these governance issues.
The Prime Minister has also mandated the formulation of Key Performance Indicators (KPIs) for each SOE and subordinate body to ensure structured performance evaluations and greater accountability.Â
Additionally, a system of pre- and post-briefings for Board meetings will be established, enabling better-informed decision-making and timely reporting.
