Pakistan’s top 25 state-owned enterprises post Rs832 billion losses in FY25 as net deficit triples

Pakistan’s state-owned enterprises recorded aggregate losses of Rs832 billion in FY25, while net losses surged to Rs123 billion from Rs30.6 billion in FY24, reflecting a 300% increase, according to the Finance Ministry’s latest SOE performance report.

The National Highway Authority (NHA) reported the largest deficit at Rs294.9 billion, followed by Quetta Electric Supply Company (Rs112.7 billion), Peshawar Electric Supply Company (Rs92.7 billion), Pakistan Railways (Rs60.3 billion) and PIA Holding Company Limited (Rs48.9 billion).

Other major loss-making entities included National Power Parks Management Company (Rs46.1 billion), Neelum-Jhelum Hydropower Company (Rs29.4 billion), Pakistan Steel Mills (Rs26 billion) and Sukkur Electric Power Company (Rs25.3 billion).

Additional losses were reported by Pakistan Post Office (Rs19.3 billion), Pakistan Agricultural Storage and Services Corporation (Rs19 billion), Hyderabad Electric Supply Company (Rs12.9 billion), Lahore Electric Supply Company (Rs12.7 billion) and GENCO-II (Rs10.3 billion), along with several smaller entities.

In contrast, profit-making SOEs posted an aggregate profit of Rs709 billion in FY25, with earnings concentrated among a limited number of entities. Oil and Gas Development Company Limited led with Rs169.9 billion in profit, followed by Pakistan Petroleum Limited (Rs89.9 billion), National Bank of Pakistan (Rs56.7 billion) and Water and Power Development Authority (Rs52.3 billion).

The report noted that a small group of SOEs accounted for nearly 90% of total profits.

Total equity of SOEs rose 7% to Rs6,245.7 billion, largely due to recapitalisation measures, particularly in the power sector. Total liabilities declined 3% to Rs31,742.4 billion, while total assets remained broadly stable at Rs37,988.1 billion.

Government fiscal support to SOEs increased 37% to Rs2,078.5 billion in FY25. Equity injections amounted to Rs728.9 billion, primarily linked to circular debt adjustments in the power sector. Government loans rose 34% to Rs354.1 billion, while grants declined 27% to Rs269.2 billion and subsidies fell 7% to Rs726.3 billion.

Sovereign guarantees increased to Rs2,164 billion from Rs1,419 billion.

During FY25, the federal government collected Rs12,970 billion in tax revenue, of which around Rs2,078 billion — approximately 16% — was directed toward SOEs through subsidies, equity injections, grants and loans.