The total debt of Pakistan’s public sector companies has reached Rs9.577 trillion, with the overall deficit rising sharply by 300 percent to Rs123.9 billion in the fiscal year 2024-25, according to a comprehensive performance report presented to the Federal Cabinet Committee on State-Owned Enterprises.
The report, presented under the chairmanship of Finance Minister Muhammad Aurangzeb, showed that public sector companies generated total revenues of Rs12.4 trillion during the period. Profitable enterprises posted a combined profit of Rs70.99 billion, down 13 percent from the previous year, primarily due to falling global oil prices that affected the energy sector.
Key performers included Oil & Gas Development Company with Rs8.25 billion in profits, Faisalabad Electric Supply Company with Rs5.35 billion, Pakistan Petroleum Limited with Rs5 billion, and National Power Parks Management with Rs3.74 billion. Officials noted that the profits of FESCO, GEPCO, and IESCO were largely due to government subsidies, without which many distribution companies would have remained in the red.
Loss-making entities recorded a marginally lower combined deficit of Rs83.28 billion. The overall net result for public sector companies was a Rs122.9 billion loss, three times higher than the previous year, with major deficits concentrated in power distribution companies.
Quetta Electric Supply Company posted a loss of Rs5.8 billion, while Sukkur Electric, Peshawar Electric, and Pakistan Railways continued to operate at a loss. Since 2014, cumulative losses of public sector enterprises have reached approximately Rs5.9 trillion.
The government has provided Rs616 billion in financial support so far, which increased to Rs2.078 trillion in FY 2024-25, largely through equity injections aimed at reducing circular debt.
The report highlighted that total public sector debt stands at Rs9.57 trillion, while unfunded pension liabilities amount to approximately Rs2 trillion, posing a long-term fiscal risk.
Finance Minister Aurangzeb emphasized strict financial discipline, timely audits, transparency, good governance, and accountability for loss-making entities, and directed authorities to accelerate reforms to improve the financial health of state-owned enterprises.