Pakistan’s State-Owned Enterprises (SOEs) recorded aggregate losses of Rs832.848 billion during fiscal year 2025, taking cumulative losses to Rs6.563 trillion, according to the Federal State-Owned Enterprises Annual Aggregate Report for FY25.

 

The report, covering the period from July 2024 to June 2025, was released by the Central Monitoring Unit of the Finance Division. It states that equity erosion among loss-making SOEs averaged around Rs3 billion per day during the year.

 

A total of 25 SOEs reported losses during FY25. The National Highway Authority recorded the highest loss at Rs294.9 billion. This was followed by Quetta Electric Supply Company with losses of Rs112.7 billion and Peshawar Electric Supply Company at Rs92.7 billion. Pakistan Railways reported losses of Rs60.3 billion, while PIA Holding Company Limited posted losses of Rs48.9 billion.

 

Other entities reporting losses included National Power Parks Management Company (Rs46.1 billion), Neelum Jhelum Hydropower Company (Rs29.4 billion), Pakistan Steel Mills (Rs26.0 billion), and Sukkur Electric Power Company (Rs25.3 billion). Losses were also reported by Pakistan Post Office (Rs19.3 billion), Pakistan Agricultural Storage and Services Corporation (Rs19.0 billion), Hyderabad Electric Supply Company (Rs12.9 billion), Lahore Electric Supply Company (Rs12.7 billion), and GENCO-II (Rs10.3 billion).

 

Entities reporting smaller losses included National Insurance Company (Rs2.9 billion), CPPA-G (Rs2.0 billion), Islamabad Electric Supply Company (Rs1.4 billion), Pakistan Television Corporation (Rs0.6 billion), Private Power and Infrastructure Board (Rs0.47 billion), Pakistan Expo Centres (Rs0.22 billion), Hazara Electric Supply Company (Rs0.04 billion), National Construction Limited (Rs0.03 billion), and Pakistan Broadcasting Corporation (Rs0.03 billion).

 

The report shows that aggregate profits declined by 13 percent, falling from Rs820.7 billion in FY24 to Rs709.9 billion in FY25. The decline was attributed to lower financial contributions from profit-making SOEs in the oil sector following a decrease in international oil prices. Aggregate losses declined by 2 percent year-on-year, from Rs851.4 billion to Rs832.8 billion. The net adjusted position resulted in a loss of Rs122.9 billion in FY25, compared with Rs30.6 billion in the previous year.

 

SOEs’ balance sheet data showed mixed movements. Total equity increased by 7 percent to Rs6,245.7 billion, driven by recapitalisation measures and equity injections, primarily in the power sector to address circular debt. Total liabilities declined by 3 percent to Rs31,742.4 billion. Total assets fell marginally by 1 percent to Rs37,988.1 billion.

 

Profit-making SOEs reported combined profits of Rs709 billion during FY25. The largest contributors included Oil and Gas Development Company Limited with Rs169.9 billion, Pakistan Petroleum Limited with Rs89.9 billion, National Bank of Pakistan with Rs56.7 billion, Water and Power Development Authority with Rs52.3 billion, and Government Holdings (Private) Limited with Rs48.5 billion.

 

Other contributors included Karachi Port Trust (Rs35.3 billion), Port Qasim Authority (Rs35.1 billion), Pak Arab Refinery Company (Rs22.2 billion), Pakistan National Shipping Corporation (Rs20.4 billion), State Life Insurance Corporation (Rs14.8 billion), SNGPL (Rs14.6 billion), Pakistan State Oil (Rs14.2 billion), Gujranwala Electric Power Company (Rs13.7 billion), Zarai Taraqiati Bank Limited (Rs9.7 billion), Saindak Metals (Rs8.4 billion), NTDC (Rs7.6 billion), SSGPL (Rs7.4 billion for nine months), and PIACL (Rs6.8 billion for six months). Nearly 90 percent of total profits were generated by a limited number of entities.

 

Government fiscal support to SOEs increased to Rs2,078.5 billion in FY25, up 37 percent from Rs1,512.9 billion in the previous year. Equity injections rose to Rs728.9 billion, largely linked to power-sector circular debt clearance and payments to independent power producers. Government loans increased by 34 percent to Rs354.1 billion.

 

Grants declined by 27 percent to Rs269.2 billion, while subsidies fell by 7 percent to Rs726.3 billion. Sovereign guarantees rose to Rs2,164.0 billion, reflecting accounting recognition of self-liquidating guarantees.

 

During FY25, the federal government collected Rs12,970 billion in tax revenue, of which around Rs2,078 billion, or 16 percent, was directed to SOEs. SOEs contributed Rs2,119.2 billion to the federal government, up from Rs1,971.2 billion a year earlier. Dividends increased to Rs149.6 billion, while tax collections from SOEs rose to Rs436.9 billion. Non-tax revenues declined to Rs1,264.9 billion.

 

Circular debt declined to Rs3,929 billion on a full-accrual basis. Power-sector circular debt fell to Rs1,889.9 billion, while gas-sector circular debt remained near Rs2.0 trillion.