SOE Losses Rise Over Rs. 830 Billion in FY25 Despite Massive Govt Support: A Wake-Up Call for Pakistan

Hey everyone, it's tough reading these numbers, but they tell a story we can't ignore. In Fiscal Year 2025 (July 2024–June 2025), Pakistan's state-owned enterprises (SOEs) — those big government-run companies in power, transport, highways, and more — racked up aggregate losses of Rs832.8 billion from the loss-making ones alone. Even after some profits from better-performing entities (around Rs709.9 billion), the overall sector still ended up with a net loss of Rs122.9 billion — that's more than 300% worse than the Rs30.6 billion net loss the year before.

The headline might say "over Rs. 830 billion," and that's spot-on for the gross losses of the bleeding companies. Despite government pouring in Rs2.078 trillion in support (subsidies, equity injections, loans, guarantees — up 37% from last year), things got worse, not better. Revenues dropped by about Rs1.4 trillion to Rs12.4 trillion total, hit hard by falling oil profits and ongoing issues in power and transport.

This chart (or similar visuals from recent reports) shows how losses are concentrated: National Highway Authority (NHA) topped the list with a massive Rs294.9 billion hit (high depreciation, financing costs, and toll models not keeping up with road expansions). Power distribution companies dragged heavily too — Quetta Electric (QESCO) at Rs112.7 billion, Peshawar Electric (PESCO) Rs92.7 billion, and others like Sukkur, Hyderabad, and Lahore adding tens of billions each. Pakistan Railways lost Rs60.3 billion, PIA Holding around Rs48.9 billion, and even entities like Pakistan Steel Mills and hydropower projects chipped in big deficits.

Why does this keep happening? Structural problems: circular debt in power (still hovering around Rs3.9 trillion despite clearances), inefficiencies, overstaffing in some places, political interference, poor governance, and operations that prioritize public service over profitability. The government stepped in with huge equity injections (Rs728.9 billion, much for clearing circular debt) and other aid, but it hasn't fixed the root causes yet.

Look at this breakdown — total SOE debt and liabilities sit at staggering levels (Rs31.7 trillion liabilities, Rs9.57 trillion direct debt), and unfunded pensions jumped too. Every rupee of tax collected gets partly funneled back: about 16% of federal tax revenue went straight to supporting SOEs. That's real money from taxpayers in Lahore, Karachi, everywhere — going to plug holes instead of schools, hospitals, or infrastructure that actually grows the economy.

The government talks reform — privatisation pushes (like recent PIA deal), restructuring plans — but critics call it a "horrific structural failure." Losses surged despite claims of progress. Profit-making SOEs (oil/gas mostly) saw profits drop 13%, offsetting any gains from slight improvements in loss-makers (down just 2%).

For everyday Pakistanis, this means higher electricity bills (to cover DISCO losses), delayed development, and pressure on the budget that could mean more borrowing or taxes. In Lahore, we feel it through loadshedding ghosts, high utility costs, and roads that need fixing but funds get diverted.

The path forward? Real governance changes, faster privatisation where possible, tech upgrades, merit-based management, and breaking the circular debt cycle once and for all. Recent moves like PIA handover show intent, but we need consistency across the board — especially in power and transport.

This isn't just numbers on a page; it's about whether our state enterprises serve the people or drain them. Time for bold, transparent action.

Stand For Pakistan — let's demand accountability and real reform so these giants stop bleeding and start contributing. 🇵🇰 What do you think — is privatisation the only way, or can reforms fix them from inside? Share your views!

Disclaimer: This post is for informational purposes only. Stand For Pakistan is not responsible for any claims. All information is based on publicly available sources like Finance Division reports, Dawn, Business Recorder, The Express Tribune, and others. Readers should verify through official channels (e.g., Finance Ministry or CMU reports) for the latest details. Images are AI-generated or representative for visual reference.