Under conditions set by the International Monetary Fund (IMF), the Ministry of Finance has released a comprehensive performance report of Pakistan’s government-owned enterprises (SOEs), revealing alarming levels of financial mismanagement and mounting liabilities.
According to the report, the total losses of more than 15 major government institutions have now surpassed a staggering Rs5,893 billion. In just the first six months of the last fiscal year alone, losses increased by Rs3.45 trillion, highlighting the worsening financial health of these state-run bodies.
Exploding debts and liabilities
The report paints a grim picture of Pakistan’s economic landscape:
- Circular debt has ballooned to Rs49 trillion, with the power sector contributing Rs2.4 trillion and the gas and petroleum sectors adding Rs2.5 trillion to the total.
- Pension liabilities for retired public sector employees have also surged to Rs1.7 trillion, putting additional pressure on government finances.
Electricity distribution companies lead in losses
Among the worst-performing entities are the electricity distribution companies (DISCOs), whose losses continue to grow unabated:
- Quetta Electric Supply Company (QESCO) recorded a record six-month loss of Rs770.6 billion.
- Peshawar Electric Supply Company (PESCO) followed with Rs684.9 billion in total losses, with a six-month loss of Rs19.68 billion.
- Sukkur Electric Supply Company posted a six-month loss of Rs29.6 billion, while QESCO’s short-term loss alone stood at Rs58.1 billion.
These figures reflect the growing inefficiencies, line losses, and poor bill recovery rates plaguing Pakistan’s energy sector.
Other loss-making institutions
The report also highlights significant financial losses across other state-owned enterprises:
- Pakistan Steel Mills recorded a six-month loss of Rs15.6 billion, pushing its total accumulated losses to Rs255.82 billion.
- Pakistan Telecommunication Company Limited (PTCL) saw its losses rise by Rs7.19 billion in six months.
- Pakistan Agriculture Storage and Services Corporation (PASSCO) posted a six-month loss of Rs7 billion.
