Pakistan's state-owned enterprises (SOEs) have collectively posted a staggering net loss of Rs 122.9 billion for the fiscal year 2024-25, casting a long shadow over the nation's public sector financial health. The alarming figures were presented during a crucial review meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs), chaired by the Federal Minister for Finance and Revenue.
Major Loss-Makers Under the Microscope
The committee's review pinpointed the primary culprits behind the colossal deficit. Pakistan International Airlines (PIA) emerged as the biggest drain, contributing a devastating loss of Rs 72.6 billion. Close on its heels was the Pakistan Steel Mills (PSM), which reported a loss of Rs 26.3 billion. These two entities alone accounted for the lion's share of the SOE sector's financial hemorrhage, raising serious questions about their operational viability and management.
Other significant contributors to the losses included National Highway Authority (NHA) with Rs 10.7 billion and Thar Coal Block-1 with Rs 6.5 billion. The meeting, held to assess the quarterly performance of SOEs for the period ending September 2025, revealed a troubling trend of sustained financial bleeding that burdens the national exchequer.
Committee Directives and Strategic Reviews
In response to the dire financial report, the Cabinet Committee issued several key directives. It emphasized the urgent need for all relevant ministries to conduct thorough reviews of their respective state-owned enterprises. The committee mandated that these reviews focus on developing concrete, actionable plans aimed at either restructuring, privatizing, or dissolving the chronically loss-making entities.
A critical directive was for the Ministry of Industries and Production to expedite the resolution of the Pakistan Steel Mills case. The committee stressed that the ministry must present a clear and timely roadmap for the future of PSM, a symbol of industrial decline that continues to accrue massive losses. Furthermore, the committee decided that the Finance Division would compile and present a comprehensive summary regarding the future of all SOEs in the next meeting, indicating a potential major policy shift.
Broader Implications for Pakistan's Economy
The massive net loss of Rs 122.9 billion in FY25 is more than just a number on a balance sheet; it represents a significant drain on public resources. These recurring losses in the SOE sector limit the government's ability to invest in critical public services like health, education, and infrastructure. The continuous financial support required to keep these entities afloat contributes to fiscal deficits and exacerbates the country's debt burden.
The performance review by the CCoSOEs signals the government's growing impatience with the status quo. The push for reviews and clear action plans on restructuring or privatization suggests a move towards reducing the state's footprint in commercial enterprises. The outcomes of these directives will be closely watched, as they hold significant implications for thousands of employees, associated industries, and the overall economic policy of Pakistan. The next committee meeting is expected to be pivotal in setting the future course for these beleaguered public sector giants.
