State-Owned Enterprises Face Daily Losses of Rs2.8 Billion Amid Fiscal Strain

ISLAMABAD: State-owned enterprises (SOEs) in Pakistan are currently incurring average losses of Rs2.8 billion per day, as revealed in a recent report from the Ministry of Finance. The report, released on Monday to meet an International Monetary Fund (IMF) condition, highlights a significant decline in profitability for the first half of FY26.

According to the report, SOEs recorded a net adjusted profit of Rs80.5 billion from July to December 2023, marking a 30 percent decrease from Rs114.3 billion during the same period last year. Overall, aggregate profits for these enterprises fell by 7 percent, dropping from Rs457.2 billion in HY-2025 to Rs423.3 billion.

This downturn in SOE performance raises concerns about the sustainability of fiscal support measures currently in place. The substantial losses not only strain the national budget but also pose challenges for economic recovery, as the government grapples with rising inflation and a depreciating currency. Analysts warn that continued financial support for these enterprises may lead to further fiscal imbalances.

Looking ahead, the government is expected to convene discussions on potential reforms for SOEs to enhance efficiency and reduce losses. Stakeholders are urging immediate action to address the structural issues plaguing these enterprises, as the economic landscape remains precarious.