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.