Farooq Awan

Pakistan’s federal state-owned enterprises (SOEs) posted a combined net loss of Rs122.9 billion in fiscal year 2025, as aggregate profits declined and overall revenues contracted during the year, according to the Federal State-Owned Enterprises Annual Aggregate Report FY2025.

The report shows that total aggregate profits of SOEs fell by 13 percent to Rs709.9 billion in FY2025 from Rs820.7 billion recorded in FY2024. At the same time, aggregate losses narrowed slightly by 2 percent to Rs832.8 billion compared with Rs851.4 billion a year earlier. Despite the modest reduction in losses, the fall in profits outweighed the improvement, resulting in a net adjusted loss for the portfolio.

Overall revenues of SOEs declined by 8 percent year-on-year to Rs12.43 trillion, compared with Rs13.52 trillion in the previous fiscal year.

The balance sheet data presented in the report indicates that total assets of the SOE sector remained largely stable, recording a marginal 1 percent decrease to Rs37.99 trillion. Total liabilities decreased by 3 percent to Rs31.74 trillion from Rs32.57 trillion. Meanwhile, total equity increased by 7 percent to Rs6.25 trillion during the year.

According to the report, profit-making SOEs generated a combined profit of Rs709.9 billion. Earnings were concentrated among a limited number of entities, including Oil and Gas Development Company Limited (Rs169.9 billion), Pakistan Petroleum Limited (Rs89.9 billion), National Bank of Pakistan (Rs56.7 billion), Water and Power Development Authority (Rs52.3 billion), and Government Holdings (Private) Limited (Rs48.5 billion).

On the other hand, 25 SOEs reported combined losses of Rs832.8 billion. The National Highway Authority recorded the largest loss at Rs294.9 billion. Other major loss-making entities included Quetta Electric Supply Company (Rs112.7 billion), Peshawar Electric Supply Company (Rs92.7 billion), Pakistan Railways (Rs60.3 billion), and PIA Holding Company Limited (Rs48.9 billion).

The report further notes that the operating cost recovery ratio for loss-making SOEs stood at 0.80, indicating that these entities earned Rs80 in revenue for every Rs100 spent on operational activities. For profit-making SOEs, the ratio declined to 1.10 from 1.14 in the previous year.

In terms of returns, the net return on equity (ROE) was recorded at negative 1.96 percent, while return on assets (ROA) stood at negative 0.32 percent for the year. The data also shows that accumulated historical losses across SOEs reached Rs6.85 trillion by the end of FY2025.

These figures are part of the federal government’s consolidated annual assessment of financial and operational performance of state-owned enterprises across multiple sectors, including power, oil and gas, infrastructure, transport, manufacturing, and financial services, as documented in the official report.

Credit: INP-WealthPk