Pakistan’s State-Owned Enterprises Suffer Rs850bn Annual Losses: PM Shehbaz Calls for Urgent Reforms
Islamabad – Prime Minister Shehbaz Sharif has raised concerns over the massive financial drain caused by Pakistan’s state-owned enterprises (SOEs), reporting annual losses amounting to Rs850 billion. Addressing key policymakers, he labeled SOEs as “bottomless pits” and stressed the need for immediate structural reforms to stabilize the economy.
According to the Ministry of Finance, SOEs have accumulated Rs9.2 trillion in loans, exacerbating Pakistan’s fiscal challenges. The energy sector remains a major contributor to these losses due to circular debt, inefficiencies, and mismanagement. The Prime Minister emphasized the privatization and restructuring of underperforming SOEs to minimize losses and improve financial sustainability.
Economic analysts warn that continued losses in the public sector could discourage investment, strain government resources, and impact Pakistan’s credit ratings. Experts suggest that public-private partnerships (PPPs) and foreign investments could be key to reviving these struggling enterprises.
As Pakistan prepares for its upcoming IMF bailout review, tackling SOE losses remains a critical part of the government’s economic recovery plan. Investors and financial markets will be closely monitoring the government’s approach to restructuring these entities.