SOE losses swell to Rs851bn in FY24

The Ministry of Fin­ance (MoF) on Wednesday reported the aggregate losses of the state-owned enterprises (SOEs) at Rs851 billion during 2023-24 and their total loans at Rs9.2 trillion — almost equal to FBR revenues — posing serious financial and credit risks. In its Aggregate Annual Report of federal SOEs for FY24, as required under the IMF programme, the MoF said that after accounting for profits of some entities parked in Pakistan Sovereign Wealth Fund (PSWF), the net aggregate losses came to Rs521.5bn. Even those profitable entities had minimal free cash flow because their funds stuck up with those loss-making firms. Power sector companies cumulatively remain at the top of the list, bleeding the public money and economy, although the National Highway Authority (NHA) reported the largest single loss at Rs295.5bn. These entities together eroded almost Rs2.5tr of the economic value.