Top SOEs see profits slide 15% to Rs622b as governance fails

The combined profitability of Pakistan's top 15 state-owned companies decreased last year to a mere Rs622 billion, and there was only one firm with annual profits exceeding Rs100 billion, according to a new report by the Ministry of Finance. The report, which has been approved by a cabinet committee, also pointed out serious flaws in the governance structures of all the public sector companies, including the ineffectiveness of their boards. It added that there was weak oversight by audit and risk committees of these boards. According to the State-Owned Entities (SOEs) report for the fiscal year 2024-25, the total profits earned by Pakistan's top 15 public sector companies amounted to just Rs622 billion. These were 5% or Rs30 billion lower than the preceding year.