Daily Dawn Investigation Cell, Dawn TV Report
Islamabad: Pakistan’s State-Owned Enterprises (SOEs) continue to suffer from financial and management problems, the main reasons for which include poor performance, weak governance, and delayed reforms.
The Ministry of Finance has stated that the overall revenue and profit of these companies declined by 8 percent and 10 percent, respectively, during the first half of fiscal year 2025.
The half-yearly performance report (July-December 2025) released by the Central Monitoring Unit (CMU) of the Ministry of Finance has identified the power sector as the biggest bottleneck, with total losses amounting to Rs 5,900 billion. The power sector alone is responsible for Rs 2,400 billion out of the total circular debt of Rs 4,900 billion.
According to the report, distribution companies (DSCOs) show unsustainable losses without subsidies, which are further exacerbated by issues such as dilapidated infrastructure and power theft. Delayed upgrades at the National Transmission and Dispatch Company (NTDC) and inefficient power generation companies are also affecting the performance of the system.
The report came a day after Federal Minister for Energy Owais Leghari claimed that losses of Rs191 billion were reduced in fiscal year 2025 through improved recovery and prevention of electricity theft.
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