State-owned businesses (SOEs) in Pakistan reported cumulative losses of Rs905 billion in the fiscal year 2022–2023; this is a 23% growth over the previous fiscal year, 2021–2022.
This was disclosed in a study entitled “Aggregate Annual Report on Federal State-Owned Enterprises (SOEs) for Financial Year 2023,” which was made public on Tuesday by the Finance Division’s Central Monitoring Unit (CMU).
Due to these losses, there were net losses of Rs202 billion overall, which represents a 25% rise over the previous year. Additionally, liabilities increased by 20% to Rs29,721 billion, a sign of increased financial leverage.
As a result, net equity decreased by 2.55% to Rs5.49 trillion. The federal government is nevertheless concerned about rising levels of Value at Risk and overall portfolio volatility.
Losses persisted in the power industry, especially in distribution companies (DISCOs).
Despite the industry being given Rs759 billion, the aggregate losses on the power side amounted to Rs304 billion.
Moreover, organizations operating in the infrastructure domain, including the National Highway Authority (NHA), had elevated financial expenses, intensifying the overall situation of deficit.
The railway industry’s losses over the last ten years have totaled Rs5,595 billion, which is another factor contributing to the growing losses.
