Islamabad: More than 15 state companies (SOE) have accumulated an amazing RS5.89 billion in combined losses, according to the Ministry of Finance, renewing concerns on financial health of the public sector of Pakistan, tarnished by the touches of governance and reform.
The figures, which cover the first half of fiscal year 2024-25 (July to December 2024), stand out persistent losses in the key sectors, especially energy and infrastructure, said the central monitoring unit of the Ministry (CMU) in its biannual performance report.
The Ministry said that total income fell by 8% and earnings fell 10% during the first half of fiscal year 2015.
The MCU report that the National Highway Authority (NHA) emerged as the greatest loss creator, with its cumulative deficit reaching RS19.53 billion. In just six months, the NHA registered a new loss of RS153.27 billion.
Energy distribution companies (disc) also continued to bleed money. The Quetta Electric Supply Company (Qesco) reported losses of RS58.10 billion in the six months, while Sepco based in Sukkur lost RS29.60 billion. Total SEPCO losses have now increased to almost RS473 billion.
The situation is not better in the Peshawar Electric Supply Company (Pesco), which recorded a loss of six months of RS19.68 billion, which raises its general deficit to almost RS685 billion.
The report shows that the electricity sector remains an important source of circular debt, with liabilities now in RS4.9 billion. The electricity sector only represents RS2.4 billion of that total.
Pension liabilities are also added to financial pressure. The report estimates that pending pension payments have increased to RS1.7 billion.
Among other problematic entities, Pakistan Steel Mills recorded a loss of six months of RS15.60 billion, which brought its total losses to RS255.82 billion. Meanwhile, the Pakistan Storage and Agricultural Services Corporation lost RS7 billion during the same period.
According to the Ministry of Finance, distribution companies continue to show a worrying trend of growing losses.
In addition, according to the half -year report, the SOE won RS6.459 billion in gross income during July to December 2024, a 7.9% drop compared to the same period last year. The decrease was mainly due to the fall in world prices of oil and lower national interest rates, which reached the profits of oil companies and banks.
Total earnings for all Soe fell to RS457 billion. Companies that make losses recorded a combined loss of RS343 billion. After adjusting those losses, the general net profit reached RS114 billion, a little better than the gain of RS101 billion recorded a previous year.
The general financial health of the SOE showed a slight improvement. Its total liabilities increased by just over 1% to RS31.09 billion, while the value of its assets increased by 3.75% to RS37.72 billion. As a result, its net equity, the difference between assets and liabilities, increased by almost 19%, reaching RS6.63 billion.
