Key Takeaways
- Profitable state-owned enterprises earned Rs. 423.3 billion in H1 FY26.
- Loss-making entities recorded combined losses of Rs. 342.8 billion.
- Government support to SOEs amounted to Rs. 804 billion, contributing to a net fiscal flow of Rs. 35 billion.
The Cabinet Committee on State-Owned Enterprises was informed that state-owned enterprises (SOEs) generated aggregate profits of Rs. 423.3 billion during the first half of fiscal year 2026, while loss-making entities recorded combined losses of Rs. 342.8 billion. The figures were presented during a meeting chaired by Finance Minister Muhammad Aurangzeb at the Finance Division.
The meeting, which reviewed the financial and operational performance of federal SOEs for July through December 2025, highlighted that SOEs contributed Rs. 839 billion to the government during the period, while government support to the entities amounted to Rs. 804 billion, resulting in a positive net fiscal flow of Rs. 35 billion.
The Central Monitoring Unit of the Finance Division provided an assessment of the financial performance, profitability, losses, fiscal flows, business plans, governance, financial reporting, and progress against key performance targets of SOEs. The committee noted that the results reflected significant value generated by several parts of the SOE portfolio.
However, the committee emphasized the need for continued corrective measures and structural reforms in underperforming entities. The review identified several areas requiring sustained attention, including circular debt, other fiscal risks, operational weaknesses in parts of the power and infrastructure sectors, corporate governance gaps, and the need to improve board effectiveness and accountability.
The committee called for the implementation of approved business plans, measurable targets, improved efficiency, and timely action against loss-making entities. It also reviewed the Central Monitoring Unit’s digital platform for tracking SOE performance, identifying risks, and monitoring progress against targets.
The committee approved the appointment of independent directors to vacant positions on the Board of Printing Corporation of Pakistan and the chairman of the Board of Directors of the Indigenous Research and Development Agency in accordance with the State-Owned Enterprises Policy, 2023.
Further, the committee approved proposed nominations of independent directors to the Board of Management of Pakistan State Oil Company Limited under the State-Owned Enterprises Ownership and Management Policy, 2023. It also approved an amendment to the State-Owned Enterprises Policy, 2023, to align the monitoring of financial reporting standards with those notified by the Securities and Exchange Commission of Pakistan, while allowing the State Bank of Pakistan’s framework to apply to entities under its regulation.
The committee discussed improving director appointments, reducing delays, expanding the pool of qualified candidates, and strengthening screening and training to promote better governance, accountability, and financial discipline across SOEs.
