Key Takeaways
- State-owned enterprises (SOEs) reported a combined profit of Rs423.3bn for July-December 2025.
- Loss-making entities recorded cumulative losses of Rs342.8bn, underscoring the need for continued reforms.
- Government support to SOEs amounted to Rs804bn, while their contributions to the government stood at Rs839bn, resulting in a net fiscal flow of Rs35bn.
The Cabinet Committee on State-Owned Enterprises (CCoSOEs) met on Monday to review the bi-annual performance of federal SOEs, which posted earnings of Rs423.3bn during July-December 2025. Finance Minister Muhammad Aurangzeb chaired the meeting, with Minister for Maritime Affairs Junaid Anwar Chaudhry also in attendance.
While the performance across several parts of the SOE portfolio was noted as strong, the committee highlighted the need for continued corrective action and structural reforms in underperforming entities. The committee was informed that government support to SOEs amounted to Rs804bn, while SOE contributions to the government stood at Rs839bn, resulting in a positive net fiscal flow of Rs35bn.
The review also identified areas requiring sustained attention, including circular debt and other fiscal risks, operational weaknesses in parts of the power and infrastructure sectors, corporate governance gaps, and the need for stronger board effectiveness and accountability. The committee emphasized the continued implementation of approved business plans, measurable performance targets, and improved operational efficiency in underperforming entities.
As part of the government’s emphasis on greater transparency and data-driven governance, the committee was given a demonstration of the Central Monitoring Unit’s (CMU) integrated digital reporting and analytics platform for SOEs. The platform centralises SOE data and enables standardised reporting, digital dashboards, and deeper financial and operational analytics, strengthening the government’s ability to monitor performance, identify emerging risks, and assess entities against agreed targets.
The committee noted that improving commercial performance, strengthening financial discipline, and progressively reducing dependence on public support remain central objectives of the government’s SOE reform agenda. The review also highlighted the need for sustained attention to areas such as circular debt, operational weaknesses, and corporate governance gaps.
The performance of SOEs during the period was a mixed bag, with some entities showing strong value and others incurring significant losses. The committee’s focus on continued reforms and corrective actions underscores the government’s commitment to improving the overall performance of these enterprises.
The review of SOE performance is part of a broader strategy to enhance the efficiency and profitability of these entities, contributing positively to the government’s fiscal health. The government’s emphasis on transparency and data-driven governance through the CMU platform is expected to play a crucial role in achieving these objectives.
