ISLAMABAD: Finance Minister Muhammad Aurangzeb on Monday said that financial losses of state-owned enterprises (SOEs) have declined by Rs74 billion over the past three years as part of the government’s reform and restructuring efforts.
Speaking during a televised briefing on SOEs Annual Aggregate Report for fiscal year 2025, the finance minister said aggregate losses stood at Rs905 billion in 2023, Rs851 billion in 2024 and Rs832 billion last year.
He said the reduction translated into average savings of around Rs142 million per day over the three-year period.
Aurangzeb said that while the government had extended financial support to SOEs, there had also been significant inflows in the form of taxes, dividends and mark-ups.
READ MORE: FY25 SOE losses hit Rs832.848bn mark
Last year, he said, the government provided Rs2.078 trillion in support to SOEs, while inflows amounted to Rs2.119 trillion, resulting in a net positive inflow of about Rs40 billion.
The minister emphasised that the fiscal picture surrounding SOEs was not one-sided. He said that it was important to understand that while the government has had to support these entities financially, there has been a substantial return in the form of taxes and dividends.
The minister further acknowledged that while some profitable companies, such as those in the oil and gas sector, continued to remain profitable, their profits decreased due to global factors such as falling oil prices. Despite these challenges, operational improvements have been observed in many sectors.
The minister said the losses of SOEs had accumulated over decades and the government was undertaking governance reforms to improve performance. He said independent private sector members had been inducted on boards to strengthen oversight and transparency.
He said, the government was also requesting business plans from SOEs and evaluating them to ensure a forward-looking approach. He said the government’s aim was not only to monitor past performance but also to guide SOEs towards better management and long-term sustainability.
To reduce the fiscal burden, the government has also undertaken steps to close down non-performing entities, including the Utility Stores Corporation and PASCO, and the government was actively pursuing a policy of rightsizing and privatisation of underperforming SOEs to ensure better use of public resources.
He said the main issue in closing down in these institutions was that billions of subsidies were being given, where theft, leakages and corruption was prevailing. “So the actual loss to the government of Pakistan was this inappropriate use of subsidies.” On privatisation, the minister said the government remained committed to moving ahead with the process in a transparent manner. He referred to the privatisation of First Women Bank and progress on the privatisation of Pakistan International Airlines (PIA), adding that 26 SOEs had been handed over to the Privatisation Commission.
He emphasised the continued commitment to privatising state-owned entities, citing the privatisation of the First Women Bank and the ongoing privatization process of PIA, with plans for the transfer of control to private sector sponsors by April. However, he said that government would not stop on 26 SOEs’ privatisation but would move forward with other public entities and would be handed over to the Privatization Commission.
Referring to the privatisation of First Women Bank and PIA, the Finance Minister highlighted the progress in the privatisation of other state owned enterprises including Zarai Taraqiati Bank, House Building Finance Company and five Discos.
Aurangzeb reiterated that structural reforms were being pursued to improve efficiency in public sector institutions and reduce the financial burden on the national exchequer.
He expressed confidence that continued governance reforms and privatisation would further improve the financial position of SOEs in the coming years. He reiterated the government’s commitment to take forward the privatisation process with speed and transparency.
Copyright Business Recorder, 2026
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