The Cabinet Committee on State-Owned Enterprises (CCoSOEs) has reviewed the financial and operational performance of federal state-owned enterprises (SOEs) for the first half of fiscal year 2025-26, emphasizing financial discipline, better governance and reduced dependence on government support.
The meeting, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, was briefed by the Finance Division’s Central Monitoring Unit (CMU) on the performance of state-owned entities from July to December 2025.
In this regard, profitable SOEs generated an aggregate profit of Rs423.3 billion, while loss-making entities recorded combined losses of Rs342.8 billion during the period.
The figures mentioned a mixed performance across the public-sector enterprise portfolio, with profitable organizations generating substantial returns while several entities continued to face significant financial and operational challenges.
The committee was informed that government support to SOEs amounted to Rs804 billion during the six-month period. At the same time, SOEs contributed Rs839 billion to the government.
This resulted in a positive net fiscal flow of Rs35 billion in favour of the government, despite the substantial public support extended to the sector.
The committee stressed the importance of improving commercial performance and gradually reducing the financial burden of underperforming entities on public finances.
The review identified circular debt, fiscal risks, operational weaknesses in parts of the power and infrastructure sectors, and shortcomings in corporate governance as major areas requiring continued attention.
The committee directed SOEs to strictly implement approved business plans, establish measurable performance targets and take timely corrective action where performance remains weak.
The CMU also demonstrated an integrated digital reporting and analytics platform designed to centralize SOE information and provide standardized financial and operational reporting.
The system includes digital dashboards and analytical tools intended to help authorities monitor performance, identify emerging risks and evaluate entities against approved targets.
Government Moves to Strengthen SOE Boards
The committee also approved several proposals concerning the appointment of independent directors and board members at state-owned entities, including the Printing Corporation of Pakistan, the Indigenous Research and Development Agency and Pakistan State Oil Company Limited.
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The committee also discussed measures to improve the selection, vetting and capacity-building of directors, with the broader objective of strengthening accountability, governance and commercial sustainability across Pakistan’s state-owned enterprise sector.
