Key points
- Government accelerates closures, sales and corporate restructuring
- Privatisation drive gains ground across major public enterprises
- Closures and privatisation reshape Pakistan’s public-sector portfolio
- Government steps up sales and restructuring of enterprises
ISLAMABAD: Pakistan’s state-owned firms generated aggregate profits of Rs 423.3 billion ($1.51 billion) in the first half of fiscal year 2025-26, against Rs 342.8 billion ($1.22 billion) in losses recorded by loss-making enterprises, according to a Finance Division performance review.
The figures showed a positive net fiscal flow of Rs 35 billion ($125 million) in favour of the government during the period, with state-owned firms contributing Rs 839 billion ($3 billion) to the government against Rs 804 billion ($2.87 billion) in government support.
The Finance Division said the figures reflected significant value being generated while reforms continued to address persistent challenges facing the state-owned enterprise portfolio.
The government’s reform programme is focused on closure, restructuring and privatisation, alongside greater transparency, stronger governance and improved operational efficiency.
Under the reform programme, the Utility Stores Corporation has closed its operations, while the Pakistan Agricultural Storage and Services Corporation (PASSCO) is undergoing a winding-up process.
First Women Bank has been privatised, while the privatisation of Pakistan International Airlines (PIA) has been completed at the majority-stake level.
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Three power distribution companies — Faisalabad Electric Supply Company, Gujranwala Electric Power Company and Islamabad Electric Supply Company — are moving through the privatisation process.
Lahore Electric Supply Company and Multan Electric Power Company are also lined up for privatisation, while a broader group of state-owned firms is progressing through restructuring and privatisation.
Pakistan’s integrated reporting platform
The Finance Division also highlighted the introduction of an integrated reporting and analytics platform for digital oversight of state-owned firms.
The platform is designed to improve visibility of financial and operational performance, support early identification of risks, track business plans and measurable key performance indicators, and strengthen accountability for results.
The government said the way forward included greater financial discipline and operational efficiency, stronger boards and management accountability, measures to address circular debt and fiscal risks, and implementation of business plans.
Privatisation would be pursued where appropriate as part of efforts to create a more efficient and sustainable portfolio of state-owned firms.
The Finance Division said the reform objective was to ensure that public assets created value rather than remained a recurring burden on taxpayers.
