Pakistan SOE Losses 2026: Rs342.8bn Official Key Report

What the official SOE report found

Six-month result

Twenty-three federal state-owned enterprises collectively posted losses of Rs342.8 billion during July to December 2025. That works out to roughly Rs2.8 billion per working day. The figure is an accounting measure for the reporting period, not a fresh cheque paid on a single date.

Accumulated burden

Accumulated SOE losses rose to about Rs7.22 trillion by December 2025, up around 22% from Rs5.89 trillion. Total SOE debt was reported near Rs10.1 trillion, while pension liabilities were about Rs2 trillion. These stocks matter because they can create future budget pressure even when a current-year company result improves.

The largest loss-making entities

Transport and power dominate

The National Highway Authority reported the largest loss at about Rs124.7 billion. QESCO and SEPCO followed at roughly Rs35.3 billion and Rs34.9 billion, while Pakistan Railways lost around Rs29.4 billion. The pattern shows that infrastructure, power distribution and transport remain central to the problem.

Why comparisons need care

An SOE can provide a public service that is not priced to recover its full cost. That does not make every loss acceptable, but it means the solution may involve tariffs, targeted subsidies, better collection, procurement reform and clearer service obligations, not only staff cuts or privatisation.

Profits support and the net picture

Profitable enterprises

Profitable SOEs generated about Rs423.3 billion, down from Rs457.2 billion in the comparable period. After adjusting gains and losses, reported net profit was around Rs80.5 billion, about 30% lower. This is why readers should distinguish gross losses from the portfolio's adjusted net result.

Government fiscal support

Government support to SOEs reached roughly Rs804 billion in six months, around 31% higher. Support can include grants, subsidies, loans and equity. It is not automatically waste, but weak conditions and poor disclosure can turn temporary support into a recurring fiscal drain.

What reform should measure

Operational targets

Credible reform needs entity-level targets for billing, recovery, losses, punctuality, asset use, procurement and customer service. Boards should publish progress against those targets and explain deviations. A single portfolio number cannot reveal whether management is improving.

Budget transparency

Any subsidy for a public-service obligation should be explicit, costed and time-bound. Guarantees and loans should be disclosed alongside the probability that taxpayers will ultimately pay. Pension obligations need their own funding plans rather than being hidden inside operating accounts.

What the report means for citizens

Everyday impact

SOE losses can reduce fiscal room for health, education and local infrastructure. Power-sector inefficiency can surface in tariffs and circular debt, while transport losses can coexist with unreliable service. The cost is therefore experienced through both taxes and service quality.

Bottom line

The Rs342.8 billion headline is serious, but the useful question is which entities are improving and what taxpayers receive for support. The official report provides a baseline. The next test is whether future editions show lower recurring losses, transparent subsidies and measurable service gains.

Frequently asked questions

How much did federal SOEs lose in six months?

Twenty-three entities reported aggregate losses of Rs342.8 billion in the first half of FY26.

Which entity posted the largest loss?

The National Highway Authority was reported as the largest loss-maker at about Rs124.7 billion.

What were accumulated SOE losses?

The report placed accumulated losses at roughly Rs7.22 trillion by December 2025.

Did all SOEs lose money?

No. Profitable SOEs generated about Rs423.3 billion, though adjusted net profit declined.

Why does fiscal support matter?

Grants, subsidies, loans and equity can protect services, but recurring support creates budget pressure when performance does not improve.