Pakistan Government Alarmed by Over Rs.6 Trillion Losses in State-Owned Enterprises

ISLAMABAD – August 13, 2025 – The federal government today announced a decisive plan to privatize 24 State-Owned Enterprises (SOEs) in a phased manner, with eight to be privatized this year. The announcement came from Finance Minister Muhammad Aurangzeb during a Senate session where he termed the nearly Rs. 6 trillion in losses incurred by SOEs as “alarming.”

Speaking on a calling attention notice regarding the “alarming figures revealed in Biannual Performance Report” from the Finance Division, Minister Aurangzeb highlighted that SOEs had incurred a staggering loss of Rs. 5.89 trillion during the first half of the financial year 2024-2025. He stated that this figure represented a significant portion of the previous year’s total revenue of Rs. 12 trillion, underscoring the critical need for immediate action.

The Minister detailed the government’s comprehensive strategy, noting that 24 SOEs have been finalized for privatization. These entities have been referred to the Cabinet Committee on Privatisation and subsequently to the Privatisation Commission. Of these, eight SOEs are slated for privatization within the current year, with the remaining to follow in subsequent phases. He also pointed to other measures being taken to improve governance, such as appointing chairpersons from the private sector to the boards of directors of these enterprises. As an example of a successful initiative, he mentioned that three distribution companies (DISCOs) have already been put through the privatization process, which is “yielding good results.”

In addition to privatization, the Finance Minister said he is leading cabinet committees on SOEs and rightsizing, which are actively working on reforms across 43 ministries and 400 government departments. He also reaffirmed his commitment to accountability by regularly appearing before the finance committees of the Senate and the National Assembly.

The calling attention notice was originally moved by Samina Mumtaz Zehri, and the issue was subsequently taken up by Pakistan Peoples Party (PPP) Parliamentary Leader in Senate Sherry Rehman, who called for strict accountability over the losses. Rehman also highlighted a specific instance where the CEO of Pakistan Reinsurance Company had received benefits worth Rs. 335 million over a three-year period, emphasizing that public money required absolute transparency.

In other legislative business, the Senate unanimously passed the Anti-Dumping Duties (Amendment) Bill, 2025. This bill provides retrospective effect to exempt products imported for foreign grant-in-aid projects from anti-dumping duty. The session also saw opposition senators walk out of the House in strong protest against the convictions of Pakistan Tehreek-e-Insaf (PTI) lawmakers by anti-terrorism courts (ATCs). The Senate, which is currently without an opposition leader, was adjourned until Friday.

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