Pakistan's state-owned enterprises (SOEs) continue to suffer from weak financial management, poor corporate governance, overstaffing and deep political interference, all of which have undermined their operational efficiency and commercial viability over time. Despite repeated reform attempts and privatisation agendas initiated by successive governments, progress has remained slow and inconsistent due to structural bottlenecks, lack of political commitment and the absence of a strong legal and regulatory framework.

SOEs operate across eight major sectors of the economy, manage vast public assets and liabilities, and play a dual role by contributing to government revenues while simultaneously imposing a heavy fiscal burden through subsidies, grants, loans, guarantees and equity injections. As per the finance ministry, in FY24, federal SOEs generated gross revenues of over Rs13.5 trillion, with aggregate profits of Rs820 billion; however, loss-making entities recorded losses of Rs851 billion. While total assets........

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