Loss-making State-Owned Enterprises (SOEs) reported total losses of Rs. 851 billion in FY 2023-24, a 14.03 percent decrease year on year.
According to the Ministry of Finance’s most recent aggregate annual report on SOEs, after accounting for government subsidies of Rs. 782 billion and grants of Rs. 367 billion, net aggregate losses was Rs. 521.5 billion.
The National Highway Authority (NHA) incurred the most losses, totaling Rs. 295.5 billion, followed by Quetta Electric Supply Company (Rs. 120.4 billion), Peshawar Electric Supply Company (Rs. 88.7 billion), Pakistan International Airlines (Rs. 73.5 billion), and Pakistan Railways (Rs. 51.3 billion). Cumulative SOE losses currently total Rs. 5,748 billion, the most in the recent decade.
Despite the losses, SOEs generated Rs. 13,524 billion in gross revenues, a 5.2 percent increase year-on-year, with total aggregate profits rising 14.61 percent to Rs. 820 billion. Asset value increased by 6.37 percent to Rs. 38,434 billion, while liabilities grew by 6.7 percent to Rs. 32,571 billion. Net equity improved to Rs. 5,863 billion, but high capital costs (WACC of 17-22 percent) kept Return on Equity negative at -0.5 percent and Return on Invested Capital at 3.4 percent.
Oil and Gas Development Company (Rs. 208.9 billion), Pakistan Petroleum Limited (Rs. 115.4 billion), and National Power Parks (Rs. 76.8 billion) were among the top profit-making SOEs. However, despite these gains, financial inefficiencies persist, with negative Economic Value Added (EVA) of Rs. 2,500 billion and continued cash flow constraints.
It is worth noting that SOEs paid Rs. 372 billion in taxes. Non-tax receipts, which included sales taxes, royalties, and levies, totaled Rs 1,400 billion. Dividends totaled Rs. 82 billion, with Rs. 206 billion in interest paid. The total donation was Rs 2,062 billion.