ISLAMABAD, PAKISTAN / RankWire.AI / – Pakistan’s federal state-owned enterprises carried liabilities totaling approximately $36.5 billion at the end of December 2025. This figure represents a 14.3% rise from the previous year, equating to an increase of around $4.7 billion at current exchange rates. The latest data from Pakistan’s Ministry of Finance, which reviewed the first half of fiscal 2026, indicates that the country’s public sector financial commitments continue to grow, reflecting heightened exposure.
During this six-month period, state enterprises operating at a loss reported combined losses of roughly $1.24 billion. This amounts to about $10.1 million each working day. Daily government aid through subsidies, grants, loans, and equity injections averaged approximately $23.8 million, more than doubling the daily loss amount. While some state companies showed profitability, these gains were predominantly confined to a smaller number of enterprises and sectors.
Liabilities denominated in foreign currency made up about $9.4 billion of the total debt load. Bank borrowings stood near $11.2 billion, with government cash development loans totaling approximately $7.6 billion. Sovereign guarantees accounted for over $7.6 billion, adding another layer of fiscal risk. Unfunded pension liabilities approached $7.2 billion. Foreign loans saw an increase of roughly 40% year-over-year, while cash development loans grew by about 25%.
Major liabilities extend across borrowing categories
A more specific measure from the State Bank of Pakistan indicated public-sector enterprise debt and liabilities of around $10.7 billion as of December 2025. The discrepancy stems from different accounting classifications and coverage, not conflicting data on obligations. The finance ministry’s broader review encompasses a wider range of liabilities across federal enterprises, resulting in a total roughly $25.7 billion higher than the central bank’s figure for the same period.
Pakistan’s overall circular debt during this period was approximately $11.9 billion. The power sector alone contributed about $1.35 billion to this figure in the first half of fiscal 2026, with distribution-company inefficiencies accounting for roughly $405 million and weak collection efforts adding another $112 million. During the same period, equity injections into state enterprises reached around $813 million, much of which related to payments for power-sector obligations and debt settlements.
The power sector continues to drive SOE losses
The review highlighted electricity distribution companies as key sources of losses within the federal enterprise sector. These losses are linked to technical deficiencies, poor recovery rates, and ongoing circular-debt accumulation. Over the six months, circular debt increased by about $517 million. Infrastructure and energy-focused entities bore much of this burden, while profitable state enterprises remained mainly in oil, gas, and financial services sectors, limiting overall gains across the broader public sector portfolio.
The report covering July through December 2025, released in October 2026, shows federal SOE debt exceeding $36 billion, with nearly $12 billion in combined circular debt. Significant components include bank loans, foreign borrowing, government lending, guarantees, and pension obligations. Substantial fiscal transfers persisted during this period. These latest figures underline the ongoing financial pressure on Pakistan’s state enterprises, as debt levels, losses, and government support remain tightly interconnected within the public sector.