SOEs' performance: PM directs ministries, divisions to implement monitoring system
According to a report by the Ministry of Finance, Pakistan's SOEs collectively incurred losses of Rs 851 billion in the fiscal year 2024 (FY24). While this reflects a 14.03% decrease compared to the previous year, the total accumulated losses since 2014 have reached a staggering Rs 5.9 trillion.
According to Finance Ministry's report, in fiscal year 2024 (FY24), Pakistani SOEs incurred a total loss of Rs 851 billion. This represents a 14.03% decrease compared to the previous year, but the total accumulated losses since 2014 remain substantial at Rs 5.9 trillion.
SOEs post 14pc decrease in losses YoY
Several SOEs incurred significant losses during FY 2024. The largest loss was reported by the NHA at Rs 295.5 billion, followed by QESCO Rs 120.4 billion, Rs PESCO 88.7 billion, Rs PIA 73.5 billion, Pakistan Railways Rs 51.3 billion, SEPCO Rs 37 billion, LESCO Rs 34.5 billion, Pakistan Steel Millions Corp Rs 31.1 billion, HESCO Rs 22.1 billion, GENCO-II Rs 17.6 billion, IESCO Rs 15.8 billion, Pak Post Office Rs 13.4 billion, TESCO Rs 9.5 billion, GEPCO Rs 8.5 billion, GENCO-III Rs 7.8 billion and all others cumulatively Rs 23.7 billion. Accumulated losses to date stand at a colossal Rs 5,748 billion with the majority in the past 10 years alone.
In a letter to all the secretaries of ministries/divisions, Prime Minister's Advisor Dr Tauqeer Shah stated that the prime minister has noted with concern the insufficient oversight by federal ministries over SOEs and statutory organisations under their jurisdiction which has resulted in serious governance failures, including violations of procurement rules and incidents of corruption, inaction against malpractice, operational inefficiencies, failure to manage prolonged litigation , and declining service delivery.
In view of the above, the prime minister has directed that: (i) Ministers-in- Charge and secretaries of the concerned divisions shall exercise robust and continuous oversight over all organisations under their administrative control, including SOEs, autonomous bodies, and attached departments.
Nominated representatives on Boards shall actively exercise their rights to support this oversight. Immediate and proactive measures shall be taken to address existing governance issues and prevent their recurrence; and (ii) a system of pre- and post-briefings for Board meetings shall be instituted.
The government representatives shall seek proper instructions prior to attending Board meetings and provide timely reporting thereafter.
The prime minister has also directed that all ministers-in-charge shall also ensure the formulation of Key Performance Indicators (KPIs) and monitoring frameworks for each subordinate organisation and SOE under their jurisdiction to enable structured evaluation of performance and accountability.
Copyright Business Recorder, 2025
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