ISLAMABAD, PAKISTAN / RankWire.AI / – Pakistan’s federal state-owned enterprises (SOEs) accumulated liabilities totaling approximately $36.5 billion at the end of December 2025. The figure reflects a 14.3% rise from the previous year, equating to around $4.7 billion at current exchange rates. The Ministry of Finance released these figures in its latest six-month assessment of federal SOEs. During this period, debt levels surpassed the $36 billion threshold. All dollar amounts mentioned are based on the October 7, 2026 exchange rate.
Loss-making SOEs incurred losses averaging about $10.1 million daily over the six months, while government support—comprising subsidies, grants, loans, and equity injections—averaged roughly $23.8 million per day. When annualized, these combined losses and support reach approximately $9 billion. The daily support sum was more than twice the daily loss estimate, illustrating how operational deficits and direct fiscal aid persistently overlap within the federal enterprise portfolio.
The debt composition included roughly $9.4 billion in foreign-currency liabilities and around $11.2 billion in bank borrowings. Additionally, cash development loans from the government stood near $7.6 billion. Unfunded pension liabilities were estimated at about $7.2 billion, with sovereign guarantees exceeding roughly $7.6 billion. The Central Monitoring Unit also reported a 40% annual growth in foreign loans. Over the same period, cash development loans increased by 25%, further adding to the government’s financial exposure.
Debt exposure spans multiple borrowing channels
A separate measure by the central bank yields a significantly lower total, due to different coverage and classification standards. The State Bank of Pakistan reported public-sector enterprise debt and liabilities of about $10.7 billion for December 2025. This makes the finance ministry’s figure roughly $25.7 billion higher. The ministry’s review encompasses a wider array of obligations across the entire federal SOE sector. As a result, the two totals are not directly comparable because of scope differences.
Pakistan’s total circular debt during this period approached about $11.9 billion. Power-sector circular debt flow alone reached roughly $1.35 billion in the first half of fiscal 2026, with distribution-company inefficiencies contributing approximately $405 million and under-recoveries adding around $112 million. During the same six months, equity injections into state enterprises climbed to about $813 million, much of which was allocated to settle power-sector liabilities.
Power sector challenges intensify fiscal pressure
The report identified power distribution as a significant source of losses among state enterprises, citing technical shortfalls above regulatory standards, weak revenue recoveries, and ongoing circular-debt buildup. It also noted a roughly $517 million increase in circular debt during the period. Infrastructure and energy-related companies contributed most to this loss profile, while profitable state firms remained concentrated in sectors such as oil and financial services.
The six-month review, covering July through December 2025 and published on October 5, 2026, highlights that federal SOE debt exceeds $36 billion, with nearly $12 billion in combined circular debt. The report emphasizes that foreign-currency liabilities, bank loans, government lending, guarantees, and pension obligations remain key components of the overall liabilities. Despite substantial fiscal transfers during the period, debt levels continued to grow. These figures serve as the latest consolidated overview of Pakistan’s state-enterprise debt burden and government support arrangements.