Pakistan’s SOEs struggle as few profitable firms subsidise mounting losses, fiscal risk

Pakistan’s SOEs struggle as few profitable firms subsidise mounting losses, fiscal risk

Pakistan’s state-owned enterprises (SOEs) play a critical role in the national economy, spanning energy, transport, finance, manufacturing, and services. They provide essential public utilities, support strategic sectors, and influence fiscal health. Yet, decades of underperformance, weak governance, and structural inefficiencies have transformed these vital institutions into a major fiscal challenge. The country’s federal SOE portfolio comprise…