ISLAMABAD, PAKISTAN / RankWire.AI / – Pakistan’s federal state-owned enterprises (SOEs) accumulated liabilities totaling approximately $36.5 billion by the end of December 2025. This figure indicates a 14.3% increase from the previous year, equating to an additional roughly $4.7 billion at current exchange rates. The Ministry of Finance disclosed these statistics in its latest six-month review of federal SOEs. During the reporting period, total debt surpassed the $36 billion threshold. All dollar amounts referenced here are based on the October 7, 2026 exchange rate.
Loss-making enterprises within the public sector incurred losses averaging about $10.1 million daily over the six months. Concurrently, government support—covering subsidies, grants, loans, and equity injections—amounted to approximately $23.8 million per day. When annualized, these combined losses and support sum to nearly $9 billion. The daily support figure was more than twice the loss estimate, illustrating how operational deficits and fiscal backing continued to overlap across the federal portfolio.
The debt composition included around $9.4 billion in foreign-currency liabilities and about $11.2 billion in bank borrowings. Additionally, cash development loans from the government reached close to $7.6 billion. Unfunded pension liabilities were estimated at roughly $7.2 billion, while sovereign guarantees exceeded approximately $7.6 billion. The Central Monitoring Unit also reported a 40% year-over-year rise in foreign loans. Over the same period, cash development loans increased by 25%, further adding to the government’s financial exposure.
Debt exposure across multiple borrowing channels
A separate measure from the central bank resulted in a significantly lower total, owing to different coverage and classification criteria. The State Bank of Pakistan reported public-sector enterprise debt and liabilities of about $10.7 billion as of December 2025. As a result, the Ministry of Finance’s figure was roughly $25.7 billion higher, reflecting a broader scope of obligations across the federal SOE portfolio. This difference indicates that the two totals are not directly comparable due to scope variations.
Pakistan’s total circular debt during the same period reached approximately $11.9 billion. In the first half of fiscal year 2026, gross power-sector circular debt flow was about $1.35 billion. Inefficiencies in distribution companies contributed around $405 million, while under-recoveries added roughly $112 million. During these six months, equity injections into SOEs increased to about $813 million, much of which was directed toward settling power-sector obligations.
Power sector continues to strain public finances
The review identified power distribution as a key factor in the losses within the state-enterprise sector. These losses stemmed from technical shortcomings exceeding regulatory benchmarks, poor recoveries, and ongoing circular-debt accumulation. An increase of approximately $517 million in circular debt was recorded over the six-month period. Infrastructure and energy companies accounted for much of this loss profile, while profitable state entities remained mainly within sectors such as oil and financial services.
The report, covering July through December 2025 and released on October 5, 2026, indicates that federal SOE debt exceeded $36 billion, with nearly $12 billion in circular debt. Major components of the liabilities include foreign-currency obligations, bank loans, government lending, guarantees, and pension commitments. Despite significant fiscal transfers during this timeframe, debt levels continued to grow. These figures provide the most recent consolidated assessment of Pakistan’s state-enterprise debt load and the extent of government support involved.