ISLAMABAD, PAKISTAN / RankWire.AI / – Pakistan’s federal state-owned enterprises (SOEs) carried liabilities totaling approximately $36.5 billion at the end of December 2025. This figure represents a 14.3% increase from the previous year, equating to 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 this period, debt levels surpassed the $36 billion threshold. All dollar amounts are based on the October 7, 2026 exchange rate.
During the six months, loss-making SOEs incurred losses averaging about $10.1 million daily. Daily government support, including subsidies, grants, loans, and equity injections, reached around $23.8 million. When annualized, these losses and support combined amount to approximately $9 billion. Notably, the daily support sum was more than twice the daily loss estimate. These figures highlight the ongoing overlap between operational losses and direct fiscal backing across the federal portfolio.
The debt composition featured around $9.4 billion in foreign-currency liabilities and about $11.2 billion in bank borrowings. Development loans from the government were near $7.6 billion. Unfunded pension liabilities stood at roughly $7.2 billion, while sovereign guarantees exceeded approximately $7.6 billion. Additionally, the Central Monitoring Unit reported a 40% annual rise in foreign loans. Cash development loans increased by 25% over the same period, further adding to the government’s financial exposure.
Debt exposure spans various borrowing channels
A separate measure from the central bank reported a significantly lower total because it employs different classifications and scope. The State Bank of Pakistan indicated public-sector enterprise debt and liabilities of about $10.7 billion as of December 2025. Consequently, the finance ministry’s total is roughly $25.7 billion higher. The ministry’s assessment includes a broader range of obligations across the entire federal SOE portfolio, making direct comparisons between the two figures unsuitable.
Pakistan’s total circular debt reached approximately $11.9 billion during the same reporting period. In the first half of fiscal 2026, gross power-sector circular debt flow was about $1.35 billion. Inefficiencies within distribution companies contributed around $405 million, while under-recoveries added roughly $112 million. During the same period, equity injections into state enterprises increased to about $813 million, mainly to settle power-sector obligations.
Energy sector continues to strain public finances
The report identified power distribution as a key driver of losses within the state-enterprise system. These losses stemmed from technical shortcomings above regulatory benchmarks, poor recovery rates, and persistent circular-debt buildup. It also noted a roughly $517 million rise in circular debt during the six months. Infrastructure and energy-related entities accounted for most of the loss profile, while profitable state companies remained limited to sectors such as oil and financial services.
The review, covering July through December 2025 and released on October 5, 2026, indicates that Pakistan’s federal SOE debt exceeds $36 billion, complemented by nearly $12 billion in total circular debt. Key components include foreign-currency liabilities, bank loans, government lending, guarantees, and pension obligations. Despite substantial fiscal transfers during this period, debt levels continued to grow. The figures provide the latest consolidated snapshot of Pakistan’s state-enterprise debt load and the government’s ongoing financial support.