Islamabad: State-Owned Enterprises (SOEs) in Pakistan have yielded a positive net fiscal flow of Rs35 billion for the government, according to Khurram Schehzad, Adviser to the Finance Minister. The reform initiatives in these enterprises are moving from identifying issues to implementing stronger oversight and transparency measures.

According to Radio Pakistan, Schehzad highlighted in a post on X that during the first half of the current financial year, profit-making SOEs generated aggregate profits of over Rs423 billion, while loss-making entities recorded losses amounting to Rs342.8 billion. SOEs contributed approximately Rs839 billion to the government, against government support of around Rs804 billion.

Despite significant losses and persistent structural challenges in parts of the portfolio, Schehzad emphasized the government’s focus on improving performance and accountability through its reform program. The government is streamlining the operations of SOEs by closing, restructuring, or privatizing entities based on their commercial viability and strategic importance.

Schehzad noted the closure of operations at the Utility Stores Corporation and the ongoing winding-up process of PASSCO. Additionally, the First Women Bank has been privatized, and a majority stake in Pakistan International Airlines has been sold off. The adviser reiterated the government’s stance that it should exit businesses where the private sector can operate more efficiently, and that SOEs retained in the public sector must be professionally governed and financially disciplined.

The reforms aim to ensure that public assets create value for the government and taxpayers, rather than becoming a recurring financial burden.