State-owned entities lost Rs1.4 trillion in two fiscal years

The nation’s state-run commercial entities incurred losses amounting to a staggering Rs1.395 trillion over the fiscal years 2021 and 2022, the latest consolidated report by the Ministry of Finance has revealed. This figure is more than twice the size of the Public Sector Development Programme (PSDP), bringing to light significant concerns regarding financial management and operational efficiency in the public sector. The report, titled ‘Federal Footprint State-Owned Enterprises (SOEs) Consolidated Report FY2020-22’, has been launched by the Ministry of Finance under a performance benchmark of the International Monetary Fund (IMF). It indicates that of the 81 evaluated SOEs, 50 reported a combined profit of Rs568.44 billion in fiscal 2022. However, this was overshadowed by the Rs730.26bn cumulative loss of the remaining 31 entities, resulting in a net loss of about Rs162bn.