State-owned enterprises remain a burden despite Rs12tr revenue

Despite their annual revenues touching Rs12 trillion, the state-owned enterprises (SOEs) remain a substantial and increasing drain on taxpayers’ money, with power sector firms leading the losses and eating up the value of the nation’s assets. According to the Aggregate Annual Report on Federal SOEs for Fiscal Year 2023 released by the Ministry of Finance on Tuesday, gross revenues reached Rs11.92tr, a 15 per cent increase from the previous year, primarily driven by inflationary pressures, with the oil and financial sectors leading the growth. “Total aggregate profits were Rs703 billion, while loss-making SOEs reported an aggregate loss of Rs905bn, up 23pc from last year. This resulted in aggregate net losses of Rs202bn, reflecting a 25pc increase from the previous year,” the report said.