ISLAMABAD, PAKISTAN / RankWire.AI / – Pakistan’s federal state-owned enterprises held about $36.5 billion in debt at the end of December 2025. The total increased 14.3% from a year earlier, adding roughly $4.7 billion at current exchange rates. Pakistan’s Ministry of Finance reported the figures in its latest review of federal state enterprises. The report covered the first half of fiscal 2026 and showed a further rise in public-sector financial exposure.
Loss-making state enterprises posted about $1.24 billion in combined losses during the six-month period. That works out to roughly $10.1 million for each working day. Government support through subsidies, grants, loans and equity injections reached about $23.8 million per day. The scale of that assistance exceeded the daily loss figure by more than two times. Profitable state companies generated earnings, but those gains remained concentrated among fewer enterprises and sectors.
Foreign-currency liabilities accounted for about $9.4 billion of the overall debt burden. Bank borrowing stood near $11.2 billion, while government cash development loans reached around $7.6 billion. Sovereign guarantees exceeded about $7.6 billion, adding another layer of fiscal exposure. Unfunded pension liabilities approached $7.2 billion. Foreign loans increased about 40% from a year earlier, while cash development loans rose about 25%.
Borrowing burden extends across major liabilities
A narrower measure from the State Bank of Pakistan showed public-sector enterprise debt and liabilities of about $10.7 billion in December 2025. The difference reflects separate accounting coverage and classifications rather than conflicting measurements of the same obligations. The finance ministry review includes a broader group of liabilities across federal enterprises. That broader approach produced a total roughly $25.7 billion above the central bank measure for the same period.
Pakistan’s combined circular debt reached about $11.9 billion during the reporting period. Gross power-sector circular-debt flow totaled around $1.35 billion in the first half of fiscal 2026. Distribution-company inefficiencies contributed about $405 million, while weak collections added roughly $112 million. Equity injections into state enterprises reached about $813 million during the six months. A large share related to payments connected with power-sector obligations and debt settlements.
Power sector remains central to SOE losses
The review identified electricity distribution companies among the main sources of losses across the federal enterprise portfolio. It linked those losses to technical shortfalls, poor recoveries and continuing circular-debt accumulation. Circular-debt stock increased by about $517 million over the six-month period. Infrastructure and energy entities accounted for much of the loss burden. Profitable state enterprises remained concentrated in areas including oil, gas and financial services, limiting the extent of gains across the wider portfolio.
The six-month report covered July through December 2025 and was released in October 2026. It showed federal SOE debt above $36 billion alongside nearly $12 billion in combined circular debt. Bank loans, foreign borrowing, government lending, guarantees and pension obligations all remained significant components. Large fiscal transfers also continued during the period. The latest figures place Pakistan’s state-enterprise finances under continued pressure as debt, losses and government support remain closely linked across the public sector.
