The Cabinet Committee on State-Owned Enterprises (CCoSOEs) on Monday reviewed the performance of federal state-owned enterprises (SOEs) during the first half of the fiscal year 2025-26, with the government stressing the need for greater financial discipline, improved governance and reduced reliance on public support.
The meeting, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, was also attended by Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry, according to a press release issued by the Ministry of Finance.
The Central Monitoring Unit (CMU) of the Finance Division presented a detailed assessment of the SOEs’ financial and operational performance, profitability and losses, fiscal flows, implementation of approved business plans, governance, financial reporting and progress against key performance targets.
The committee was informed that profitable SOEs earned aggregate profits of Rs.423.3 billion during July-December 2025, while loss-making entities recorded combined losses of Rs. 342.8 billion. The figures highlighted the significant value generated by several entities while also pointing to the need for continued corrective measures and structural reforms in underperforming organizations.
Government support to SOEs during the period amounted to Rs.804 billion, while the entities contributed Rs. 839 billion to the government, resulting in a positive net fiscal flow of Rs. 35 billion in favor of the government.
The committee observed that improving commercial performance, strengthening financial discipline and gradually reducing dependence on public support remained key priorities of the government’s SOE reform agenda.
The review identified circular debt and other fiscal risks, operational weaknesses in parts of the power and infrastructure sectors, corporate governance shortcomings and weak board effectiveness as areas requiring sustained attention. The committee called for strict implementation of approved business plans, measurable performance targets, greater operational efficiency and timely corrective action in underperforming entities.
The committee was also given a demonstration of the CMU’s integrated digital reporting and analytics platform for SOEs as part of the government’s efforts to promote transparency and data-driven governance. The platform centralizes SOE data and provides standardized reporting, digital dashboards, and financial and operational analytics, enabling authorities to monitor performance, identify emerging risks and assess entities against agreed targets.
Welcoming progress in the monitoring and reporting framework, the committee stressed that greater transparency must be matched by improved performance and accountability. It directed continued focus on financial discipline, governance, operational efficiency and effective implementation of approved business plans.
The committee reiterated the government’s objective of developing a more transparent, professionally governed and financially disciplined SOE portfolio capable of becoming increasingly commercially sustainable while reducing fiscal risks and the burden of persistently loss-making entities on public finances.
In addition to the performance review, the committee approved a Cabinet Division summary concerning the appointment of independent directors to vacant positions on the Board of the Printing Corporation of Pakistan.
It also approved a Science and Technology Division proposal for the appointment of the chairman of the Board of Directors of the Indigenous Research and Development Agency (IRADA) in accordance with the State-Owned Enterprises Policy, 2023.
A Petroleum Division summary regarding the constitution of the Board of Management of Pakistan State Oil Company Limited (PSO) was also considered, with the committee approving the proposed nominations of independent directors under the State-Owned Enterprises (Ownership and Management) Policy, 2023.
The committee further approved an amendment to the SOEs Policy, 2023 concerning the monitoring mechanism for implementation of International Financial Reporting Standards (IFRS) by SOEs. Under the amendment, IFRS applicable to SOEs will refer to financial reporting standards notified by the Securities and Exchange Commission of Pakistan (SECP), including any modifications or exemptions granted by the regulator to companies generally. For SOEs regulated by the State Bank of Pakistan, the statutory financial reporting framework prescribed by the central bank will prevail.
The committee also discussed broader SOE reform measures proposed by the Finance Division, particularly those aimed at improving the selection and appointment of directors, addressing delays in filling board positions and ensuring that candidates’ qualifications and experience correspond more closely with the requirements of individual SOEs.
Measures to expand the pool of qualified candidates and strengthen capacity-building and vetting mechanisms for directors were also discussed as part of efforts to improve governance and accountability across the state-owned enterprise sector.
