ISLAMABAD: In the 2025 fiscal year, Pakistan’s federal government corporations loss amounted to Rs832 billion, as reported by the Ministry of Finance in its most recent financial performance report – a number that highlights the continuing and worsening fiscal burden that the country’s SOEs place on the national coffers despite repeated promises for reform.
NHAS registered itself as the highest deficit-making enterprise in the country, losing an alarming sum of Rs250 billion – the biggest ever deficit registered by any corporation under the federal government’s wings in fiscal year 2025. In the meantime, the railway system suffered from Rs60 billion worth of losses in the same year.
Rs250 Billion Loss of NHA Highlights Infrastructure Financing Problem
It is apparent that the loss of Rs250 billion made by the Federal Government Corporations NHA is one of the most dominating issues in the finance ministry report. As the leading infrastructure organisation in the country in charge of maintaining the nation’s highway system, the financial results of NHA highlight its infrastructural challenges.
NHA relies significantly on government transfers, tolls, and budget allocations for the purpose of building and maintaining highways, where expenses always outweigh the income generated. With an estimated deficit of Rs250 billion in the fiscal year 2025, it becomes apparent that the current financial framework for developing the highway network of Pakistan is not sustainable at all.
Decades-Old Trend Remains in Place as Pakistan Railways Suffers Losses
The addition of Rs60 billion losses by Pakistan Railways to the tally of total losses suffered by the federal government corporations is another link in the chain of a loss-making trend that has resisted reversal despite partial reforms, rate increases, and modernization programs by various governments. The losses incurred by the railway industry can be attributed to aging assets, low rates for passengers for social reasons, inefficiency in the use of fuel, and understaffing.
In spite of its significant strategic importance for public transport and freight carriage, Pakistan Railways is always able to siphon money from the state coffers, even when it fails to produce the business results that could support its financial position on the balance sheets. The FY2025 loss of Rs60 billion only adds to its cumulative losses.
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Performance of SOEs on Larger Scale Brings Up Sustainability Issues
The Rs832 billion amount lost by the federal government corporations in question consists of losses incurred not only by NHA and Pakistan Railways but several other state-owned enterprises, representing the larger problem highlighted in the report of the Ministry of Finance, which highlights issues related to sustainability of operations.
Despite several attempts to restructure each one of these firms, there has only been slight success at best. In addition, the factors that contribute to the firms’ losses such as overstaffing, underpricing, weak governance, and political interference remain in place. With each passing year that sees these firms incur huge losses, it becomes harder for the country to invest in the public sector.
What the Rs832 Billion Amount Says About Pakistan’s Finances
Rs832 billion of losses reported by the federal government corporations in FY2025 is not merely an indication of underperforming firms; rather, it is a clear illustration of transferring money from Pakistan’s tight budget to firms which absorb capital without providing any sustainable profits. In light of the fact that Pakistan is currently implementing a tough IMF programme where reducing fiscal deficits is a critical part of its objectives, losing Rs832 billion to SOEs becomes an even bigger challenge.
The release of this data by the Ministry of Finance report is in line with the requirement of transparency in reforms – however, transparency alone without accountability and action is only a statement of the issue rather than its resolution. Every billion rupees lost to these losses makes Pakistan’s window for SOE reforms smaller and smaller.
