Pakistan’s state-owned companies had accumulated Rs10.1 trillion in debt by the end of December 2025, an increase of about 14% compared with a year earlier.
The figures were published in the Finance Division’s report on federal state-owned enterprises for July to December 2025.
State-owned enterprises are businesses controlled by the government. They operate in important sectors, including electricity and other public services.
The report shows that their combined debt increased by around Rs1.3 trillion over the year. The total includes bank borrowing, government-related loans and interest owed on existing debts.
Accumulated losses across these companies reached Rs7.22 trillion, compared with Rs5.89 trillion a year earlier.
However, several state-owned businesses remained profitable. Profitable enterprises earned a combined Rs423.3 billion during the six-month period, while loss-making companies recorded losses of Rs342.8 billion.
Together, the companies reported a net profit of Rs80.5 billion for the period, down from Rs114.3 billion a year earlier.
The government provided Rs804 billion in financial support through measures including subsidies, loans and grants.
Electricity-sector finances remained a major challenge. The report recorded a Rs374 billion increase in power-sector circular debt during the six months. Circular debt refers to unpaid amounts that build up between electricity companies and other participants in the power system.
The figures underline the importance of improving the financial performance of government-owned companies.
Stronger management, better bill collection and reforms in the power sector could help reduce pressure on public finances and improve essential services.