Islamabad: The Ministry of Finance has released the half-yearly performance report of government-owned enterprises under the IMF program, which has identified an overall weakness in the financial results of the institutions during the first six months of the current fiscal year.
According to the report, the profits of state-owned enterprises declined by 7 percent during July-December 2025. During this period, profits decreased from Rs 457.20 billion to Rs 423.3 billion. The data shows that government institutions continue to face the challenge of maintaining revenue while improving financial performance.
According to the document, there was almost no significant improvement in the losses of state-owned enterprises during the period under review. The losses were recorded at Rs 342.8 billion after a slight decrease from Rs 342.9 billion.
The report also shows a significant decline in the overall profit of state-owned enterprises. During July-December 2025, this profit decreased from Rs 114.3 billion to Rs 80.5 billion, which is a decrease of about 30 percent.
Other key indicators of financial position also showed pressure. The equity of SOEs decreased by about 3 percent during the half-year. According to the report, equity decreased from Rs 6,628.7 billion to Rs 6,407.2 billion.
Similarly, a decrease was recorded in the assets of state-owned enterprises. By December 2025, total assets decreased from Rs 37,720.7 billion to Rs 37,107.3 billion, i.e., a decrease of about Rs 613 billion.
According to the report, the total liabilities of SOEs also decreased by about one percent. However, the slight reduction in losses and the significant decline in profits indicate that more attention needs to be paid to the underlying performance, costs, and operational efficiency of the institutions rather than just changes in financial volume.
This report on the performance of state-owned enterprises is also part of the financial transparency and monitoring measures under the IMF program. The real challenge for the government is to maintain the performance of profitable institutions while reforming loss-making institutions.
The data in the report has come at a time when the government is trying to reduce the burden on the national exchequer through restructuring, privatization, and administrative reforms of public institutions.
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