Islamabad: Prime Minister Shehbaz Sharif has directed all federal ministries and divisions to strengthen oversight of State-Owned Enterprises (SOEs) and their affiliated bodies, following alarming reports of sustained financial losses and governance failures.
The directive comes after a Ministry of Finance report revealed that SOEs collectively suffered losses amounting to Rs851 billion in fiscal year 2024. Although this marks a 14.03% reduction from the previous year, the total accumulated losses since 2014 have reached Rs5.9 trillion.
The biggest contributor to these losses was the National Highway Authority (NHA), which posted a deficit of Rs295.5 billion. Other major loss-making entities included Quetta Electric Supply Company (QESCO) at Rs120.4 billion and Peshawar Electric Supply Company (PESCO) at Rs88.7 billion. Pakistan International Airlines (PIA), Pakistan Railways, and Pakistan Steel Mills also remain among the worst-performing SOEs.
In response, the Prime Minister has instructed ministers and secretaries to implement a robust monitoring mechanism. A letter issued by PM’s Advisor Dr Tauqeer Shah noted the inadequate oversight of SOEs, which has led to widespread operational inefficiencies, violations in procurement practices, and incidents of corruption.
To address these concerns, the Prime Minister has ordered the formulation of Key Performance Indicators (KPIs) for each SOE and statutory body. Ministries will also be required to conduct pre- and post-briefings for Board meetings, allowing for more informed decision-making and timely corrective actions.
Officials said the new oversight structure is aimed at enhancing transparency, accountability, and performance across Pakistan’s public sector enterprises.
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