ISLAMABAD, PAKISTAN / RankWire.AI / – Pakistan’s federal state-owned enterprises held liabilities totaling approximately $36.5 billion at the close of December 2025. This amount increased by 14.3% from the previous year, adding roughly $4.7 billion at current exchange rates. The Ministry of Finance disclosed these figures in its latest six-month review of federal state-owned enterprises. During the reporting period, debt levels crossed the $36 billion threshold. All dollar amounts referenced here are based on the October 7, 2026 exchange rate.
Loss-making state enterprises incurred losses averaging about $10.1 million daily over the six months. Government support, including subsidies, grants, loans, and equity injections, averaged around $23.8 million per day. When annualized, these losses and support combined total approximately $9 billion. The daily government support was more than double the daily loss estimate. The data illustrates the ongoing overlap between operating deficits and direct fiscal aid across the federal enterprise portfolio.
The debt structure comprised roughly $9.4 billion in foreign-currency liabilities and about $11.2 billion in bank borrowings. Cash development loans from the government amounted to nearly $7.6 billion. Unfunded pension liabilities were approximately $7.2 billion, while sovereign guarantees exceeded roughly $7.6 billion. The Central Monitoring Unit also reported a 40% annual rise in foreign loans. Over the same period, cash development loans increased by 25%, further expanding the government’s financial commitments.
Debt across multiple borrowing channels
A separate measure from the central bank resulted in a significantly lower total because it uses different classifications and coverage. The State Bank of Pakistan reported public-sector enterprise liabilities of about $10.7 billion for December 2025. Consequently, the finance ministry’s figure was approximately $25.7 billion higher. The ministry’s assessment encompasses a broader range of obligations across the entire federal SOE sector. This scope difference means the two totals are not directly comparable.
During the same period, Pakistan’s overall circular debt reached around $11.9 billion. The gross power-sector circular-debt flow hit about $1.35 billion in the first half of fiscal 2026. Distribution-company inefficiencies contributed roughly $405 million, while under-recoveries added about $112 million. During these six months, equity injections into state enterprises climbed to approximately $813 million, primarily to settle power-sector obligations.
Power sector’s persistent impact on public finances
The report identified power distribution as a key driver of losses within the state enterprise sector. It linked these losses to technical deficiencies exceeding regulatory standards, weak recoveries, and ongoing circular-debt accumulation. The six-month period saw an increase of roughly $517 million in the circular-debt stock. Infrastructure and energy companies accounted for much of the losses, while profitable state entities remained mainly within a limited set of sectors, including oil and financial services.
The review, covering July through December 2025, was published on October 5, 2026. It indicates that federal SOE debt surpassed $36 billion, with nearly $12 billion in total circular debt. Major components of the liabilities include foreign-currency obligations, bank loans, government lending, guarantees, and pension commitments. Despite significant fiscal transfers during this period, debt levels continued to grow. The figures provide the latest consolidated overview of Pakistan’s state-enterprise debt load and government support mechanisms.