ISLAMABAD, PAKISTAN / RankWire.AI / – Pakistan’s federal state-owned enterprises accumulated debt totaling approximately $36.5 billion by the end of December 2025. This represents a 14.3% increase from the previous year, adding about $4.7 billion at current exchange rates. The Ministry of Finance released these figures in its latest six-month review of federal state-owned enterprises. During this period, debt levels surpassed the $36 billion mark. All dollar amounts referenced are based on the October 7, 2026 exchange rate.
State enterprises operating at a loss incurred losses averaging around $10.1 million daily over the six months. Meanwhile, government support via subsidies, grants, loans, and equity injections averaged roughly $23.8 million each day. When annualized, these losses and supports together amount to approximately $9 billion. The daily government support figure was more than twice the daily loss estimate. These statistics highlight how operational deficits and direct fiscal aid continued to intersect within the federal enterprise portfolio.
The debt profile comprised roughly $9.4 billion in foreign-currency liabilities and about $11.2 billion in bank borrowings. Development loans from the government stood near $7.6 billion. Unfunded pension liabilities were estimated at around $7.2 billion, with sovereign guarantees exceeding roughly $7.6 billion. Additionally, the Central Monitoring Unit reported a 40% year-over-year increase in foreign loans. Cash development loans grew by 25%, adding further strain to the government’s financial commitments.
Debt Structure Spreads Across Multiple Borrowing Channels
A separate measure from the central bank indicated a significantly lower total, owing to different classification criteria. The State Bank of Pakistan reported public-sector enterprise debt and liabilities of about $10.7 billion for December 2025. This makes the Ministry of Finance’s figure roughly $25.7 billion higher, as it encompasses a broader range of obligations across the entire federal SOE portfolio. The difference in scope means these totals are not directly comparable.
Pakistan’s total circular debt during the same period was approximately $11.9 billion. The gross power-sector circular-debt flow reached around $1.35 billion in the first half of fiscal 2026. Distribution companies’ inefficiencies contributed roughly $405 million, while under-recoveries added about $112 million. During the six months, equity injections into state enterprises increased to about $813 million, much of which was used to settle power-sector obligations.
Power Sector Continues to Strain Public Finances
The review identified power distribution as a key driver of losses within the state-enterprise sector. It attributed these losses to technical shortfalls exceeding regulatory benchmarks, weak recovery rates, and ongoing circular-debt accumulation. The report also documented a roughly $517 million rise in circular-debt stock over the period. Much of this loss originated from infrastructure and energy entities, while profitable state companies remained concentrated mainly in sectors like oil and financial services.
Covering July through December 2025, and published on October 5, 2026, the review reveals that federal SOE debt exceeds $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 time, debt levels continued to grow. The data provides the most recent consolidated picture of Pakistan’s state-enterprise debt and the government’s ongoing support efforts.