In a damning revelation, the Ministry of Finance reported that state-owned enterprises (SOEs) have amassed staggering losses of Rs851 billion during the fiscal year 2023-24. This alarming figure underscores the chronic inefficiencies and financial mismanagement plaguing these entities, which continue to drain public resources and pose significant financial risks to the national economy.
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The report highlights that the total loans of SOEs have ballooned to Rs9.2 trillion, nearly matching the Federal Board of Revenue’s (FBR) total revenues. Despite government interventions, including subsidies and grants amounting to Rs1.149 trillion, the net aggregate losses still stand at a colossal Rs521.5 billion. The power sector remains the primary culprit, with the National Highway Authority (NHA) alone reporting a loss of Rs295.5 billion.
These losses are not just numbers on a balance sheet; they represent a severe erosion of economic value, with SOEs collectively destroying Rs2.5 trillion in economic worth. The report calls for urgent reforms to enhance cash flow management, risk mitigation, and operational efficiency to stem the tide of financial hemorrhage.
The continued financial support to these loss-making entities raises serious questions about the government’s commitment to fiscal responsibility and the need for a comprehensive overhaul of the SOE sector. Without decisive action, the burden of these losses will continue to fall on taxpayers, undermining economic stability and growth.
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