Manama Web
  • Automotive
  • Business
  • Entertainment
  • Health
  • Lifestyle
  • Luxury
  • More
    • News
    • Sports
    • Technology
    • Travel
Monday, October 19, 2026
Manama Web
  • Automotive
  • Business
  • Entertainment
  • Health
  • Lifestyle
  • Luxury
  • More
    • News
    • Sports
    • Technology
    • Travel
Manama Web
Manama Web
  • Automotive
  • Business
  • Entertainment
  • Health
  • Lifestyle
  • Luxury
  • More
    • News
    • Sports
    • Technology
    • Travel
Copyright 2021 - All Right Reserved
Business

Debt-ridden Pakistan faces $36.5 billion SOE burden

by manamaweb.com October 7, 2026
October 7, 2026
50

ISLAMABAD, PAKISTAN / RankWire.AI / – Pakistan’s federal state-owned enterprises held about $36.5 billion in debt at the end of December 2025. The total increased 14.3% from a year earlier, adding roughly $4.7 billion at current exchange rates. Pakistan’s Ministry of Finance reported the figures in its latest review of federal state enterprises. The report covered the first half of fiscal 2026 and showed a further rise in public-sector financial exposure.

Debt-ridden Pakistan faces $36.5 billion SOE burden
Rising SOE debt and losses deepen pressure on Pakistan’s already strained public finances.

Loss-making state enterprises posted about $1.24 billion in combined losses during the six-month period. That works out to roughly $10.1 million for each working day. Government support through subsidies, grants, loans and equity injections reached about $23.8 million per day. The scale of that assistance exceeded the daily loss figure by more than two times. Profitable state companies generated earnings, but those gains remained concentrated among fewer enterprises and sectors.

Foreign-currency liabilities accounted for about $9.4 billion of the overall debt burden. Bank borrowing stood near $11.2 billion, while government cash development loans reached around $7.6 billion. Sovereign guarantees exceeded about $7.6 billion, adding another layer of fiscal exposure. Unfunded pension liabilities approached $7.2 billion. Foreign loans increased about 40% from a year earlier, while cash development loans rose about 25%.

Borrowing burden extends across major liabilities

A narrower measure from the State Bank of Pakistan showed public-sector enterprise debt and liabilities of about $10.7 billion in December 2025. The difference reflects separate accounting coverage and classifications rather than conflicting measurements of the same obligations. The finance ministry review includes a broader group of liabilities across federal enterprises. That broader approach produced a total roughly $25.7 billion above the central bank measure for the same period.

Pakistan’s combined circular debt reached about $11.9 billion during the reporting period. Gross power-sector circular-debt flow totaled around $1.35 billion in the first half of fiscal 2026. Distribution-company inefficiencies contributed about $405 million, while weak collections added roughly $112 million. Equity injections into state enterprises reached about $813 million during the six months. A large share related to payments connected with power-sector obligations and debt settlements.

Power sector remains central to SOE losses

The review identified electricity distribution companies among the main sources of losses across the federal enterprise portfolio. It linked those losses to technical shortfalls, poor recoveries and continuing circular-debt accumulation. Circular-debt stock increased by about $517 million over the six-month period. Infrastructure and energy entities accounted for much of the loss burden. Profitable state enterprises remained concentrated in areas including oil, gas and financial services, limiting the extent of gains across the wider portfolio.

The six-month report covered July through December 2025 and was released in October 2026. It showed federal SOE debt above $36 billion alongside nearly $12 billion in combined circular debt. Bank loans, foreign borrowing, government lending, guarantees and pension obligations all remained significant components. Large fiscal transfers also continued during the period. The latest figures place Pakistan’s state-enterprise finances under continued pressure as debt, losses and government support remain closely linked across the public sector.

0 FacebookTwitterPinterestEmail
previous post
Stagwell Launches New Global Media Agency, Stagwell Media
next post
PM Modi puts India water reforms in Global South spotlight

You may also like

Oil prices hit $110 a barrel on Middle...

October 17, 2026

Egypt remittances hit record $33.9 billion in eight...

October 16, 2026

Oman power output rises while water production falls

October 12, 2026

Indonesia draws $7.33 billion in foreign funds in...

October 12, 2026

Africa launches first continental credit rating agency

October 9, 2026

UAE global FDI stock reaches $402.7 billion in...

October 6, 2026

Pakistan fuel prices diverge as petrol rises, diesel...

October 6, 2026

Brent crude steadies after surge above $103

October 5, 2026

Renault expands France EV push with €10 billion...

October 5, 2026

South Korean inflation reaches 2.9 percent annual growth

October 3, 2026

Recent Posts

  • Guterres urges urgent global action to protect biodiversity

  • Oil prices hit $110 a barrel on Middle East supply fears

  • Samsung unveils AI memory strategy and AMD CXL demo at OCP

  • Egypt remittances hit record $33.9 billion in eight months

  • Thailand floods kill 71 and hit nearly 909,000 households

Business

Oil prices hit $110 a barrel on Middle East supply fears
Egypt remittances hit record $33.9 billion in eight months
Oman power output rises while water production falls

News

Guterres urges urgent global action to protect biodiversity
Thailand floods kill 71 and hit nearly 909,000 households
Pakistan imposes governor’s rule in Khyber Pakhtunkhwa

Travel

Air Arabia adds new Sharjah to Amman City Airport route
Air Arabia restores daily Ras Al Khaimah Kozhikode flights
flydubai showcases growing Syria network at Damascus show

Technology

Samsung unveils AI memory strategy and AMD CXL demo at OCP
Meta debuts Muse Wonder models for AI agents and coding
EU proposes secure EUCCS network linking first responders
© Manama Web | All Rights Reserved
  • Home
  • Contact Us
Manama Web
  • Automotive
  • Business
  • Entertainment
  • Health
  • Lifestyle
  • Luxury
  • More
    • News
    • Sports
    • Technology
    • Travel