The Cabinet Committee on State-Owned Enterprises (SOEs) was informed on Monday that profitable state-owned enterprises generated aggregate profits of Rs423.3 billion during July-December 2025, while loss-making SOEs recorded combined losses of Rs342.8 billion. The committee noted that the performance reflected significant value generated across several segments of the SOE portfolio, while underscoring the need for continued corrective measures and structural reforms in underperforming entities. The Cabinet Committee on State-Owned Enterprises (CCoSOEs) was informed that federal state-owned enterprises (SOEs) generated a positive net fiscal flow of Rs35 billion for the government during the first half of FY2025-26, with their contributions of Rs839 billion exceeding government support of Rs804 billion.
The committee, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division, reviewed the bi-annual performance of federal SOEs for July-December 2025. Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry also attended the meeting. The Central Monitoring Unit (CMU) of the Finance Division presented a comprehensive assessment of the SOEs' financial and operational performance, profitability and losses, fiscal flows, implementation of approved business plans, governance, financial reporting and progress against key performance targets.
The committee noted that profitable SOEs generated aggregate profits of Rs423.3 billion during the period, while loss-making entities recorded combined losses of Rs342.8 billion. It was informed that improving commercial performance, strengthening financial discipline and gradually reducing SOEs' dependence on public support remained key objectives of the government's reform agenda. The review identified areas requiring sustained attention, including circular debt and other fiscal risks, operational weaknesses in parts of the power and infrastructure sectors, corporate governance gaps, and the need to strengthen board effectiveness and accountability.
The committee stressed the need for continued implementation of approved business plans, measurable performance targets, improved operational efficiency and timely corrective measures in underperforming entities. The committee was also given a demonstration of the CMU's integrated digital reporting and analytics platform for SOEs. The platform centralises SOE data through standardised reporting, digital dashboards and financial and operational analytics, enabling the government to monitor performance, identify emerging risks and assess entities against agreed targets.
Welcoming progress in strengthening the SOE monitoring and reporting framework, the committee emphasised that greater transparency must be accompanied by stronger performance and accountability. It directed continued focus on financial discipline, governance, operational efficiency and effective implementation of approved business plans. The committee reiterated the government's objective of developing a more transparent, professionally governed and financially disciplined SOE portfolio that is increasingly commercially sustainable, while systematically addressing fiscal risks and reducing the burden of persistently underperforming entities on public finances.
The committee approved the appointment of independent directors against vacant positions on the Board of Printing Corporation of Pakistan (PCP). It also approved the appointment of the chairman of the Board of Directors of the Indigenous Research and Development Agency (IRADA) in accordance with the State-Owned Enterprises Policy, 2023. The committee approved the proposed nominations of independent directors to the Board of Management of Pakistan State Oil Company Limited (PSO) in accordance with the SOEs (Ownership and Management) Policy, 2023.
It further approved an amendment to the SOEs Policy, 2023 concerning the monitoring mechanism for implementation of International Financial Reporting Standards (IFRS) by SOEs. Under the amendment, IFRS applicable to SOEs will mean financial reporting standards notified by the Securities and Exchange Commission of Pakistan (SECP), including any modifications or exemptions granted by the SECP to companies generally. For SOEs regulated by the State Bank of Pakistan, the statutory financial reporting framework prescribed by the State Bank of Pakistan (SBP) will prevail.
The committee also discussed measures to strengthen the selection and appointment of directors, address delays in board appointments and ensure greater alignment between candidates' skills and experience and the requirements of individual SOEs. It also considered measures to expand the pool of qualified candidates and strengthen capacity-building and vetting mechanisms for directors.