ISLAMABAD, PAKISTAN / RankWire.AI / – Pakistan’s federal state-owned enterprises reported a debt total of approximately $36.5 billion at the close of December 2025. This figure reflects a 14.3% increase from the previous year, equating to roughly $4.7 billion at current exchange rates. The Ministry of Finance included these numbers in its latest six-month assessment of federal SOEs. During this period, debt levels crossed the $36 billion threshold. All dollar amounts are based on the October 7, 2026 exchange rate.
Loss-making state entities incurred losses averaging about $10.1 million daily over the six months. Meanwhile, government aid through subsidies, grants, loans, and equity injections reached approximately $23.8 million per day. On an annualized basis, these losses combined with government support amount to around $9 billion. Notably, the daily government support was more than twice the daily loss estimate. These figures illustrate how operational deficits and fiscal aid persistently overlap within the federal portfolio.
The debt composition included roughly $9.4 billion in foreign-currency liabilities and about $11.2 billion in bank borrowings. Additionally, cash development loans from the government approached $7.6 billion. Unfunded pension liabilities were estimated at $7.2 billion, while sovereign guarantees exceeded roughly $7.6 billion. The Central Monitoring Unit also reported a 40% annual rise in foreign loans. Furthermore, cash development loans increased by 25% over the same period, adding to the government’s financial liabilities.
Debt exposure spans multiple borrowing channels
A separate measure from the central bank indicated a significantly lower total, due to differing coverage and classification methods. The State Bank of Pakistan reported public-sector enterprise debt and 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 wider range of obligations across the entire federal SOE portfolio. This difference in scope explains why the two totals are not directly comparable.
During the same period, Pakistan’s overall circular debt in the power sector reached around $11.9 billion. The gross power-sector circular-debt flow in the first half of fiscal 2026 was about $1.35 billion. Distribution-company inefficiencies contributed roughly $405 million, while under-recoveries added approximately $112 million. Equity injections into state enterprises rose to about $813 million over these six months, mostly to settle power-sector obligations.
The power sector’s ongoing losses exert pressure on public finances
The assessment identified power distribution as a primary source of losses within the state-enterprise network. These losses stemmed from technical deficiencies exceeding regulatory standards, ineffective recoveries, and the continuous accumulation of circular debt. The report also recorded a roughly $517 million increase in circular-debt stock during the period. Infrastructure and energy-related entities accounted for much of this loss profile. In contrast, profitable state companies remained concentrated in sectors such as oil and financial services.
The review, covering July through December 2025 and published on October 5, 2026, shows federal SOE debt exceeding $36 billion, with nearly $12 billion in combined circular debt. Key components of the liabilities include foreign-currency obligations, bank loans, government lending, guarantees, and pension commitments. Despite significant fiscal transfers during the period, debt growth persisted. These figures offer the latest consolidated overview of Pakistan’s state-enterprise debt load and the government’s ongoing support efforts.