Pakistan’s State-Owned Enterprises (SOEs) occupy a central role in the country’s economic landscape. These entities are meant to safeguard the nation’s strategic interests, provide essential public services, and support overall development. However, in reality, they have increasingly come to symbolize inefficiency, fiscal strain, and missed opportunities.

The recent Cabinet Committee on State-Owned Enterprises (CCoSOEs) meeting revealed a concerning net loss of Rs 122.9 billion for FY 2024-25. Despite these challenges, the gap between their potential and performance highlights the immense untapped value that SOEs represent for Pakistan’s economy.

Instead of seeing SOEs solely as liabilities, we should consider them as institutions with the potential for meaningful reform. With the right approach, they can contribute to economic growth, foster innovation, and improve overall stability. Achieving this transformation will require a concerted focus on two key areas: improving governance and integrating private sector expertise.

Many of Pakistan’s SOEs continue to struggle due to deeply ingrained structural and governance weaknesses. In several crucial sectors, the challenges faced by SOEs are more the result of unclear mandates, weak leadership structures, and ongoing political interference than due to market conditions. Decision-making within these organizations is often reactive, lacking a clear strategic direction, and accountability is dispersed across various levels.

At the core of the problem lies a governance deficit. The boards of these enterprises are often restricted, management lacks true operational autonomy, and leadership tenures are too short or unstable to allow for long-term planning. Without clear goals and measurable responsibilities, even well-intentioned reforms fail to make a........

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