ISLAMABAD: Pakistan’s state-owned enterprises (SOEs) continue to pose serious fiscal and operational challenges due to entrenched inefficiencies, poor governance, and delayed reforms, as aggregate revenues and profits declined by 8 per cent and 10pc, respectively, during the first half of FY25, the Ministry of Finance said on Friday.

In its biannual performance report (July-December FY25), the Ministry’s Central Monitoring Unit (CMU) highlighted the power sector as the biggest drag, with accumulated losses reaching Rs5.9tr. The sector alone accounts for Rs2.4tr of the Rs4.9tr circular debt across all SOEs.

“Distribution companies (Discos) reflect unsustainable losses when stripped of subsidies, further compounded by outdated infrastructure and unaccounted energy losses,” the report stated. Transmission constraints due to delayed NTDC upgrades and inefficient generation companies further eroded system efficiency.

The findings came a day after Power Minister Awais Leghari

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