ISLAMABAD, PAKISTAN / RankWire.AI / – Pakistan’s federal government-owned companies owed approximately $36.5 billion at the close of December 2025. The figure represents a 14.3% increase from the previous year, adding around $4.7 billion based on current exchange rates. The Ministry of Finance included these statistics in its latest six-month review of federal state-owned enterprises. During this period, debt levels surpassed the $36 billion threshold. All dollar amounts cited here are based on the October 7, 2026 exchange rate.
Loss-incurring state enterprises faced daily losses of roughly $10.1 million over the six months. Meanwhile, government support through subsidies, grants, loans, and equity injections averaged about $23.8 million daily. When annualized, these losses and support combined to total approximately $9 billion. Notably, the daily support amount was more than double the daily loss estimate. The data highlights how operational losses and direct fiscal aid continued to overlap within the federal portfolio.
The debt composition included about $9.4 billion in foreign-currency liabilities and roughly $11.2 billion in bank borrowings. Development loans from the government amounted to nearly $7.6 billion. Unfunded pension liabilities stood at about $7.2 billion, while sovereign guarantees exceeded approximately $7.6 billion. The Central Monitoring Unit also reported a 40% year-on-year rise in foreign loans. Additionally, cash development loans increased by 25% during the same period, further expanding the government’s financial exposure.
Debt Is Spread Across Multiple Borrowing Channels
A separate measure from the central bank indicated a significantly lower total, as it employs different classifications and coverage. The State Bank of Pakistan reported public-sector enterprise debt and liabilities of around $10.7 billion for December 2025. Consequently, the finance ministry’s figure was approximately $25.7 billion higher. This broader scope includes a wider range of obligations across the federal SOE portfolio. As a result, these two totals are not directly comparable due to their differing coverage.
Pakistan’s total circular debt reached about $11.9 billion during the same period. The gross flow of power-sector circular debt hit approximately $1.35 billion in the first half of fiscal 2026. Distribution-company inefficiencies contributed roughly $405 million, while under-recoveries added about $112 million. During the six months, equity injections into state enterprises rose to roughly $813 million. Much of this funding was used to settle power-sector obligations.
Power Sector Continues to Strain Public Finances
The review identified power distribution as a key area of losses within the state-enterprise sector. These losses were linked to technical shortcomings above regulatory standards, weak revenue recoveries, and ongoing circular-debt accumulation. The report also noted a roughly $517 million increase in the stock of circular debt during the six-month period. Infrastructure and energy companies accounted for most of the losses. Conversely, profitable state enterprises remained concentrated in sectors like oil and financial services.
The six-month review, covering July through December 2025, was published on October 5, 2026. It confirms that federal SOE debt exceeded $36 billion, with nearly $12 billion in combined circular debt. Major components of the balance sheet include foreign-currency liabilities, bank loans, government loans, guarantees, and pension obligations. The report also indicates that debt levels continued to rise despite significant fiscal transfers during the period. These figures provide the latest comprehensive assessment of Pakistan’s state-enterprise debt load and government support measures.