23 SOEs drained Rs5.5tr in a decade, NA panel told

ISLAMABAD: Pakistan’s 23 state-owned enterprises (SOEs) have drained a staggering Rs5.5 trillion (over $19.5 billion) from the national exchequer over the past decade, with Pakistan International Airlines (PIA) alone losing Rs700 billion — a revelation that has reignited urgency around privatisation and accountability.

The figures, shared by Adviser to the Prime Minister on Privatization Muhammad Ali during a meeting of the National Assembly’s Standing Committee on Privatization on Wednesday put a fresh spotlight on decades of inefficiency and mismanagement across the public sector entities. “This is not just unsustainable — it’s a burden on every taxpayer,” Ali said.

The meeting, chaired by Farooq Sattar MNA, was informed that 1,000 more utility stores would be shut down this month — potentially laying off hundreds of employees — prompting urgent calls for worker protection. Briefing the committee, officials disclosed that only 1,500 of the existing 5,500 utility stores will remain operational, with plans underway to privatize even those that are financially viable. “The state is responsible for ensuring job security,” Sattar asserted, warning that the drive must not disregard employees’ futures. So far, 2,237 USC employees have already been terminated, the committee was told. Despite receiving a subsidy of Rs38 billion last fiscal year, the USC has not been granted the Rs60 billion earmarked for the current year, further straining its operations. Officials from the Power Division informed the committee that the privatization of three loss-making power distribution companies — Sepco, Hesco, and Pesco — was under consultation with the World Bank. These firms are currently being assessed, and financial advisors will be appointed once their accounts are updated by September 2025.