Prime Minister Shehbaz Sharif has raised concerns over the staggering annual losses of Rs850 billion reportedly sustained by Pakistan’s state-owned enterprises (SOEs), emphasizing the urgent need for financial reforms. Speaking at a special cabinet meeting held at the Jinnah Convention Centre in Islamabad, the Prime Minister highlighted the critical situation of SOEs, describing them as “bottomless pits” that require immediate attention to prevent further economic damage.
The meeting, convened to assess the government’s performance over the past year, saw PM Shehbaz stress the necessity of addressing the circular debt in the power sector. This economic challenge comes in the wake of the government’s power-sharing arrangement between the Pakistan Muslim League-Nawaz (PML-N) and the Pakistan Peoples Party (PPP), following their electoral victory in February.
The Ministry of Finance recently disclosed that SOE losses for the fiscal year 2023-2024 reached Rs851 billion, with total liabilities amounting to Rs9.2 trillion. This financial burden is nearly equivalent to the total revenue collected by the Federal Board of Revenue (FBR), posing significant risks to the nation’s economic stability.
During his address, PM Shehbaz commended his cabinet for their efforts over the past year, noting the absence of corruption allegations—a stark contrast to claims made by political opposition. The Prime Minister also announced a Rs20 billion Ramazan package aimed at supporting four million families, who will receive Rs5,000 each via digital wallets. This initiative seeks to eliminate allegations of financial mismanagement that have plagued entities such as the Utility Stores Corporation.
In his remarks, PM Shehbaz expressed determination to avert a potential economic default, crediting his administration’s hard work for the recent economic turnaround. He urged cabinet members to persist in their efforts to achieve long-term economic growth, with an ambitious vision of transforming Pakistan into a $1 trillion economy by 2035.
Furthermore, the Prime Minister highlighted the importance of resolving tax disputes swiftly, with Rs400 billion in tax cases currently pending in the judicial system. He expressed optimism that with continued diligence and collective effort, Pakistan can overcome its challenges and progress towards sustained prosperity.
As the government endeavors to strengthen economic stability, PM Shehbaz remains confident that decisive action and reform will pave the way for a brighter future for Pakistan amidst its ongoing financial challenges.
