Pakistan, June 11 -- The federal government has allocated Rs354.81 billion to State-Owned Enterprises (SOEs) for FY2025-26, reflecting an 80.3% increase from Rs196.83 billion last year. These funds, released under the Public Sector Development Programme (PSDP), will support key SOEs in infrastructure, transport, energy, and financial services-sectors critical to national development.

Finance Minister Muhammad Aurangzeb, in his budget speech, warned that loss-making SOEs continue to weigh heavily on public finances. He noted the annual burden exceeds Rs800 billion, and when factoring in subsidies, grants, and equity support, the fiscal impact surpasses Rs1 trillion. This scale of support is unsustainable and calls for urgent reform.

To a...