PKR 5.6 Trillion Lost: Government-Owned Entities Bleed National Exchequer Dry

PKR 5.6 Trillion Lost: Government-Owned Entities Bleed National Exchequer Dry

Over the past decade, Pakistan’s national exchequer has suffered a staggering loss of PKR 5.6 trillion (approximately USD 35 billion) due to the mismanagement and inefficiencies of 23 government-owned entities. This staggering figure highlights the systemic failures and governance issues that have plagued Pakistan’s state-owned organizations.

The National Highway Authority (NHA) tops the list of loss-making entities, with a staggering PKR 1,553 billion in losses. This is followed by Pakistan International Airlines (PIA), which has accumulated losses of PKR 713 billion. Pakistan Railways, another vital transportation entity, has incurred losses of PKR 390 billion.

The power sector is also a significant contributor to these losses, with K-Electric (formerly KESC) alone accounting for PKR 594 billion in losses. Pakistan Steel Mills, a once-profitable entity, has also suffered significant losses, totaling PKR 548 billion.

Other notable entities that have contributed to these losses include Sui Southern Gas Company (PKR 89 billion), Pakistan Post (PKR 77 billion), and various power distribution and transmission companies, such as Lesco (PKR 219 billion), Sepco (PKR 374 billion), and Mepco (PKR 190 billion).

The root causes of these losses are multifaceted, ranging from poor governance and mismanagement to inefficiencies and a lack of accountability. The government’s failure to implement effective reforms and oversight has allowed these entities to continue operating in the red, with little consequence.

The impact of these losses is far-reaching, with the national exchequer bearing the brunt of the burden. This has resulted in reduced resources for essential public services, such as healthcare, education, and infrastructure development. The economy has also suffered, with the country’s fiscal deficit continuing to widen.

To address these issues, the government must take decisive action to reform and restructure these state-owned entities. This includes implementing effective governance structures, increasing transparency and accountability, and introducing measures to improve efficiency and productivity.

Until then, the national exchequer will continue to bear the burden of these losses, and the Pakistani people will suffer the consequences of poor governance and mismanagement.

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