By Admin 
Pakistan’s government-owned companies are becoming a heavy burden on the country’s economy. According to a new report, the net loss of these companies has increased by 300 percent, while the government help given from taxpayers’ money has increased to Rs 2.1 trillion (local currency).
In an editorial of Pakistani newspaper The Express Tribune, the situation has been described as extremely worrying. According to the report, the total revenue of government companies declined by Rs 1.4 trillion to Rs 12.4 trillion in fiscal year 2025. At the same time, the total net loss of these companies increased to Rs 122.9 billion, which was Rs 30.6 billion last year.
Government companies become the mirror of financial crisis
It has been said in the editorial that if Pakistan’s financial crisis has to be understood on any single scale, then it is the performance of government companies. The report termed it a catastrophic structural failure, which is continuously draining public resources and undermining the country’s economic stability.
National Highway Authority and power companies are the biggest losers.
National Highway Authority and electricity distribution companies are still facing huge losses. According to the editorial, these institutions are suffering from long-standing structural deficiencies and operational inefficiencies. These problems are discussed again and again, but no effective steps are taken towards concrete improvements.
Government increasing GDP on paper
The report also said that the Government of Pakistan is promoting such sectors which show growth in GDP only on paper. Real estate is a prime example of this, where the rich class increases their wealth by investing, but it is not providing any significant benefit in actual business investment or employment creation.
The growing gap between the poor and the rich
According to the report, the real monthly income of the poorest 20 percent of families in Pakistan has declined by about 12 percent since 2019. In contrast, the income of the richest class has registered an increase of 7 percent. This is the situation when the country’s economy was going through a period of decline, the average salary outside the public sector was declining and poverty had increased rapidly.
Common people’s savings are almost gone
It has been said in the report that the savings of common people have almost exhausted. Overall, there has been a huge decline of 66 percent in savings, as families are forced to spend their savings to meet daily needs. This has had a direct impact on health and education, where expenditure has declined by about 19 percent.
According to the report, the current situation is a very worrying sign for the future of Pakistan. If structural reforms and concrete economic decisions are not taken soon, the country’s economic situation may deteriorate further.