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.

Pakistan Economic Survey Report 2024-25: The Economic Survey Report of the Government of Pakistan is giving 2024-25 testimony of what bad state the country is in. At present, a total loan of Rs 76,000 billion has been loaded on the country, including Rs 51,500 billion from domestic banks and Rs 24,500 billion rupees. In this way, a loan of more than three lakh rupees has been felt on every Pakistani citizen. Despite such a terrible situation, the Government of Pakistan and the army are busy with efforts to surround India, while the citizens of their country themselves are struggling for bread, electricity, gas and jobs on the ground.

Pakistan Finance Minister Muhammad Aurangzeb has claimed that the country’s economy is in recovery mode and by 2025 GDP growth will reach 2.7%. Pakistan’s GDP growth was -0.2% in 2023. The country’s debt is more than two-thirds of GDP. Due to this, a large part of the annual income is being spent only in paying interest. Export is $ 27.3 billion, while import $ 48.6 billion is not a recovery, but a mere cycle of debt.

IMF and economic ‘Sanjeevani’ depended on foreign countries
Even though there may have been a slight increase in Pakistan’s foreign exchange reserves ($ 16.64 billion), most of it is the result of a loan taken from IMF, World Bank, and Saudi-Amirat. There is a plan to privatize 24 government companies at the behest of IMF. This has claimed to reduce the loss of 800 billion rupees annually, but it is going to fall in the coming time, the country’s employment declines, expensive services prices and a burden on the common man.

Anti-India stance tried to raise ego in poverty
When the government and army of Pakistan do not have the policy and resources to handle their country, they are still increasing the army in POK. Trying to discredit India on international forums. Busy in conspiracy and rhetoric against India, all this is only a political show so that the attention of the people can be diverted from inflation, unemployment and economic plight.