The Cabinet Committee on State-Owned Enterprises met in Islamabad today with the Minister for Finance and Revenue, Senator Muhammad Aurangzeb, in the chair.

The Committee reviewed the Bi-Annual Performance of Federal State-Owned Enterprises for the first half of Financial Year 2025-26, as part of the Government's continued efforts to strengthen transparency, accountability and performance across the federal SOE portfolio.

The Central Monitoring Unit of the Finance Division presented a detailed assessment covering financial and operational performance, profitability and losses, fiscal flows, implementation of approved business plans, governance, financial reporting and progress against key performance targets.

The Committee was informed that profitable SOEs generated aggregate profits of 423.3 billion rupees during July-December 2025, while aggregate losses of loss-making SOEs stood at 342.8 billion rupees.

The performance reflected significant value being generated across several parts of the SOE portfolio, while also underscoring the need for continued corrective action and structural reforms in underperforming entities.

The Committee was informed that Government support to SOEs amounted to 804 billion rupees, while SOE contributions to the Government stood at 839 billion rupees, resulting in a positive net fiscal flow of 35 billion rupees in favour of the Government during the period.

The Committee noted that improving commercial performance, strengthening financial discipline and progressively reducing dependence on public support remain central objectives of the Government's SOE reform agenda.

The review also identified areas requiring sustained attention, including circular debt and other fiscal risks, operational weaknesses in parts of the power and infrastructure sectors, corporate governance gaps and the need for stronger board effectiveness and accountability.

The Committee emphasized continued implementation of approved business plans, measurable performance targets, improved operational efficiency and timely corrective action in underperforming entities.

The Committee was also given a demonstration of the CMU's integrated digital reporting and analytics platform for SOEs.

The Committee welcomed the progress in strengthening the SOE monitoring and reporting framework and emphasized that greater transparency must be accompanied by stronger performance and accountability.

It directed continued focus on financial discipline, governance, operational efficiency and effective implementation of approved business plans across the SOE portfolio.

The Committee reiterated that the Government's objective is to develop an SOE portfolio that is more transparent, professionally governed, financially disciplined and increasingly commercially sustainable, while systematically addressing fiscal risks and reducing the burden of persistently underperforming entities on public finances.

The Committee approved a summary submitted by the Cabinet Division regarding appointment of Independent Directors against vacant positions on the Board of Printing Corporation of Pakistan.

The Committee also considered and approved a summary submitted by the Science and Technology Division regarding appointment of Chairman of the Board of Directors of Indigenous Research and Development Agency in accordance with the State-Owned Enterprises Policy, 2023.

The Committee considered a summary submitted by the Petroleum Division regarding constitution of the Board of Management of Pakistan State Oil Company Limited. The Committee approved the proposed nominations of Independent Directors in accordance with the State-Owned Enterprises (Ownership and Management) Policy, 2023.

The Committee also considered and approved a summary submitted by the Finance Division regarding amendment in the SOEs Policy, 2023 for the monitoring mechanism of IFRS implementation by SOEs.

The Committee also discussed matters relating to SOE reforms submitted by the Finance Division, including measures to strengthen the process for selection and appointment of directors, address delays in board appointments, and ensure greater alignment of candidates' experience and skills with the requirements of respective SOEs.