Alarm bells are ringing across Pakistan as government companies spiral into ever-deeper losses, intensifying the country’s economic meltdown. This authoritative report lays bare the scale of the disaster, calling for sweeping changes to avert catastrophe.
Key culprits include power utilities crippled by $15 billion in circular debt, airlines saddled with grounded planes, and railways plagued by derailments—both literal and financial. These firms collectively lost over PKR 1 trillion last year, equivalent to 3% of GDP.
Underlying factors are manifold: chronic underinvestment, union strangleholds, and elite capture. Billions vanish into nepotistic contracts and uncollected revenues, while consumers suffer blackouts and fare hikes.
The broader impact reverberates through society. Youth unemployment hits 10%, remittances falter amid global slowdowns, and poverty rates climb. Central bank interventions prop up the rupee temporarily, but reserves are critically low.
Optimism rests on reform momentum. A new SOE law aims to enforce transparency and performance metrics. Successful models from neighboring countries inspire hope. Yet, political will remains the wildcard. As experts caution, ‘Procrastination is the real enemy.’ Pakistan stands at a crossroads—reform now or reckon with ruin later.