Ministry says the figure reflects total interest-bearing obligations of federal SOEs, not fresh bank borrowing
The Ministry of Finance and Revenue has clarified that the reported Rs10.1 trillion SOE debt represents the consolidated stock of interest-bearing obligations held by federal State-Owned Enterprises (SOEs). It stressed that the amount should not be interpreted as fresh borrowing from commercial banks.
The clarification came in response to media reports comparing data from the Central Monitoring Unit (CMU) of the Finance Division with State Bank of Pakistan (SBP) figures. According to the ministry, the comparison was not made on a like-for-like basis and could give a misleading impression about the scale of new borrowing by SOEs.
CMU and SBP Figures Have Different Scope
The ministry explained that the SBP data cited in the reports covers borrowing and credit obtained by public sector enterprises from the banking system. In contrast, the CMU uses a wider framework that captures the overall interest-bearing obligations of federal SOEs for monitoring fiscal risks.
The SBP’s reported public-sector enterprise bank debt stands at around Rs2.954 trillion, while the CMU’s consolidated SOE debt figure is Rs10.1 trillion. The ministry said the two figures serve different purposes and therefore should not be directly compared.
Bank Loans Account for Around Rs3.1 Trillion
According to the Finance Ministry, the entire Rs10.1 trillion amount does not represent bank borrowing. Bank and private-sector loans account for approximately Rs3.1 trillion of the consolidated stock.
The remaining liabilities largely consist of government lending, foreign re-lent loans, accumulated markup, rollover costs and other interest-bearing obligations. These components can increase the overall debt stock without representing new borrowing during the period.
Fresh Borrowing Stood at Rs164 Billion
The ministry also rejected the impression that SOEs borrowed Rs1.3 trillion in fresh funds after their consolidated debt stock increased from approximately Rs8.8 trillion to Rs10.1 trillion.
It said additional loans during the reporting period were only around Rs164 billion. The overall increase was also influenced by changes in existing government and foreign re-lent loans, accrued markup, rollover costs and other outstanding liabilities.
The ministry emphasized that the CMU’s broader debt framework is designed to provide the government and the Cabinet Committee on State-Owned Enterprises with a clearer assessment of SOE indebtedness and related fiscal risks.