SOEs: experts raise alarm over ‘economic drain’

ISLAMABAD: Former Governor State Bank of Pakistan (SBP) Shahid Kardar, Wednesday, raised alarm over the economic drain and stressed the need for privatisation. He said that state-owned enterprises (SOEs) are causing Rs1 trillion in losses annually to the national kitty.

Speaking at an event titled, “Numbers and Beyond Budget 2025-26”, Kardar said that there is a dire need to control financial losses from SOEs as such huge resources can be diverted to other sectors with having potential to put the country on the path of economic development. He said that the ongoing Iran-Israel conflict and global instability have further slashed Pakistan’s investment rate.

Economist Dr Manzoor Ahmad, speaking on the occasion, termed the budget a unique fiscal move for its historic subsidy cuts and added that this has provided economy a breathing space and the government must continue such policies in further, so that exports of the countries could be increased.

The event was chaired by Parliamentary Secretary for Information and Broadcasting, Barrister Danyal Chaudhry and co-convened by Dr Nafeesa Shah, MNA, and Sher Ali Arbab, which brought together economists, senators, and provincial representatives to deliberate on fiscal priorities.

In his keynote address, Barrister Chaudhry emphasised provincial fiscal autonomy as key to national developments and said that financial discipline and management is must for the economic growth. He said that the secret to real progress lies in provinces autonomously managing their resources and provinces must adopt fiscal vigilance.

Chairperson Benazir Income Support Programme (BISP), Senator Rubina Khalid, speaking on the occasion, announced the launch of the Benazir Hunarmand Program (BHP) by terming it a timely and strategic intervention to address Pakistan’s growing employment challenges and unlock economic opportunities for underprivileged communities.

Highlighting the importance of skill development, she said with a rising young population and limited employment avenues, especially for marginalised groups, Pakistan urgently needs initiatives that provide sustainable solutions.

“BHP is not just a training initiative— it is a pathway to dignity, self-reliance, and decent work. By equipping low-income families with market-relevant, competency-based skills, we are investing in their future and in the economic progress of the country,” she remarked. She explained that the programme aims to train BISP beneficiaries and their family members in skills aligned with both local market needs and international demand—particularly in sectors like construction, healthcare, hospitality, and information technology. A key focus of the initiative is to prepare participants for employment opportunities in Gulf Cooperation Council (GCC) countries and beyond.

Former Sindh Governor Zubair Umar spotlighted Karachi’s paradox, saying that the metropolis was contributing 70 percent of national revenue, it ranks as the world’s 4th least livable and 2nd most dangerous city as per “The Economist”. While demanding urgent federal government intervention to remove the hurdles in resolving Karachi’s problems, he said that the situation was worsening with each passing day.

Mian Umer Masood, president of the Kissan Association, emotionally stressed agrarian distress and said that at present one and a half litre water bottle costs more than milk which reflects the plight of the agriculture sector. The government must address farmers’ crises immediately, otherwise, the country will face serious food shortage crisis.

Copyright Business Recorder, 2025