Finance Ministry Clarifies Rs10.1tr SOE Debt, Says Fresh Borrowing Only Rs164bn
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✧ GENERATE BRIEFING
The Ministry of Finance has issued a formal clarification regarding reports on the total debt of federal state-owned enterprises (SOEs), emphasizing that the widely cited Rs10.1 trillion figure represents a comprehensive, consolidated stock of interest-bearing obligations rather than fresh bank borrowings or a sudden jump in new debt. Responding to media comparisons with State Bank of Pakistan (SBP) statistics, the ministry noted that the datasets differ significantly in scope, methodology, and purpose. According to the official breakdown provided by the Finance Division, the Central Monitoring Unit (CMU) tracking framework encompasses legacy obligations, government lending, and cumulative costs alongside commercial credit. The actual net fresh borrowing during the tracking period stood at approximately Rs164 billion, rather than the implied Rs1.3 trillion surge derived from comparing legacy stock metrics. The ministry stressed that while the SBP's narrower dataset tracks direct banking-system credit (~Rs2.954 trillion).
The Ministry of Finance has clarified that the Rs10.1 trillion debt reported for federal state-owned enterprises (SOEs) represents their consolidated stock of interest-bearing obligations and should not be interpreted as Rs10.1 trillion in fresh bank borrowing.
The clarification followed media reports comparing the debt figure compiled by the Central Monitoring Unit (CMU) with State Bank of Pakistan data. The ministry said the two datasets have different coverage and purposes and therefore cannot be compared on a like-for-like basis.
According to the Finance Ministry, the Rs10.1 trillion figure is a broader measure covering federal SOEs’ interest-bearing obligations. In contrast, the SBP’s figure of Rs2.954 trillion covers borrowing or credit obtained by public-sector enterprises from the banking system.
The ministry said approximately Rs3.1 trillion of the consolidated SOE debt represents bank and private-sector loans. The remaining amount mainly consists of government lending, foreign re-lent loans, accrued markup and rollover costs and other interest-bearing liabilities.
Breakdown of Consolidated SOE Liabilities
The CMU-reported stock comprises several legacy and structural components:
- Bank and Private Loans: Rs3.102 trillion
- Foreign Re-lent Loans (FRLs): Rs2.581 trillion
- Cash Development Loans (CDLs): Rs2.098 trillion
- Accrued Markup and Rollover Costs: Rs2.181 trillion
- Other Interest-Bearing Obligations: Rs0.135 trillion
It further clarified that the increase in consolidated SOE debt from around Rs8.8 trillion to Rs10.1 trillion does not mean that SOEs borrowed an additional Rs1.3 trillion during the period.
Actual Fresh Borrowing and Risk Oversight
Fresh or additional loans during the reporting period amounted to approximately Rs164 billion, the ministry said. The change in the overall debt stock also reflects movements in legacy government lending and foreign re-lent loans, accumulated markup, rollover costs and other existing obligations.
The ministry said the CMU’s broader debt measure is designed to give the government and the Cabinet Committee on State-Owned Enterprises (CCoSOE) a more comprehensive view of SOE indebtedness and associated fiscal risks.
It stressed that treating the entire Rs10.1 trillion figure as fresh bank borrowing would be methodologically incorrect and could give a misleading picture of the increase in SOE debt.
