The International Monetary Fund (IMF) has insisted on a detailed report on the financial losses incurred by state-owned enterprises (SOEs) during the first quarter of the ongoing financial year, sources told ProPakistani.
The Finance Ministry has appealed to the lender for an extension on the request, with a commitment to provide the comprehensive report by December 2023. This delay request indicates the ministry’s dedication to furnishing the IMF with accurate and latest data.
Sources said the IMF mission has made it clear that they would not accept outdated data on the financial performance of the SOEs, underscoring the importance of having the most recent and precise statistics for relevant assessment.
The IMF delegation has also inspected the Central Monitoring Unit (CMU), which is responsible for assessing the losses incurred by government-owned enterprises. This inspection is part of the broader effort to improve data accuracy and reporting.
Furthermore, the IMF mission has called upon the CMU team to deliver their initial assessment report as soon as possible. Notably, the team is currently scrutinizing newly acquired data related to SOEs, with the expectation that this task will be completed expeditiously, sources added.
During the negotiations, the caretaker government submitted a report that included data up to the year 2020. This report revealed staggering losses incurred by SOEs, mainly DISCOs, Pakistan International Airlines, and Pakistan Steel Mills, totaling approximately Rs. 500 billion.
Alarming Figures
Official figures recently released show that PIA is grappling with losses amounting to Rs. 13 billion per month, and the national airline’s cumulative losses have now exceeded Rs. 700 billion.
PIA has been incurring losses of approximately $7 billion since 2012. Meanwhile, the electricity distribution companies are incurring losses exceeding Rs. 600 billion. The government has also officially declared Pakistan Steel Mills, which has been dormant since 2005, as a non-performing asset.
Source: Pro Pakistani