Prime Minister Shehbaz Sharif on Tuesday underlined the need to plug Rs850 billion annual losses incurred by state-owned enterprises (SOEs), as well as the need to end circular debt in the power sector.

The premier’s comments came while addressing a special meeting of his cabinet members at Islamabad’s Jinnah Convention Centre to review the government’s one-year performance. The Shehbaz administration took office after the Feb 8 polls, following a power-sharing agreement between the PML-N and the PPP.

PM Shehbaz termed SOEs as “bottomless pits” which needed to be plugged, and emphasised the need to end circular debt in the power sector.

Last month, the Ministry of Fin­ance reported that the aggregate losses of the SOEs were at Rs851bn during 2023-24 and their total loans at Rs9.2 trillion — almost equal to the Federal Board of Revenue’s revenues — and posed serious financial and credit risks.

The premier lauded his cabinet members’ performance and highlighted that in the past year, not a single case of corruption or false allegation surfaced as had been levelled by the opposition. He also urged cabinet members to continue contributing towards economic stability since economic indicators showed a positive trajectory.

He touched upon the Rs20 billion Ramazan package rolled out earlier this week aimed at benefitting four million deserving families, who will receive the financial assistance through digital wallets.

Under the initiative, which he termed a “quantum jump” that would succeed, each family would get Rs5,000. Thus, the new system would “shut doors on all kind of allegations of financial mismanagement which had badly marred the functioning of entities like Utility Stores Corporation”, he said.

PM Shehbaz said his government took up the challenge of saving Pakistan from running into default. “With hard work, the government succeeded in achieving economic turnaround and steering the country out of the financial straits.”

The prime minister said that all macroeconomic indicators were on the high scale and asked cabinet members to continue working hard with dedication since that was a prerequisite for making Pakistan a $1 trillion economy by 2035.

He highlighted government efforts towards economic stability, and expressed confidence that Rs400bn tax cases pending for adjudication in various courts would be decided expeditiously.

He also expressed optimism that with collective efforts, Pakistan would emerge stronger, adding that the journey was dotted with challenges and difficulties but they would traverse the path towards progress and prosperity.