The Development Academy of the Philippines (DAP), as the focal organization for the APO Center of Excellence on Public-Sector Productivity, curates and analyzes datasets to provide insights into the governance landscape of its member economies. This edition highlights Pakistan’s public sector.
Recent fiscal data and reports from the State Bank of Pakistan underscore the challenges facing the country’s public sector enterprises (PSEs), which are grappling with a mounting debt of PKR 1.7 trillion. Despite international funding, including a substantial loan from the Asian Development Bank (ADB) through the Public Sector Enterprises Reform Programme (PSERP), meaningful reforms have proven elusive. Political sensitivities surrounding the privatization of major PSEs, such as Pakistan International Airlines (PIA) and Pakistan Steel, continue to hinder progress. With increased subsidies and credit guarantees, the government faces ongoing governance and accountability challenges. The urgent need for structural reforms is critical not only for fiscal stability but also for the sustainable development of Pakistan’s economy.
