64% of state-owned enterprises in Pakistan failed to complete audit: Report

A report issued by the Ministry of Finance has revealed serious gaps in financial transparency among state-owned enterprises (SOEs), disclosing that 64 per cent of these entities have yet to complete their audits.

According to the official documents, only 36 per cent of SOEs have finalised their audits, raising concerns over the reliability of financial data used in decision-making. The report highlights that many enterprises are currently operating on interim figures rather than audited accounts.

It notes that decisions involving billions of rupees are being made based on estimates, assumptions and even spreadsheet calculations, rather than verified financial statements. This practice, the report warns, undermines the credibility of enterprise valuations and increases financial risks.

The Finance Ministry stressed that delayed or incomplete audits weaken investor confidence and complicate the government’s efforts to privatise state-owned entities. “Without timely audits, accurate calculations in several financial areas become difficult,” the document stated.

The report underscores a key principle in financial reporting — “no audit, no trust, no investment” — highlighting the critical role of transparency and accountability in attracting investment and ensuring sound economic governance.

Officials cautioned that the lack of audited financials is creating obstacles in privatisation processes while also contributing to broader fiscal challenges faced by the government.

The ministry emphasised the urgent need to complete audits in a timely manner to ensure that investment and economic decisions are based on accurate and verifiable data, rather than assumptions.