As the designated focal organization for the APO Center of Excellence on Public-Sector Productivity, the Development Academy of the Philippines (DAP) continues to provide in-depth insights into the public sector profiles of APO member economies. This latest edition shines a light on the public sector profile of Pakistan in its struggle for reforms towards a more stable and sustainable economy.

Recent fiscal data and reports from the State Bank of Pakistan underscore the challenges facing the country’s public sector enterprises (PSEs) as it grapples with a mounting debt of PKR 1.7 trillion. Meaningful reforms have proven elusive despite international funding, including a substantial loan from the Asian Development Bank (ADB) through the Public Sector Enterprises Reform Programme (PSERP). Progress is also continuously hindered by the political sensitivities surrounding the privatization of major PSEs, such as Pakistan International Airlines (PIA) and Pakistan Steel. Facing ongoing governance and accountability challenges due to the increased subsidies and credit guarantees, structural reforms are critical not only for fiscal stability but also for the sustainable development of Pakistan’s economy.