Charter of the Economy Analysis is undertaken of the net budgetary impact of SOEs from 2012-13 to 2020-21, the former with revised estimates and the latter on budget estimates. The results are presented in Table 11.3. There is, no doubt, a significant inflow from the SOEs into the Federal budget, which includes interest payments and dividends. However, it has declined sharply from the peak level of Rs 210 billion in 2017-18 to Rs 85 billion in 2019-20. In particular, the SOE’s ability to service their debt obligations has fallen by 72 percent. However, there is the expectation that the inflow will pick up substantially in 2020-21. This is highly unlikely. Table 11.4: Budgetary Impact of SOEs, 2017-18 to 2020-21 2017-18 (R.E) 2018-19 (R.E) A. REVENUES FROM SOEs 210.0 181.6 · Interest Payment 130.0 121.0 · Dividends 80.0 60.6 B. COST OF SOEs 369.5 487.9 · Contingent Liabilities 195.0 210.0 · Grants to Railway& PSM 38.5 37.0 · Subsidies 108.0 214.8 - WAPDA/ PEPCO 81.5 189.9 - USC 4.0 6.0 - PASSCO 17.5 18.9 - TCP 5.0 ­- PETROLEUM- ­· Settlement of Circular Debt- ­· Loans- 26.1 - PIA- 19.6 - Steel Mill- 6.5 · Others- ­- Equity in CPPA-G- ­C. NET BUDGETARY IMPACT 159.6 226.9 · % of Budget Deficit 6.7 6.3 · % of GDP 0.4 0.6 Source: MOF, Budget Documents 2019-20 (R.E) 85.0 36.9 48.1 704.2 302.5 45.0 317.0 211.0 43.5 15.5 ­47.0 ­33.2 27.1 6.1 ­6.5 487.3 13.5 1.2 (Rs in Billion) 2020-21 (B.E) 153.3 93.3 61.0 708.0 232.0 40.0 149.0 129.0 3.0 7.0 ­10.0 160.0 36.0 20.0 16.0 ­­524.7 14.5 1.1 Turning to the cost of the SOEs to the Federal Budget, there are various components. These are, first, payment against contingent liabilities of guaranteed debt which SOEs are unable to service. Second, there are operating subsidies and loans to SOEs. 118