Despite showing an increase in revenue, Pakistan Telecommunication Company Limited (PTCL) continues to struggle financially, raising serious concerns about its long-term strategy and financial health. According to a recent report by the Central Monitoring Unit (CMU) of the Ministry of Finance, PTCL suffered a loss of Rs7.2 billion in the first half of fiscal year 2024–25.
This pushed the company’s total accumulated losses to Rs43.6 billion. The report also revealed that PTCL has moved up in the list of loss-making state-owned enterprises, rising from the 10th to the 7th position compared to the same period last year. The findings have increased pressure on PTCL’s management to take corrective measures.
Moreover, the Ministry of Finance has expressed concerns over PTCL’s proposed plan to acquire Telenor Pakistan. Officials warned that if this deal is not handled properly, it could further weaken PTCL’s financial position. In addition, the report highlighted that such a move might affect the company’s digital transformation goals and limit its ability to invest in critical sectors in the future.
Adding to the financial burden, PTCL’s unpaid pension liabilities have reached Rs42.84 billion. This growing obligation is putting further pressure on the company’s already strained balance sheet. The report noted that addressing this issue is vital to avoid deeper financial instability in the coming months.
Interestingly, back in fiscal year 2005–06, when PTCL’s management was handed over to the UAE-based company Etisalat, the company had recorded a net profit of Rs20.78 billion. Currently, Etisalat owns 26% of PTCL’s shares, while the Government of Pakistan holds 62%, and the remaining 12% are with public investors.
The PTCL Group also includes Ufone and UBank. While the proposed acquisition of Telenor Pakistan has been called a bold strategic move that could improve PTCL’s market share and customer base, the report warns that significant risks must be carefully managed. Ignoring these could harm the company’s future performance and financial standing.