Islamabad – Pakistan Telecommunication Company Limited (PTCL) is facing growing financial distress, with newly released data revealing sharp losses and rising liabilities that threaten its operational future and public credibility.
According to a report by the Ministry of Finance’s Central Monitoring Unit, PTCL recorded a loss of ₨7.2 billion during the first half of the fiscal year 2024–25. This brings its cumulative losses to ₨43.6 billion, pushing the telecom operator into the seventh spot among Pakistan’s most loss-making state-owned enterprises (SOEs)—a notable fall from its 10th position last year.
Historical Contrast
PTCL’s current trajectory marks a stark departure from its past performance. In 2005–06, the company had reported a healthy profit of ₨20.78 billion. Nearly two decades later, those gains have been reversed by persistent financial mismanagement, market disruption, and unresolved liabilities.
Mounting Pension Burden
A critical pressure point is PTCL’s pension-related liabilities, which now stand at ₨42.84 billion. These legacy costs continue to hinder the company’s financial recovery, with no sustainable restructuring strategy yet implemented. The absence of reform in this area poses a long-term risk to both PTCL’s liquidity and the national budget.
Telenor Acquisition Draws Scrutiny
PTCL’s planned acquisition of Telenor Pakistan is drawing significant concern from fiscal policymakers. While the merger may offer strategic advantages such as subscriber growth and operational consolidation, the Finance Ministry has cautioned that the deal—if not handled prudently—could undermine PTCL’s digital transformation plans and further limit its investment capacity in future.
The report warns that the acquisition may overextend PTCL’s resources at a time when stabilizing its core operations should be the priority.
Dual-Control Governance Under Review
The company’s unique governance structure—62 percent state-owned but operationally controlled by UAE-based Etisalat—has led to mixed outcomes. Delays in decision-making, strategic misalignment, and limited accountability have all contributed to PTCL’s present challenges.
Outlook and Strategic Options
Analysts believe PTCL must now pivot toward internal restructuring and fiscal discipline. Key recommendations include:
- Reevaluating or deferring large acquisitions such as the Telenor deal.
- Restructuring pension obligations with federal oversight and asset-backed instruments.
- Streamlining operational costs and focusing on revenue-generating segments.
Without urgent and effective intervention, PTCL risks becoming a long-term liability on the national exchequer, rather than serving as a flagship of Pakistan’s telecom infrastructure.
This story has been reported by PakTribune. All rights reserved.