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ISLAMABAD:
Continuing its loss-making streak, Pakistan Telecommunication Company Limited (PTCL) posted a net loss of more than Rs10.46 billion in FY2025 despite earning revenue of Rs168.80 billion, while its total assets stood at Rs485.23 billion, the finance ministry has reported.
In its report on the financial condition of state-owned enterprises (SOEs) for the period July 2024 to June 2025, the Central Monitoring Unit (CMU) of the finance ministry highlighted that PTCL’s accumulated losses to date have reached Rs50.15 billion.
The report noted that PTCL recorded a profit of Rs28 billion in 2004-05, the year in which management control of the company was sold to UAE-based telecom operator Etisalat. However, profitability continued to decline in subsequent years, eventually turning negative.
According to the CMU, PTCL reported losses of Rs6.63 billion in FY2023-24, while a year earlier, in 2022-23, the company incurred a loss of Rs15.54 billion.
For the first time, the CMU report described PTCL as a privatised entity, while also noting that the Government of Pakistan retains a 62% ownership stake in the company.
The finance ministry observed that PTCL’s leverage has restricted its financial manoeuvrability, while competitive pressures and operational inefficiencies have further weighed on performance. It recommended debt restructuring alongside operational improvements.
The report stated that PTCL’s high leverage has created a significant debt-servicing burden, reducing financial flexibility and increasing dependence on stable cash flows to meet obligations.
The ministry also referred to the International Finance Corporation loan obtained by PTCL to acquire Telenor Pakistan, warning that failure to meet debt obligations could force the company to liquidate assets, negatively affecting its market position and potentially adding fiscal strain due to the government’s stake.
“Given the government’s stake in PTCL, any financial distress within the company, particularly related to debt defaults on the IFC loan, could translate into fiscal risk for the government,” the CMU said.
It added that currency depreciation or revenue shortfalls could complicate PTCL’s ability to meet dollar-denominated obligations, possibly requiring government support and impacting public finances. The CMU further warned that financial distress at PTCL requiring intervention could strain the federal budget and affect other public services.
