Pakistan Telecommunication Company Ltd (PTCL), the only state-owned enterprise managed by the private sector, reported a loss of Rs7.2 billion in the first half of FY25, raising its accumulated losses to Rs43.6 billion. The biannual performance report from the Ministry of Finance’s Central Monitoring Unit (CMU) also noted PTCL’s rise to the 7th most loss-making SOE, up from 10th in the previous year.
The finance ministry cautioned that PTCL’s proposed acquisition of Telenor Pakistan, while potentially beneficial for market expansion and cost efficiencies, carries significant financial risks. Mismanagement of the acquisition could destabilize PTCL’s finances and hinder its digital transformation efforts.
Outstanding pension liabilities amount to Rs42.84 billion. PTCL’s management control was transferred to UAE-based Etisalat in 2005-06, the year PTCL posted a net profit of Rs20.78 billion. The Pakistani government retains 62% ownership, with Etisalat holding 26%, and 12% publicly traded.
PTCL’s group also includes cellular subsidiary Ufone and microfinance institution UBank. The finance ministry described the Telenor acquisition as a bold strategic move but stressed careful management to avoid jeopardizing PTCL’s financial stability and growth prospects.
