DUBAI, Sept 17: The Emirates Telecommunications Corporation (Etisalat) said on Monday it planned to cut staff at its Pakistan Telecommunication Company affiliate after it reported a 25 per cent drop in annual profit.
“The fall in profit was expected because the company did not improve its performance that was weighed by high operation costs, especially staff, and low tariffs on incoming international calls,” Jamal al-Jarwan, Etisalat’s chief executive for international investments, told Reuters.
Asked if United Arab Emirates-controlled Etisalat planned to cut staff at Pakistan’s largest telecoms provider, Jarwan said: “Yes”. Pakistan Telecom employs 65,000 people and has 5.7 million customers, according to its website.
The state-controlled firm, which Etisalat manages and of which it owns 26 per cent shares, said last week that profit in the year to June 30 fell as rising competition in the world’s sixth most populous nation cut revenue.
Pakistan Telecom shares, which are up almost 13 per cent this year, closed down 0.4 per cent on Monday.
Etisalat chairman Mohammed al-Omran told Reuters this month that Etisalat was interested in raising its stake in Pakistan Telecom to 51 per cent.
Etisalat also planned for Pakistan Telecom to offer more broadband services allowing faster access to the Internet, Jarwan said. Less than 5 per cent of Pakistan’s population of 165 million had access to broadband services, he said.
“We believe there is great potential in this market,”
Jarwan said, unable immediately to say how much will be invested.
