ISLAMABAD: Despite generating higher revenues, Pakistan Telecommunication Company Ltd (PTCL) — the only state-owned enterprise (SOE) managed by the private sector — continues to incur losses, raising concerns over its financial health and future strategy.

According to the biannual performance report (July-December FY25) released by the Central Monitoring Unit (CMU) of the Ministry of Finance, PTCL posted a loss of Rs7.2 billion during the period, pushing its accumulated losses to Rs43.6bn.

The report also noted that PTCL has moved up the ranking of loss-making SOEs, rising from 10th position in the first half of FY24 to 7th place in the current fiscal year.

The finance ministry cautioned that the proposed acquisition of Telenor Pakistan by PTCL, if not carefully managed, could further destabilise the Group’s finances. The ministry warned the move may hinder PTCL’s digital transformation goals and limit its ability to invest in core growth areas over the coming years.

Finance ministry flags risks to Telenor acquisition

The report also highlighted PTCL’s outstanding pension liabilities, which stand at Rs42.84bn.

Notably, PTCL had posted a net profit of Rs20.78bn in 2005-06 — the year its management control was handed over to UAE-based telecom firm Etisalat, which acquired a 26pc stake. The government of Pakistan retains a 62pc shareholding in PTCL, while the remaining 12pc is held by public investors through the stock market.

PTCL Group also comprises Ufone, its cellular subsidiary, and UBank, a microfinance institution.

The finance ministry described the planned acquisition of Telenor Pakistan as a bold strategic step to strengthen PTCL Group’s market position. The move promises potential synergies, cost efficiencies, and an expanded subscriber base. However, it also presents significant risks.

Published in Dawn, July 13th, 2025