Pakistan Telecommunication Company Limited (PTCL) reported a net loss of Rs. 10.462 billion in FY25, pushing its accumulated losses to Rs. 50.150 billion, according to the Federal State-Owned Enterprises Annual Aggregate Report 2025 released by the Central Monitoring Unit (CMU) of the Finance Division.
Although PTCL is privatized and not classified as a traditional SOE, it was included in the report for reporting purposes due to the government’s shareholding.
The report highlighted a continued decline in PTCL’s legacy product revenues. However, the company contributed Rs. 18.927 billion in other tax payments, reflecting telecom consumption’s role in generating indirect tax revenue.
PTCL is also facing technological obsolescence and slow fiber rollout, mainly due to delayed investment decisions in modern infrastructure.
PTCL’s high leverage has significantly increased its debt-servicing burden, limiting financial flexibility. The situation is further complicated by a dollar-denominated loan from the International Finance Corporation (IFC) related to the $400 million acquisition of Telenor Pakistan.
With rising finance costs and exposure to exchange rate volatility, rupee depreciation increases repayment obligations in local currency terms. Elevated debt levels reduce PTCL’s ability to invest in new projects and increase vulnerability to interest rate hikes.
Failure to manage debt obligations could negatively impact its market position and may even create fiscal exposure for the government due to its stake in the company.
PTCL operates in a highly competitive telecom market alongside Jazz, Zong, and Telenor. Aggressive investment by competitors in technology and service expansion is putting pressure on PTCL to upgrade its infrastructure.
Limited pricing power, rising operating costs, and high finance expenses are squeezing margins and affecting overall profitability.
High finance costs are consuming a significant portion of PTCL’s cash flow, restricting investment in network upgrades, fiber expansion, and service quality improvements.
The report also flagged potential fiscal risk to the government. If PTCL struggles to service its dollar-based IFC loan due to rupee depreciation or revenue shortfalls, government support may be required, putting additional pressure on public finances.
The report suggested measures such as debt restructuring, refinancing, asset sales, currency hedging, operational efficiency improvements, and diversification of revenue sources to manage risks and improve financial stability.
Without structural reforms and strategic investments, PTCL may continue to face financial and competitive challenges in Pakistan’s rapidly evolving telecom sector.
