Pakistan Telecommunication Company Ltd (PTCL), a state asset handed over to UAE-based Etisalat under the guise of “private sector efficiency,” continues to hemorrhage public money despite rising revenues. The latest report by the Central Monitoring Unit (CMU) of the Finance Division paints a grim picture of what many now see as a failed experiment in privatization.
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During the first half of FY 2024–25 alone, PTCL recorded a staggering Rs7.2 billion in losses, bringing its total accumulated losses to Rs43.6 billion. Once ranked 10th among the top loss-making state-owned entities (SOEs), PTCL has now moved up to 7th place—a disgraceful climb in financial failure under Etisalat’s management.
Despite 62% ownership by the Government of Pakistan, it’s Etisalat—holding management control—that continues to steer the company into deeper losses. Adding insult to injury, PTCL is burdened with pension liabilities worth Rs42.84 billion, impacting thousands of retired employees while management focuses on expansion rather than responsibility.
The Group’s ambitions to acquire Telenor Pakistan are being hailed as a “strategic leap,” but in reality, it may prove a financial suicide mission. The planned acquisition, involving debt financing, will over-leverage PTCL’s already fragile balance sheet, increasing interest costs and risking further operational instability. Integration risks, system clashes, and customer churn loom large—especially with PTCL’s poor history of performance.
Meanwhile, Ufone, PTCL’s cellular subsidiary, and Ubank, its microfinance wing, are dragging along with no clear roadmap to profitability. These arms, instead of shoring up the Group, are adding layers of inefficiency, poor governance, and financial stress.
High inflation, currency volatility, rising energy tariffs, and suffocating regulatory burdens are putting even more pressure on PTCL’s crumbling finances. The report warns of looming liquidity issues, negative return ratios, and a debt-to-equity ratio exceeding 1,000%—a red flag by any financial standard.
Despite all this, PTCL’s leadership continues to chase risky ventures instead of addressing the rot within. With current liabilities outpacing current assets and chronic underperformance, the Group poses a growing threat to Pakistan’s digital infrastructure and public financial health.
It’s time for accountability. The government must reconsider the Etisalat management agreement and investigate whether public interest has been sacrificed for corporate control. Continued blind faith in PTCL’s management will only deepen the losses, leaving taxpayers to foot the bill for Etisalat’s failures.
