Pakistan Telecommunication Company Limited (PTCL), once a flagship telecom entity, now finds itself engulfed in controversy after submitting a dubious investment plan—referred to by critics as the “PTCL shady investment”—to push through its proposed merger with Telenor Pakistan. The Competition Commission of Pakistan (CCP) has summoned PTCL officials for a hearing this Wednesday to seek clarification.
Read More: Etisalat-Controlled PTCL Dodges Parliament Over Land Sale
Amid this merger drama, PTCL is under fire for refusing to pay Rs 41 billion in pension liabilities, leaving thousands of retired employees in limbo. Simultaneously, the company’s financial performance continues to deteriorate at an alarming pace.
According to the Ministry of Finance’s biannual performance report (July–December FY25), PTCL recorded a loss of Rs7.2 billion during the period, pushing its cumulative losses to Rs43.6 billion. The company has now jumped from 10th to 7th place among Pakistan’s top loss-making state-owned enterprises (SOEs).
Ufone: A Failing Burden Dragging PTCL Down: A key reason behind PTCL’s poor performance is Ufone, its mobile arm, which has been consistently losing money—despite access to a strong spectrum portfolio and nationwide infrastructure. While other telecom players in Pakistan are posting healthy profits, Ufone’s cross-subsidization by PTCL has become a matter of serious concern for the federal government.
Finance ministry officials have warned that the proposed acquisition of Telenor Pakistan could worsen PTCL’s financial instability and derail its digital transformation plans.
Etisalat’s Shadow and Chronic Defaults: Critics point to the role of UAE-based Etisalat, which owns 26% of PTCL and holds management control since 2006. Etisalat has yet to clear its longstanding dues of $800 million to the Government of Pakistan, allegedly tied to a land transfer dispute. Despite this unresolved financial conflict, PTCL has controversially started selling off prime properties—raising fresh questions over asset stripping and legal loopholes.
Parliament Snubbed, Transparency Missing: Recently, PTCL officials sparked backlash by refusing to share property sale details with the National Assembly Standing Committee on IT. PTCL’s audacious claim that “no one can interfere in PTCL affairs” led to a strong rebuke from lawmakers, who have now called for action against the company’s management.
What’s more alarming is that PTCL’s property auctioning activities continued even while the parliamentary panel was actively probing the matter, reflecting complete disregard for public oversight.
Once a Profit Powerhouse, Now a National Liability: In 2005–06, PTCL had posted a net profit of Rs20.78 billion—before its management was handed over to Etisalat. Today, the scenario is bleak: ballooning pension dues, Ufone’s losses, lack of transparency, and a merger that could plunge the company further into financial chaos.
With the government of Pakistan still holding a 62% share in PTCL, officials and the public alike are asking: How much longer will this national asset be run in secrecy and at a loss under foreign control?