PTA Income Falls Over 62% in Three Years

The Auditor General of Pakistan (AGP) has reported a significant decline in the financial performance of the Pakistan Telecommunication Authority (PTA), attributing the reduction primarily to the prolonged delay in the auction of 5G spectrum and other regulatory challenges affecting the telecommunications sector.

According to the latest audit report, PTA’s total income declined by more than 62% over the past three financial years, decreasing from Rs94.1 billion in FY2022-23 to Rs35.3 billion in FY2024-25.

During the same period, the regulator’s total expenditure increased from Rs3.321 billion to approximately Rs5 billion, primarily due to rising employee-related costs, higher administrative expenditure, and increased legal expenses.

The report further noted that the authority’s reduced earnings significantly affected its contribution to the national exchequer. PTA’s overall revenues reportedly fell from Rs109.254 billion in 2022 to Rs34.556 billion in 2025, representing an overall decline of nearly 68%.

Consequently, the surplus funds transferred by PTA to the Federal Consolidated Fund (FCF) also declined substantially, falling from Rs102.542 billion in 2022 to Rs28.431 billion in 2025.

The Auditor General cautioned that, in the absence of timely corrective measures, PTA’s annual revenue could further decline to approximately Rs4.637 billion, raising concerns over the regulator’s long-term financial sustainability.

According to the audit, PTA’s financial position has been adversely affected by delays in spectrum auctions, increasing operational expenditures, unresolved legal disputes, and challenges relating to the recovery of regulatory dues.

The report also highlighted disparities in the development of Pakistan’s telecommunications sector, noting that rural and remote regions continue to experience comparatively weaker service quality and slower broadband connectivity than major urban centres.

The audit observed that while the sector has experienced quantitative growth in terms of subscribers and network expansion, improvements in service quality and digital infrastructure have not progressed uniformly across the country.

The Auditor General also expressed concern regarding pending litigation involving telecom operators, stating that recovery of outstanding regulatory dues has increasingly become dependent upon the outcome of judicial proceedings.

The report noted that delays in recovering Annual Regulatory Dues (ARDs) have had a direct financial impact on the federal exchequer by reducing expected government receipts.

In addition, the audit identified governance and internal control deficiencies within the regulator, including the preparation of PTA’s FY2024-25 financial statements under accounting policies that had not received formal approval from the Federal Government.

The AGP further warned that if current expenditure trends continue, employee-related costs alone could consume approximately 88.13% of PTA’s projected revenues by 2026, placing additional pressure on the authority’s financial position.

To improve financial sustainability and strengthen sector regulation, the Auditor General recommended conducting timely spectrum auctions, aligning regulatory decisions with Pakistan’s long-term technological development objectives, and bringing data centres and emerging ICT infrastructure within a comprehensive licensing and regulatory framework.

The report also recommended stronger enforcement measures for the recovery of outstanding regulatory dues, imposition of penalties for non-compliance based on mandatory Quality of Service (QoS) assessments, and initiation of criminal proceedings in cases involving organised telecommunications fraud.

Furthermore, the Auditor General advised the Pakistan Telecommunication Authority to strengthen internal financial controls, exercise greater discipline over employee compensation and benefits, and obtain formal approval from the Federal Government for its accounting policies to ensure compliance with applicable financial reporting standards.