Transmission of Annual Report PAKD June 2025

Pak Datacom Limited Annual Report 2025

Page #

Company Information 2

Vision Statement, Mission Statement & Core Values 3

PDL Products 5

Notice of Annual General Meeting 13

Chairman's Review 22

Directors Report 24

Independent Auditors' Review Report to Members 45

Statement of Compliance with Listed Companies

(Code of Corporate Governance) Regulations, 2019 46

Independent Auditors' Report 50

Statement of Financial Position 54

Statement of Profit or Loss 55

Statement of Comprehensive Income 56

Statement of Changes in Equity 57

Statement of Cash Flows 58

Notes to and Forming Part of the Financial Statements 59

Pattern of Shareholding 107

Gender Pay Gap Statement. 109

Dividend Mandate Form 110

Income Tax Return Filing Status Form 111

Investors' Education 112

Form of Proxy 113

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Pak Datacom Limited Annual Report 2025

BOARD OF DIRECTORS

1. Syed Zomma Mohiuddin Chairman / Non-Executive Director

2. Ms. Rubina Safir Independent Director / Female Director

3. Engr. Perwaiz Khan Non-Executive Director

4. Syed Junaid Imam Non-Executive Director

5. Mr. Muhammad Izqar Khan Non-Executive Director

6. Mr. Shamim Ahmed Sherazi Independent Director

7. Mr. Muhammad Waheed Non-Executive Director

8. Mr. Ali Saleem Rana Acting Chief Executive / Company Secretary

AUDIT COMMITTEE

1. Ms. Rubina Safir Chairperson

2. Mr. Muhammad Izqar Khan Member

3. Engr. Perwaiz Khan Member

4. Mr. Muhammad Waheed Member

HUMAN RESOURCE & REMUNERATION COMMITTEE

1. Mr. Shamim Ahmed Sherazi Chairman

2. Mr. Muhammad Waheed Member

3. Syed Junaid Imam Member

4. Mr. Ali Saleem Rana Member

PROCUREMENT COMMITTEE

1. Syed Zomma Mohiuddin Chairman

2. Mr. Shamim Ahmed Sherazi Member

3. Engr. Perwaiz Khan Member

NOMINATION COMMITTEE

1. Syed Zomma Mohiuddin Chairman

2. Mr. Muhammad Izqar Khan Member

3. Mr. Muhammad Waheed Member

STRATEGY & PROJECT APPRAISAL COMMITTEE

1. Syed Zomma Mohiuddin Chairman

2. Syed Junaid Imam Member

3. Mr. Muhammad Izqar Khan Member

4. Ms. Rubina Safir Member

COMPANY SECRETARY

Mr. Ali Saleem Rana

CHIEF FINANCIAL OFFICER

Mr. Umar Iqbal Khan (Acting)

REGISTERED OFFICE

1st Floor, Telecom Foundation, TF Complex, TF Headquarters, 7-Mauve Area, G-9/4, Islamabad.

HEAD OFFICE

3rd Floor, Umar Plaza, Blue Area, Islamabad. Tel: (051) 2344123, 2344125, Fax: (051)2344111.

SHARES DEPARTMENT

CDC Shares Registrar Services Limited (CDCSRSL), CDC House, 99-B, Block B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi - 74400. Tel: (92-21) 111-111-500.

AUDITORS

BDO Ebrahim & Co. Chartered Accountants, 3rd Floor, Saeed Plaza, 22-East Blue Area, Jinnah Avenue, Islamabad. Tel: (92-51) 2604461-4.

LEGAL ADVISOR

Ahmed Bashir & Associates, Advocates and Solicitors, 210-A, Sughra Tower, Street # 73, Sector F11/1, Islamabad.

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Pak Datacom Limited Annual Report 2025

VISION STATEMENT

Spreading Technology

• Become the most credible company for digital data communications in Pakistan.

• Become a major innovative technology solutions provider in Pakistan.

• Become a regional and global technology brand.

  CORE VALUES

  • Innovation

  • Performance

  • Integrity

  • Team work

  • Accountability

  • Customer Satisfaction

  • Respect, Tolerance & Equal Opportunity

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Pak Datacom Limited Annual Report 2025

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Pak Datacom Limited Annual Report 2025

VSAT (Very Small Aperture Terminal) is a sophisticated communications technology that allows for the use of small fixed satellite antennas to provide highly reliable communication between a central hub and almost any number of geographically dispersed sites.

With a satellite network, there are no physical limitations in terms of geography or distance to make deployment difficult.

VSAT is also taking on an expanding role in a variety of interactive, on-line data, voice and multimedia applications and is known to have a very high reliability and network availability rate with seamless Upgrade methods.

Salient Features

• Most reliable satellite based 2-way VSAT system

• Network monitoring and management via Network Management System.

• Installation and commissioning of VSAT sites in fastest possible time

• Post-commissioning Services

• 24 x 7 x 365 customer service & support

• Expert engineering team with years of experience in designing similar networks

  PDL offers satellite capacity in the C-band and Ku-band that covers both regional and international markets.

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Pak Datacom Limited Annual Report 2025

iDirect Platform is a C, Ku and Ka-Band, satellite based, end-to-end IP VSAT service running on the world renowned iDirect Technologies platform.

It is engineered to deliver quality broadband connectivity wherever and whenever it's needed. It changes the nature of what satellite communications is capable of achieving, transforming satellite's 'reach' into a mainstream solution able to extend high-speed, secure connectivity to any geography, environment or communications application within the enterprise.

PDL supports multiple customers from various sectors, including Banking, United Nations Organizations, Telecom Providers, Government Departments, Private Sector and Oil & Gas Companies

Salient Features

• O v e r t h i r t y y e a r s o f experience deploying similar networks

• Operational flexibility for affordable, reliable and efficient solutions

• Nationwide footprint for providing fast services

• Support all IP centric applications

• Supports real time traffic management

• Up to 18 Mbps downstream (Hub to Remote)

  PDL has a highly scalable and flexible 5 IF iDirect Hub in Islamabad, Quetta and Karachi designed to support complete enterprise network.

• Up to 4.2 Mbps Upstream (Remote to Hub)

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  Pak Datacom Limited Annual Report 2025

  PDL PRODUCTS

  Data Connectivity Ever since its inception, PDL has been a front liner in providing data connectivity to its International and Local clients. PDL Offers high speed data connectivity to meet the demands of Government, Corporate, Banking and Private Sectors.

  PDL, Data Network has been widely used as long- haul and metropolitan network for low latency and cost-effective solution. PDL data network encompasses Multi-Protocol Label Switching (MPLS), Ethernet, IP and TDMA based data links. Network coverage is available in all major cities and towns.

  Salient Features

• Traffic Switching

• Secure Connectivity

• Interoperability between network devices and network speeds.

• Higher levels of flexibility

• Synchronization between Higher & lower Speed.

• 24 x 7 x 365 customer service & support

• Expert engineering team with years of experience in designing similar networks

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Pak Datacom Limited Annual Report 2025

Data Click is a breakthrough satellite broadband service for users in Pakistan. We offer our customers, anywhere in the coverage area, uninterrupted high-speed internet and VPN. With its state-of-the-art Ka-band multi spot-beam technology, Y1B (YAHSAT) delivers a truly cost-effective broadband service.

Applications:

• Internet via Satellite

• Distance Learning

• Telemedicine

• Internet Cafés

• Voice over IP

• IP-based Corporate Applications

• Satellite News Gathering

  Salient Features

• Small Antenna

• (Dish Size 74cm, 98cm & 120 cm)

• Six New Packages from 2Mbps to 7Mbps

• Flexible Service offering

  Sectors

• Oil & Gas

• Defence

• Enterprise

• Education

• Health Care

  PDL brings cost effective, high bandwidth broadband to Pakistan, a variety of service options for host of different applications.

• NGO

• Construction

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  Pak Datacom Limited Annual Report 2025

  PDL PRODUCTS

  Wireless: PDL provides state of the art Spread Spectrum Radio communication technology for its respected clients. Spread Spectrum is a fast, reliable and High Data Rate communication technology for short distance communication (20-35 Km).

  It can also be used as a last mile option where fiber is not available due to remote conditions.

  PDL offers point to point and point to multipoint Digital Radio System (DRS).

  Salient Features

• Up to 20 - 35 Km

• Operates in point-to-point and point- to- multipoint networks

• Repeater capability for flexible network extension and coverage of difficult terrain

  PDL has wide experience of Design and implementing radio and microwave wireless network for Corporate Networks.

• Optional Omni directional or directional antennas

• 24/7 customer support

• Spares Available in case of any malfunction of the equipment.

  Salient Features

  Kacific's broadband satellites are defined by their high-throughput Ka-band technology using 56 spot beams for concentrated coverage over the Asia-Pacific region, providing up to 60 Gbps capacity and delivering fast, stable internet to remote areas. Key features include high availability (99.97%), use of small, portable user terminals, affordable service costs, and redundancy via localized teleports to mitigate rain fade.

  Pak Datacom and Kacific share a common mission to bridge the digital divide by expanding access to reliable, high-speed connectivity. Pakistan represents a natural opportunity for the deployment of advanced satellite broadband solutions. Through this collaboration with Kacific, we are combining Kacific's cutting-edge satellite technology with the local expertise and trusted presence of Pak Datacom to effectively address the diverse connectivity needs of Pakistan's communities, enterprises, and institutions.

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Pak Datacom Limited Annual Report 2025

Telecom Infrastructure: In compliance to the award of all Pakistan Telecom Infrastructure License, PDL has successfully completed the OFC / OSP laying projects of telecom service providers.

• • Planning, procurement and implementation of Satellite Based Communication System for NLC.

  • Successful completion of OFC laying project of NTC in Lahore city.

  • Strong contender for OFC project (720 km of OFC laying in KPK) of USFCo Pakistan.

  • Efficient O&M of countrywide leased OFC links of PDL.

    Salient Features

• Cost Effective Infrastructure

• BTS (Build to Suit)

• Buy and Lease Solution

• Technical Assistance

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Pak Datacom Limited Annual Report 2025

PDL has 13 offices in the country, 11 round the clock maintenance centers, more than seventy-five engineers and more than sixty other technical staff members.

Online Complaint Management System

https://www.cms.pakdatacom.com.pk

Support Service Email

nmsisb@pakdatacom.com.pk nmskhi@pakdatacom.com.pk nmslhr@pakdatacom.com.pk info@pakdatacom.com.pk

Phone Service

111-PDL-PDL (111-735-735)

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Pak Datacom Limited Annual Report 2025

iDirect & VSAT Coverage

DXX Coverage

Data Click Coverage

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Pak Datacom Limited Annual Report 2025

Notice is hereby given that the 33rd Annual General Meeting of Pak Datacom Limited (the Company) will be held on Monday, October 27, 2025 at 10:30 Hrs at Ramada Hotel, 1 - Club Road, Islamabad, and also through video link (Zoom Application), to transact the following business:

ORDINARY BUSINESS

1. To receive, consider and adopt/ approve the audited accounts of the Company for the year ended June 30, 2025 together with the Chairman Review, Directors' and Auditors' Reports thereon.

   As required under section 223(6) of the Companies Act, 2017 ("the Act"), Financial statements of the Company have been uploaded on the website of the Company, which can be downloaded from the following link / QR code:

   Web Link	QR Code
   https://www.pakdatacom.com.pk/pdf_search.php?year=2024

2. To approve, as recommended by the Board of Directors, the payment of final cash dividend to the shareholders @ 60 % i.e. Rs. 6 per share for the year ended June 30, 2025.

3. To appoint auditors for the year ending June 30, 2026 and fix their remuneration. The retiring Auditors, M/s BDO Ebrahim & Co Chartered Accountants being eligible offer themselves for reappointment.

4. To transact such other business as may be placed before the meeting with the permission of the Chair.

On behalf of the Board

Islamabad October 04, 2025

Ali Saleem Rana Company Secretary

NOTES:

1. PARTICIPATION IN ANNUAL GENERAL MEETING (AGM) THROUGH ELECTRONIC MEANS:

   The Annual General Meeting is being conducted as per guidelines circulated by SECP. The following arrangements have been made by the Company to facilitate the maximum participation of shareholders in the AGM through video link facility, either in-person or through appointed proxies:

   The shareholders intending to participate in the meeting via video link through Zoom are hereby requested to share following information with the Company Secretary Office (through e-mail at cdcsr@cdcsrsl.com not later than October 23, 2025, by providing the following details: -

   Shareholder Name	Company Name	Folio/CDC Number	CNIC Number	Cell Number	Registered Email Address
   	Pak Datacom Limited

   Video-link and login credentials will be shared with the members/proxies whose email containing all the above particulars are received at the given email address by the close of business on October 23, 2025.

   The members can also provide their comments and questions for the agenda items of the AGM on email: companysecretary@pakdatacom.com.pk

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   Pak Datacom Limited Annual Report 2025

2. CLOSURE OF SHARE TRANSFER BOOKS:

   The Share Transfer Books of the Company will remain closed from October 20, 2025 to October 27, 2025 (both days inclusive). Transfers received in order at the Shares Registrar's Office of the Company by the close of business on October 17, 2025 will be treated in time for the purpose of payment of the final cash dividend.

3. PARTICIPATION IN THE ANNUAL GENERAL MEETING:

   A member of the Company entitled to attend and vote at the General Meeting may appoint a Person/representative as proxy to attend and vote in place of member at the meeting. Proxies in order to be effective must be received at Company's registered office duly stamped and signed not later than 48 hours before the time of holding meeting. A member cannot appoint more than one proxy. Attested copy of shareholder's CNIC must be attached with the proxy form.

   1. For Attending the meeting

      1. In case of individuals, the account holder or sub-account holder and/ or the person, whose securities are in group account and their registration details are uploaded as per the regulations, shall authenticate identity by showing his/her original Computerized National Identity Card (CNIC) or original passport at the time of attending the meeting.

      2. In case of corporate entity, the Board of Directors' resolution / power of attorney with specimen signature of the nominee shall be produced at the time of meeting.

   2. For Appointing Proxies

      1. In case of individuals, the account holder or sub-account holder and/ or the person, whose securities are in group account and their registration detail is uploaded as per the regulations, shall submit the proxy form as per the above requirement.

      2. The proxy form shall be witnessed by the two persons whose names, addresses and CNIC numbers shall be mentioned on the form.

      3. Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished with the proxy form.

      4. The proxy shall produce his/her original CNIC or original passport at the time of the meeting.

      5. In case of corporate entity, the Board of Directors' resolution/power of attorney with specimen signature shall be submitted to the Company along with proxy form.

4. CONFIRMATION OF "FILER" STATUS FOR INCOME TAX WITHHOLDING ON CASH DIVIDEND:

   The rates of deduction of Income Tax, under section 150 of the Income Tax Ordinance, 2001, from dividend payments, are as follows:

   1. Rate of tax deduction for filer of income tax returns 15%

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      Pak Datacom Limited Annual Report 2025

   2. Rate of tax deduction for non-filer of income tax returns 30%

      In case of joint account, each holder is to be treated individually as either a filer or non-filer and tax will be deducted on the basis of shareholding of each joint holder as may be notified by the shareholder, in writing to the Company / Share Registrar. If no notification is received, each joint holder shall be assumed to have an equal number of shares.

      The CNIC number / NTN detail is now mandatory and is required for checking the tax status as per the Active Taxpayers List (ATL) issued by the Federal Board of Revenue (FBR) from time to time. According to section 119 of the Companies Act, 2017 and Regulation 19 of the Companies (General Provisions and Forms) Regulations, 2018, all physical shareholders are advised to provide their mandatory information such as CNIC number, address, e-mail address, contact number, International Bank Account Number (IBAN), etc., to our Shares Registrar, CDC Share Registrar Services Limited (CDCSRSL), CDC House, 99-B, Block B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi - 74400. Tel: (92-21) 111-111-500 immediately to avoid any non-compliance of law or any inconvenience.

5. PAYMENT OF DIVIDEND THROUGH BANK ACCOUNT OF THE SHAREHOLDER:

   ` Pursuant to the requirement of Section 242 of the Companies Act, 2017, cash dividend can only be paid through electronic mode directly (MANDATORILY) into the respective bank account designated by the entitled shareholders. Shareholders are requested to provide their bank account details (IBAN format, if not provided earlier) directly to our share registrar (for physical shares) or to their respective participant/ broker (for CDS shares) as the case may be. The subject Form is available at Company's website i.e., https://www.pakdatacom.com.pk. In the absence of shareholder's valid bank account detail by October 17, 2025, the Company will be constrained to withhold dividend of such members.

6. EXEMPTION FROM DEDUCTION OF INCOME TAX / ZAKAT:

   Members seeking exemption from deduction of income tax or are eligible for deduction at a reduced rate are requested to submit a valid tax certificate or necessary documentary evidence as the case may be. Members desiring non-deduction of zakat are also requested to submit a valid declaration for non-deduction of zakat.

   CDC account holders are requested to submit their declaration for non-deduction of zakat to the relevant member stock exchange or to CDC if maintaining CDC investor account.

7. DEPOSIT OF PHYSICAL SHARES INTO CDC ACCOUNTS:

   As per Section 72 of the Companies Act, 2017, every existing listed Company shall be required to replace its physical shares with book entry form in a manner as may be specified and from the date notified by SECP within a period not exceeding four years from the commencement of the Act, May 30, 2017. While SECP vide its letter dated March 26, 2021 has encouraged the shareholders to convert their shares in book-entry form.

   The shareholder having physical shareholding may open CDC sub-account with any of the brokers or investors' account directly with the CDC to place their physical shares into scrip-less form. This will facilitate them in many ways including safe custody, streamline their information in member's register enabling the Company to effectively communicate with the shareholders and timely disburse any entitlements and swift sale/ purchase of shares, as the trading of physical shares is not permitted as per existing regulations of the Pakistan Stock Exchange Limited.

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   Pak Datacom Limited Annual Report 2025

8. CIRCULATION OF THE ANNUAL BALANCE SHEET AND PROFIT AND LOSS ACCOUNTS, AUDITOR'S REPORT AND DIRECTORS' REPORT, ETC. ("ANNUAL AUDITED FINANCIAL STATEMENTS") TO ITS MEMBERS THROUGH QR ENABLED CODE AND WEBLINK:

   In accordance with Section 223(6) of the Companies Act 2017, and as per SECP Notification S.R.O. 389(I)/2023 dated March 21, 2023, and following the approval of shareholders at the 07th Extra Ordinary General Meeting held on Dec 27, 2023, the Annual Audited Financial Statements may be downloaded from the QR enabled code and web-link pasted at agenda # 2. However, shareholders who wish to receive the hard copy of Financial Statements shall have to fill the standard request form (available on the Company's website https://www.pakdatacom.com.pk) and send it to the Company's registered address.

9. UNCLAIMED DIVIDEND AND UNDELIVERED SHARE CERTIFICATES:

   The Company has previously discharged its responsibility under Section 244 of the Companies Act, 2017 whereby the Company approached the shareholders to claim their unclaimed dividends and undelivered share certificates in accordance with the law.

   Shareholders, whose dividends still remain unclaimed and/or undelivered share certificates are available with the Share Registrar, are hereby once again requested to approach the Share Registrar (address in point 4 above) to claim their outstanding dividend amounts and/or undelivered share certificates.

10. SUBMISSION OF COMPUTERIZED NATIONAL IDENTITY CARD (CNIC) FOR PAYMENT OF FINAL CASH DIVIDEND 2024-25:

    Pursuant to the directives of SECP, CNIC number of the shareholders is MANDATORILY required for payment of dividend. Shareholders are therefore, requested to submit a copy of their valid CNIC (if not already provided) to the Share Registrar at the address provided in serial number 4 above. In the absence of a member's valid CNIC, the Company will be constrained to withhold payment of cash dividend to such members.

    CDC account holders are requested to submit attested copy of their CNIC to the relevant member stock exchange or to CDC if maintaining CDC investor account.

11. AVAILABILTY OF AUDITED FINANCIAL STATEMENTS ON COMPANY'S WEBSITE:

    The audited accounts of the Company for the year ended June 30, 2025 will be placed on the Company's website https://www.pakdatacom.com.pk, at least 21 days before the date of AGM.

12. CONSENT FOR VIDEO CONFERENCE FACILITY

    In accordance with Section 132(2) of the Company's Act, 2017, if the Company receives the consent from members holding in aggregate 10% or more shareholding residing in geographical location to participate in the Meeting through video conference at least 07 days prior to the date of the Annual General Meeting, the Company will arrange video conference facility in that city subject to availability of such facility in that City.

13. CHANGE IN PARTICULARS

    The Members are requested to notify any changes in their addresses immediately.

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    Pak Datacom Limited Annual Report 2025

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    Pak Datacom Limited Annual Report 2025

    Dear Shareholders,

    CHAIRMAN'S REVIEW

    It gives me great pride to present the Annual Review for the fiscal year 2024-25, a year that reflects resilience, innovation, and strategic execution. Despite continued macroeconomic headwinds, Pak Datacom Limited (PDL) has once again demonstrated strong performance and delivered record-breaking financial results, reinforcing our position as a leading player in Pakistan's ICT and data communications sector.

    Economic Outlook

    The economic landscape in Pakistan during FY 2024-25 remained complex and challenging. Despite a persistently challenging economic environment marked by elevated fiscal and current account deficits and ongoing geopolitical uncertainty, average inflation remained relatively moderate, ranging between 2.51% and 3.2%, while the exchange rate exhibited relative stability throughout the fiscal year.

    While the national GDP growth rate showed moderate improvement, rising to 3.6% with an estimated target to reach 4.2% from the previous year (Source: SBP), the economic recovery remains fragile. The Government has continued its efforts to restructure fiscal policy, incentivize exports, and attract foreign investment by offering tax concessions, subsidies, and policy level support for strategic industries including ICT.

    Within this uncertain environment, PDL has remained focused on operational efficiency, prudent financial management, and the pursuit of sustainable growth.

    Business Performance

    I am pleased to share that FY 2024-25 has been the most successful year in Pak Datacom's history in terms of revenue generation and operational milestones, recording a revenue of Rs 1.856 Billion.

    This achievement is the result of a deliberate and disciplined approach, centered around expansion into new revenue streams, especially in class value added services i.e., terrestrial as well as satellite connectivity and government sector projects.

    Our success is also underpinned by the effective implementation of the 5-Year Strategic Master Plan, which continues to serve as a blueprint for growth, digital transformation, and organizational excellence.

    Digitization and Technological Advancement

    As industries globally pivot towards automation and digital infrastructure, PDL is positioning itself at the forefront of Pakistan's digital transformation. The acceleration of digitization across public and private sectors presents immense opportunities in areas such as:

    • Satellite broadband and remote connectivity

    • Cybersecurity services

    • Cloud infrastructure

    • Managed services and smart government solutions

      In line with our strategic roadmap, PDL has initiated multiple digital projects aimed at transitioning the organization towards a paperless, agile, and tech-enabled environment, increasing efficiency while ensuring compliance and transparency.

      Strong Governance and Board Effectiveness

      Your Board comprises seven (7) highly qualified professionals, with expertise in telecommunications, finance, public sector, governance, legal, and strategy. Together, the Board has provided active oversight, strategic direction, and risk management to ensure sustainable business continuity and shareholder value.

      In compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2019, an independent annual performance evaluation of the Board was conducted through a structured and quantitative framework. The outcomes were positive and reaffirm the effectiveness and engagement of the Board while identifying areas for continuous improvement.

      Financial Foundation and Future Outlook

      The Company's strong balance sheet, positive cash flows, and debt-free status continue to support long-term investments and new business initiatives. The financial health of PDL remains robust and well-aligned with our growth ambitions.

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      Pak Datacom Limited Annual Report 2025

      Looking ahead, we anticipate further expansion into underserved markets, particularly through satellite-based connectivity solutions, and leveraging public-private partnerships for national-level digital infrastructure projects.

      The key pillars of our strategic vision for FY 2025-26 and beyond include:

    • Expansion of rural and remote connectivity

    • Integration of cloud and cybersecurity offerings

    • Strengthening of government sector engagement

    • Increased focus on ESG and sustainability

    • Continued implementation of the 5-Year Strategic Master Plan

      Commitment to Value Creation

      At the heart of our mission lies a commitment to creating long-term, sustainable value for all stakeholders, from our shareholders and employees to customers and national institutions.

      By continuously aligning our strategic priorities with market trends and technological evolution, PDL is actively working to enhance competitiveness, ensure organizational agility, and drive inclusive digital development in Pakistan.

      Acknowledgement

      I would like to extend my deepest appreciation to the Board of Directors for their foresight and governance and their tireless leadership and execution of strategy.

      To our employees, their dedication, integrity, and perseverance continue to be the foundation of our success. They are one of the main reasons behind this record-breaking year, Alhamdulillah.

      Finally, I express my sincere gratitude to our shareholders for your continued confidence and support. We remain committed to maximizing your returns while upholding the values of transparency, responsibility, and excellence.

      Together, we look forward to another year of opportunity, innovation, and growth.

      Syed Zomma Mohiuddin Chairman, Pak Datacom Limited Islamabad.

      September 30, 2025

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      Pak Datacom Limited Annual Report 2025

      Directors Report

      Dear Shareholders,

      The Board of Directors of Pak Datacom Limited ("the Company") is pleased to present the Annual Report for the fiscal year ending June 30, 2025, along with the accompanying audited financial statements. This report, together with the audited financial statements, underscores our ongoing commitment to executing strategic initiatives and driving the Company's growth and long-term success.

      Financial Performance:

      During the year under review, the Company achieved:

      The company achieved net revenue of Rs. 1,856.6 million, reflecting a 10.13% increase compared to Rs. 1,685.4 million for the previous year. This growth is primarily driven by a significant 119.83% expansion in the Solar business. These results highlight the company's successful diversification into new market segments and its ability to capture a larger market share. The 10.13% revenue growth is a clear indication of the company's expanding sales efforts and its ability to secure additional market share, even in a competitive environment.

      In addition, the company has maintained a stable gross profit margin of 26% within its core business segment despite the challenges the Company has faced constantly rising costs throughout the year. In line with its growth strategy, the company is also making continued investments in infrastructure to support future revenue expansion within this segment.

      Operational Review:

      During the year under review, the PDL Class Value Added Services Business Team continued its efforts to expand into new business verticals while delivering advanced and reliable solutions to our esteemed clientele. With the support of our valued partners and suppliers, the Commercial Team successfully executed several strategic initiatives, including:

    • The deployment of a diverse and protected IPLC setup, utilizing multiple subsea cables to ensure redundancy and maximize network uptime.

    • The implementation of a state-of-the-art 10G IELP solution over international terrestrial routes, further enhancing network capacity and resilience.

      In addition to our core services, PDL has made significant strides in expanding into solar energy and green technology solutions. This strategic move aligns with our commitment to sustainability and provides our clients with eco-friendly, energy-efficient alternatives. Key initiatives include:

    • Expansion into Solar Energy: The Company continued to invest in the solar business, achieving a remarkable 119.83% growth in this segment. This expansion is part of our broader strategy to diversify our service portfolio and meet the increasing demand for sustainable energy solutions.

    • Green Energy Solutions: PDL has also focused on providing green energy solutions to complement its data communication services. These solutions not only help clients reduce their carbon footprint but also contribute to the overall environmental sustainability goals of the Company.

      PDL's strong network of partners has been pivotal in designing and integrating traditional telecom solutions and green energy alternatives, consistently meeting global standards. In many instances, our solutions exceed the offerings of competitors, reinforcing our position as a trusted provider of innovative, future-ready services.

      Future Development, Performance and Position of the Company

      Pakistan's telecom sector is undergoing rapid transformation, influenced by macroeconomic pressures and operational challenges. Despite these hurdles, the industry continues to be a key pillar in the country's digital

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      Pak Datacom Limited Annual Report 2025

      transformation and economic growth. The following outlines the key factors shaping the future development and position of the Company:

      Key Industry Challenges:

    • Macroeconomic Pressures: Weakening Currency and rising energy costs.

    • Regulatory Inconsistencies: Frequent changes in telecom and communications policies.

    • Limited Foreign Investment: A significant constraint on long-term sector growth.

    • Operational Constraints: The challenge of balancing service quality with infrastructure investment.

      Opportunities and Strategic Growth:

      Despite the challenges, several structural strengths underpin the potential for growth in the telecom and data communications sector:

    • Growing Demand for Digital Services: Increasing reliance on data-driven services across both urban and rural regions of Pakistan.

    • Young, Tech-Savvy Population: A critical driver for expanding digital adoption.

    • Rapid Digitalization: Key sectors such as e-commerce, remote work, healthcare, banking, and logistics are becoming increasingly dependent on high-speed data communication.

      Company's Strategic Focus:

      The Company is strategically positioned to capitalize on these opportunities through the following initiatives:

      Network Infrastructure Investments:

      • Expansion of fiber optic networks and data communication systems.

      • Upgrades to existing communication infrastructure to ensure enhanced reliability and speed.

        Technological Integration:

      • AI and IoT Integration: Leveraging emerging technologies to improve service offerings and operational efficiency.

      • Smart Infrastructure: Addressing the growing demand for scalable, digital solutions to support evolving needs.

        Government Support and Regulatory Environment:

    • Regulatory Reforms: Supportive policies aimed at fostering innovation, infrastructure development, and digital inclusion.

    • Tax Incentives and Spectrum Allocation: Government initiatives to create a more favorable environment for growth and investment in digital infrastructure.

      Commitment to Future Growth:

      Looking ahead, the Company remains committed to:

    • Expanding its Service Portfolio: Introducing new data communication services and specialized equipment tailored to evolving customer needs.

    • Strengthening Partnerships: Collaborating with industry leaders and stakeholders to enhance service delivery and technological innovation.

    • Leveraging Cutting-Edge Technologies: Continuously adopting and integrating emerging technologies such

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      Pak Datacom Limited Annual Report 2025

      as AI and IoT to maintain a competitive edge in both local and global markets.

      Although the telecom sector faces significant operational challenges, the Company is strategically positioned to thrive by focusing on:

    • Technological Advancements,

    • Infrastructure Development, and

    • Customer-Centric Service Offerings.

    With these priorities, the Company will continue to play a pivotal role in Pakistan's digital transformation and maintain its leadership in providing high-performance data communication services.

    Risk Management

    The Company recognizes that risk management is a critical aspect of organizational success, enabling the identification, understanding, analysis, and mitigation of potential risks. To this end, the Company has established a comprehensive Risk Management Policy. Below are the key sustainability risks and their corresponding mitigation strategies:

    1. Regulatory Compliance:

       Risk: Non-compliance with local and international regulations presents significant legal and operational risks.

       Mitigation: The Company stays abreast of regulatory changes, maintains robust compliance programs, and conducts regular internal audits to ensure ongoing adherence and continuous improvement.

    2. Operating Risks:

       Risk: Events such as equipment failure or unsafe installation practices can result in financial losses and operational disruptions.

       Mitigation: The Company implements and maintains stringent equipment inspection protocols and enforces safe operational procedures. An emergency response plan is regularly reviewed and updated to address potential incidents.

    3. Ecological Impact:

       Risk: Dependence on fossil fuels, air pollution, and improper waste disposal can harm the environment.

       Mitigation: The Company actively adopts green energy solutions to reduce its carbon footprint and enhance its image as a socially responsible, environmentally conscious business. Additionally, effective waste management practices are implemented to minimize environmental impact.

    4. Cybersecurity Risks:

Risk: The increasing reliance on digital infrastructure exposes the Company to potential cyber-attacks, data breaches, or loss of sensitive information.

Mitigation: The Company ensures cybersecurity measures are in place by regularly updating software and systems to patch vulnerabilities. Employee training on cybersecurity awareness is provided, and clear protocols are established for reporting and responding to any suspected cyber threats or breaches.

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Pak Datacom Limited Annual Report 2025

Six Years Financial Performance at a Glance:

Year Ended 30 June

(Rs. in Million)

1. The financial statements, prepared by management, present a true and fair view of the Company's financial position, results of operations, cash flows, and changes in equity.

2. Proper books of account have been maintained by the Company.

3. Appropriate accounting policies have been consistently applied in the preparation of the financial statements, with accounting estimates based on reasonable and prudent judgment.

4. Accounting and Reporting Standards, as applicable in Pakistan, have been followed in the preparation of the financial statements.

5. The system of internal control is sound in design, effectively implemented, and regularly monitored.

6. There are no doubts regarding the Company's ability to continue as a going concern.

7. There has been no material departure from the best practices of corporate governance as outlined in the listing regulations.

8. Deviations from the previous year's operating results have been appropriately disclosed in the Directors' Report and in the notes to the financial statements annexed to the annual report.

9. The Company does not foresee any corporate restructuring or discontinuation of its operations in the foreseeable future.

10. Key operating and financial data for the last six years, in summarized form, is provided above.

11. All major government levies, payable in the normal course of business as of June 30, 2025, have been settled subsequent to the year-end.

12. The values of investments in employee retirement funds, based on the financial statements for June 30, 2025, are as follows:

• Gratuity Fund Rs 262.102 million

• Provident Fund Rs 63.402 million

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Pak Datacom Limited Annual Report 2025

Safeguarding Company's Record

PDL places a high priority on the safety and integrity of its records. All records are securely retained for the duration required to fulfill legal, administrative, operational, and other business needs. Additionally, the Company maintains a systematic daily backup of its records to safeguard data and ensure its recovery in the event of any unforeseen catastrophe.

BOARD OF DIRECTORS AND ITS COMMITTEES

Role of Chairman

The Chairman heads the Board meetings and ensures effective functioning of the Board. The Chairman acts as a liaison between management and the Board. He has power to set agenda, deliver instructions and signs the minutes of the board meeting. The Chairman ensures that the Directors are properly informed and that sufficient information is provided to enable them to form appropriate judgments. The Chairman evaluates annually the effectiveness of the Board as a whole.

Board Performance

As required under the Listed Companies (Code of Corporate Governance Regulations), 2019, the Board conducts a self-evaluation of its performance on an annual basis. The Board of Directors believe that continuous assessment is critical in determining how effectively the Board has performed against the objectives and goals that they have set for themselves. Based on the results of the evaluation, areas of improvement are identified and corrective action plans are prepared and acted on.

Directors' Remuneration Policy

The Board of Directors is authorized to determine, review and amend from time to time the fee structure for attending the meetings of the Board or any committee of Directors. A Director may also be paid for travelling, hotel and other expenses properly incurred by him in attending and returning from meetings of the Directors or any committee of Directors or General Meetings of the Company. The aggregate amount charged in these financial statements in respect of remuneration to 7 Directors (2024: 7) as on June 30, 2025 was Rs. 11.826 million (2024: Rs. 17.020 million). For details, please refer note No. 35 to these Financials.

A director may be paid such extra remuneration as the Board may determine, for serving on any Committee or devoting special attention to the business of the Company or performance of services which, in the opinion of the Board, are outside the scope of statutory duties of a director.

Board

The total number of Directors are eight including Chief Executive as per following;

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