Q2- Report- 2025

CONTENTS

04

05

06-07

08-09

10

12-13

14

15

16

17

18-28

30-31

32

33

34

35

3

36-47

Board of Directors Corporate Information Directors' Review

Condensed Interim Financial Statements

Independent Auditors' Review Report

Condensed Interim Statement of Financial Position Condensed Interim Statement of Profit or Loss Condensed Interim Statement of Comprehensive Income Condensed Interim Statement of Cash Flows

Condensed Interim Statement of Changes in Equity

Notes to and Forming Part of the Condensed Interim Financial Statements

Condensed Consolidated Interim Financial Statements Condensed Consolidated Interim Statement of Financial Position Condensed Consolidated Interim Statement of Profit or Loss

Condensed Consolidated Interim Statement of Comprehensive Income Condensed Consolidated Interim Statement of Cash Flows

Condensed Consolidated Interim Statement of Changes in Equity

Notes to and Forming Part of the Condensed Consolidated Interim Financial Statements

BOARD OF DIRECTORS

Zarrar Hasham Khan

Abdulrahim A. Al Nooryani Ahad Khan Cheema Imdad Ullah Bosal

4

Jawad Paul Khawaja Nazih El Hassanieh Brooke Marie Lindsay Marwan Bin Shakar Khaled Hegazy

CORPORATE INFORMATION

Hatem Mohamed Bamatraf

President & Group Chief Executive Officer

Mohammad Nadeem Khan

Group Chief Financial Officer

Umer Farid

Group Chief People Officer

Naveed Khalid Butt

Group Chief Regulatory Officer

Zahida Awan

Group Chief Legal Officer &

Company Secretary

Jafar Khalid

Group Chief Technology & Information Officer

Ahmad Kamal

Group Chief Customer Care Officer

Muhammad Shehzad Yousuf

Chief Retail Sales Officer-Fixed Line

Shahid Abbas

Group Chief Internal Auditor

Syed Atif Raza

Group Chief Commercial Officer & Group Chief Marketing Officer

Asif Ahmad

Group Chief Business Solutions Officer

Khawaja Shehzad Ullah

Chief Retail Sales Officer

Syed Mazhar Hussain

Advisor to President & Group CEO

Zahida Awan

Group Chief Legal Officer &

Company Secretary

PTCL Head Office,

Room #17, Ground Floor (Margalla Side), Ufone Tower, Plot #55-C,

Main Jinnah Avenue, Sector F-7/1, Blue Area, Islamabad

Fax: +92-51-2310477

Email: company.secretary@ptclgroup.com Web: https://www.ptcl.com.pk

EY Ford Rhodes

5

Chartered Accountants

Conventional

Allied Bank Limited Askari Bank Limited Bank Alfalah Limited Bank Al Habib Limited Citibank N.A. Deutsche Bank A.G.

Industrial and Commercial Bank of China Faysal Bank Limited

First Women Bank Limited Habib Bank Limited

Habib Metropolitan Bank Limited JS Bank Limited

MCB Bank Limited National Bank of Pakistan Samba Bank Limited Soneri Bank Limited

Standard Chartered Bank (Pakistan) Limited Bank Makramah Limited

The Bank of Khyber The Bank of Punjab United Bank Limited

Zarai Taraqiati Bank Limited Mobilink Microfinance Bank Limited Telenor Microfinance Bank Limited U Microfinance Bank Limited

Pak Kuwait Investment Company (Private) Limited

Pak Brunei Investment Company Limited Pak China Investment Company Limited

Islamic

Al Baraka Bank (Pakistan) Limited BankIslami Pakistan Limited

Dubai Islamic Bank Pakistan Limited Meezan Bank Limited

MCB Islamic Bank Limited

FAMCO Share Registration Services (Pvt) Limited

8-F, Near Hotel Faran, Nursery,

Block-6, P.E.C.H.S., Shahra-e-Faisal, Karachi. Tel: +92-21-34380101-2

Fax: +92-21-34380106

Email:info.shares@famcosrs.com

DIRECTORS' REVIEW

The Directors of Pakistan Telecommunication Company Limited (PTCL) are pleased to present to the shareholders the financial statements of the Company for the half year ended 30 June 2025. The financial statements of the Company have been reviewed by the statutory auditors.

In the first half of 2025, the PTCL Group has maintained its strong momentum, solidifying its position as Pakistan's leading integrated telecom service provider. The Group posted a remarkable 16% year-on-year revenue growth, driven primarily by outstanding performance across key segments such as fixed broadband, mobile data, business solutions and microfinance.

PTCL Group reported revenue of Rs 124.6 billion, reflecting a 16% increase compared to the same period last year. This growth was mainly driven by a 62% surge in Flash Fiber revenue and a 15% increase in Business Solutions revenue compared to the same period of 2024. PTML (Ufone) also demonstrated robust performance, with a 17% rise in revenue, while Ubank recorded an impressive 25% revenue growth compared to the corresponding period last year.

Topline growth coupled with cost optimization measures and a stable macroeconomic environment resulted in posting an operating profit of Rs 9.8 billion by the Group. PTCL operating profit increased by 38% to Rs. 7.9 billion. Ufone posted a strong operating profit of Rs. 7.6 billion. The Group has posted a net loss of Rs. 9.9 billion for the period primarily due to one-off adjustments including recording of additional pension liability as ordered by the Honorable Supreme Court of Pakistan. Further, Ubank's bottom line remained under pressure due to accelerated Expected Credit Loss (ECL) against the unsecured portfolio.

PTCL's rapid expansion of its FTTH footprint has been a key driver of its exceptional revenue growth. Building on the momentum from last year, the company remained focused on providing the fastest and most reliable internet services through its flagship offering, 'Flash Fiber,' which continued to lead as Pakistan's No. 1 FTTH service. Flash Fiber crossed the milestone of 700,000 subscribers nationwide, marking a 39% year-on-year increase in its customer base.

PTCL's Enterprise Business recorded a 14% increase in revenue compared to the same period last year, while the Carrier and Wholesale segment maintained its growth momentum with an 18% overall revenue increase. Additionally, revenue from International segment rose by 10% year-on-year.

The business services segment reinforced its market leadership, retaining its top position in IP bandwidth, cloud services, data centers, and other ICT service areas.

During half year 2025, PTCL experienced strong growth in IP bandwidth and managed capacity penetration within the Wholesale segment, boosting adoption of emerging digital services such as Content Delivery Networks. Strategic partnerships were formed with major CMOs for IP bandwidth and satellite-based connectivity across Pakistan, particularly in AJK and GB, including a landmark alliance with a leading satellite provider to expand broadband access nationwide.

Ufone 4G launched 'Super 5', a flexible connectivity plan for up to five users, offering shared data and voice under a single subscription. Designed for families, friends, and small teams, it provides a simple and cost-effective way to stay seamlessly connected.

PTML's digital sub-brand (ONIC) has crossed 300,000 subscribers in May 2025, marking 132% YoY growth and redefining mobile experiences through a fully digital model tailored to today's user.

Social Impact: 'Dil Se' Initiatives Making a Difference

PTCL Group continued to create meaningful impact through its flagship platform Dil Se, driven by values of digital inclusion, compassion, and innovation. Key initiatives include:

• Under 'Ba-Ikhtiar', talented women entrepreneurs designed the official Peshawar Zalmi kit for PSL 2025. The initiative was featured exclusively on BBC, receiving widespread recognition.

• The AI-powered fashion show presented at the Ba-Ikhtiar graduation ceremony in Islamabad was featured on the World Economic Forum blog, highlighting how technology can foster inclusive progress.

• The Clean Water Project, originally launched to benefit 15,000 people in Thar, is now expanding to reach 200,000 individuals. The next phase will introduce sustainable solutions including wells, reverse osmosis (RO) plants, and rainwater harvesting systems to ensure long-term access to clean drinking water.

Your attention is drawn to note 14.2 of PTCL's interim financial statements for the period, wherein the Hon'ble Supreme Court of Pakistan (SCP), by order dated July 10, 2025, directed the Company to recognize its continuing liability towards former civil servants transferred from the Telegraph & Telephone (T&T) Department to the Corporation and subsequently to the Company, and to record this as a declared liability in line with applicable accounting and corporate law.

The liability covers differential of pension payable in accordance with prevailing standards for similarly placed public servants. The SCP further held that such benefits are not payable to workmen / workers, ex-civil servants who availed Voluntary Separation Scheme, or employees appointed by PTC, and remanded certain Transferred Employees' cases to the High Courts for determination of their civil servant status.

The management and employees of PTCL Group remain committed to providing quality services at competitive prices through concerted efforts to be the partner of choice for our customers and to improve shareholders' value.

On behalf of the Board

Zarrar Hasham Khan Hatem Mohamed Bamatraf

7

Chairman, Board of Directors PTCL President & Group Chief Executive Officer Islamabad: August 28, 2025

(

RO

2025

10

T&T

PTC

28

2025

16

124.6

15 62 16

2024

17

9.9

(ECL

2025 30

25

38 9.8

7.6

)

18

FTTH

39

14

(

10

5 4

2025

◻ ◻

3

132

' '

INDEPENDENT AUDITORS' REVIEW REPORT

TO THE MEMBERS OF PAKISTAN TELECOMMUNICATION COMPANY LIMITED REPORT ON REVIEW OF CONDENSED INTERIM UNCONSOLIDATED FINANCIAL STATEMENTS

INTRODUCTION

We have reviewed the accompanying condensed interim unconsolidated statement of financial position of Pakistan Telecommunication Company Limited (PTCL) as at 30 June 2025 and the related condensed interim unconsolidated statement of profit or loss, condensed interim unconsolidated statement of other comprehensive income, condensed interim unconsolidated statement of changes in equity, and condensed interim unconsolidated statement of cash flows, and notes to the financial statements for the six-month period then ended (here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of the interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Our responsibility is to express a conclusion on these financial statements based on our review.

SCOPE OF REVIEW

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements is not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

OTHER MATTERS

Pursuant to the requirement of Section 237 (1) (b) of the Companies Act, 2017, only cumulative figures for the half year, presented in the second quarter, accounts are subject to a limited scope review by the statutory auditors of the Company. Accordingly, the figures of the condensed interim unconsolidated statement of profit and loss and condensed interim unconsolidated statement of other comprehensive income for the three-month period ended 30 June 2025 have not been reviewed by us.

EY Ford Rhodes Chartered Accountants

Islamabad:

August 29, 2025

UDIN Number: RR202510120BExRzwuHl

STATEMENT OF FINANCIAL POSITION

AS AT JUNE 30, 2025

June 30, December 31,

2025 2024

(Un-Audited) (Audited)

Note Rs '000 Rs '000

Contingencies and commitments 14

The annexed notes 1 to 22 are an integral part of these condensed interim financial statements.

Chief Financial Officer President & CEO Chairman

June 30, December 31,

2025 2024

(Un-Audited) (Audited)

Note Rs '000 Rs '000

Chief Financial Officer President & CEO Chairman

STATEMENT OF PROFIT OR LOSS

FOR THE SIX MONTHS ENDED JUNE 30, 2025 (UN-AUDITED)

Three months ended Six months ended

The annexed notes 1 to 22 are an integral part of these condensed interim financial statements.

Chief Financial Officer President & CEO Chairman

CONDENSED INTERIM

STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2025 (UN-AUDITED)

Three months ended Six months ended

The annexed notes 1 to 22 are an integral part of these condensed interim financial statements.

Chief Financial Officer President & CEO Chairman

Six months ended

The annexed notes 1 to 22 are an integral part of these condensed interim financial statements.

Chief Financial Officer President & CEO Chairman

CONDENSED INTERIM

STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2025

Issued, subscribed and paid-up capital Revenue reserves

General Unappropriated

Class "A" Class "B" Total reserve profit Total

(Rupees in '000)

Balance as at December 31, 2023 (Audited) 37,740,000 13,260,000 51,000,000 27,497,072 38,871,108 117,368,180

Total comprehensive income for the six months period ended Profit for the period ended June 30, 2024

Second Quarter Report 2025

President & CEO

Other comprehensive income / (loss) - net of tax

Chief Financial Officer

- - - - 1,137,062 1,137,062

Balance as at June 30, 2024 (Un-audited) 37,740,000 13,260,000 51,000,000 27,497,072 40,008,170 118,505,242

Chairman

17

The annexed notes 1 to 22 are an integral part of these condensed interim financial statements.

1. THE COMPANY AND ITS OPERATIONS

   Pakistan Telecommunication Company Limited ("PTCL", "the Company") was incorporated in Pakistan on December 31, 1995 and commenced business on January 01, 1996. The Company, which is listed on the Pakistan Stock Exchange Limited (PSX), was established to undertake the telecommunication business formerly carried on by the Pakistan Telecommunication Corporation (PTC). PTC's business was transferred to the Company on January 01, 1996 under the Pakistan Telecommunication (Re-organization) Act, 1996, on which date, the Company took over all the properties, rights, assets, obligations and liabilities of PTC, except those transferred to the National Telecommunication Corporation (NTC), the Frequency Allocation Board (FAB), the Pakistan Telecommunication Authority (PTA) and the Pakistan Telecommunication Employees Trust (PTET). The registered office of the Company is situated at PTCL Head office, Room No. 17, Ground Floor (Margalla side), Ufone Tower Plot No. 55-C, Main Jinnah Avenue, Blue Area, Sector F-7/1 Islamabad.

   The Company provides telecommunication services in Pakistan. It owns and operates telecommunication facilities and provides domestic and international telephone services and other communication facilities throughout Pakistan. The Company has also been licensed to provide such services in territories of Azad Jammu and Kashmir and Gilgit-Baltistan.

   The Company has signed a Share Purchase Agreement with Telenor Pakistan B.V. (Telenor) in 2023 to acquire a 100% stake in Telenor Pakistan (Pvt) Ltd (Telenor Pakistan) and Orion Towers (Pvt) Ltd based on an Enterprise Value of Rs. 108,000,000 thousands on a cash free, debt free basis. The transaction will be financed through a seven year (with one year grace period) US Dollar syndicated Financing Facility amounting to USD 400,000 thousand led by International Finance Corporation (IFC) and the relevant Financing agreements have been signed on June 27, 2024. This transaction is subject to necessary regulatory approvals.

2. STATEMENT OF COMPLIANCE

   These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

   • International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and

   • Provisions of and directives issued under the Companies Act, 2017.

   Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

   These financial statements are the condensed separate financial statements of the Company. In addition to these condensed separate financial statements, the Company also prepares condensed consolidated financial statements.

3. BASIS OF PREPARATION

   These condensed interim financial statements do not include all of the information required in the annual financial statements prepared in accordance with the approved accounting and reporting standards as applicable in Pakistan. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and performance since the last annual financial statements. These condensed interim financial statements should be read in conjunction with the Company's latest annual financial statements as at and for the year ended December 31, 2024.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

   1. The preparation of these condensed interim financial statements in conformity with approved accounting and reporting standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historic experience including expectations of future events that are believed to be reasonable under the circumstances.

      Estimates and judgments made by the management in the preparation of these condensed interim financial statements are the same as those used in the preparation of the audited financial statements of the Company for the year ended December 31, 2024 except for the following:

      As disclosed in Note 14.2, during the period, a change in accounting estimate has been recognized in accordance with IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, as a result of the judgment of the Supreme Court of Pakistan (SCP) in relation to pension litigation.

      Following the SCP's judgment, the Company conducted a revised actuarial valuation for employees entitled to increased pensionary benefits and compensation. This revised valuation was carried out in accordance with prevailing standards applicable to similarly situated civil servants.

      As a result of this reassessment, the following changes in actuarial assumptions and estimates were made:

      • Adjustment to future pension growth rate assumptions for civil servants and others.

      • Incorporation of additional compensation elements mandated by the SCP decision.

        As a result, the loss before tax has increased by Rs. 5,890,142 thousand and Other Comprehensive Income (net of tax) has increased by Rs. 16,804,957 thousand. The Company will continue to assess these assumptions periodically in accordance with applicable accounting standards.

   2. The Company holds an investment in its wholly owned subsidiary, U Microfinance Bank Limited ("the Bank"), which is carried at cost less any impairment, amounting to Rs. 12,933,857 thousand (December 31, 2024: Rs. 11,083,857 thousand).

      As at 30 June 2025, management performed an impairment test to assess whether the carrying amount of the investment in the Bank exceeds its recoverable amount. The recoverable amount was determined based on the value-in-use approach, using the Dividend Discount Model (DDM). The DDM estimates the present value of future expected dividends to be received from the Bank, based on the following key assumptions:

      1. Forecast period: [e.g., 5 years from 2025 to 2029].

      2. Expected dividend payouts: Based on approved budgets and management projections.

      3. Terminal growth rate: 6%.

      4. Discount rate: 17.7%, reflecting the estimated cost of equity, adjusted for the risks specific to the Bank and the microfinance industry.

      Management's projections incorporated expectations of future profitability, regulatory capital requirements, and macroeconomic conditions relevant to the Bank's operations. The Bank's Management forecasts that it will meet all regulatory requirements in due course. Based on the results of the impairment assessment, the recoverable amount of the investment exceeded its carrying amount. Accordingly, no impairment loss was recognized in the financial statements for the period ended 30 June 2025.

      Management believes that the key assumptions used are reasonable and supportable. However, changes in any significant assumptions, such as a material decline in the Bank's profitability or dividend capacity, may impact the recoverable amount in future periods.

5. MATERIAL ACCOUNTING POLICIES

The accounting policies and the methods of computations adopted in the preparation of these condensed interim financial statements are consistent with those followed in the preparation of the Company's audited financial statements for the year ended December 31, 2024 .

June 30, December 31,

2025 2024

(Un-Audited) (Audited)

Note Rs '000 Rs '000

6.1 During the period, the Company entered into a finance agreement dated June 26, 2025 to avail long term finance facility to the extent of Rs. 2,500,000 thousand to meet the capex requirements of the Company. The finance facility is secured by way of hypothecation against assets of the Company, excluding land, building, licenses etc. The loan is repayable in sixteen quarterly instalments commencing from September 30, 2028.

June 30, December 31,

2025 2024

(Un-Audited) (Audited)

Note Rs '000 Rs '000

7.2 Liability has not been settled since State Bank of Pakistan has not yet acknowledged the extension of Technical Service Assistance (TSA) Agreement.

1. SHORT TERM RUNNING FINANCE

   These facilities are obtained from various commercial banks with an aggregate limit of Rs 42,050,000 thousand (December 31, 2024: 31,550,000 thousand) and are secured against 1st pari passu charge on the assets of the Company. These facilities carry markup rates ranging from 1-month KIBOR to 6-month KIBOR plus weighted average rate of 0.31% (December 31, 2024: 1-month KIBOR to 6-month KIBOR plus weighted average rate of 0.17%) per annum.

   This also include shariah compliant, rated, unlisted, unsecured, privately placed short term sukuk amounting to Rs 22,500,000 thousand (December 31, 2024: 20,000,000 thousand) issued to meet the working capital requirements with a tenor of 6 months from the issue date (December 31, 2024: 6 months from the issue date) carrying mark-up rates of 3-month KIBOR plus weighted average rate of 0.02% (December 31, 2024: 3-month KIBOR to 6-month KIBOR plus weighted average rate of 0.13%) per annum. Habib Bank Limited was a mandated lead advisor, arranger and investment agent for the sukuk. The issuer has the right to exercise call option on or after 3 months from issue date.

   	June 30,	December 31,
   	2025	2024
   	(Un-Audited)	(Audited)
   Note	Rs '000	Rs '000

   9. PROPERTY, PLANT AND EQUIPMENT Operating fixed assets 9.1 Capital work-in-progress 9.3	147,261,567 22,819,768	138,294,889 22,877,614
   	170,081,335	161,172,503

   June 30, June 30,

   2025 2024

   (Un-Audited) (Un-Audited)

   Note Rs '000 Rs '000

   9.1 Operating fixed assets Opening net book value Additions during six month period ended 9.2	138,294,889 18,784,584	123,757,109 12,300,524
   	157,079,473	136,057,633
   Disposals during the period - at net book value	(90,039)	(5,841)
   Depreciation charge for the period	(9,727,867)	(8,935,142)
   	(9,817,906)	(8,940,983)
   Closing net book value	147,261,567	127,116,650
   9.2 Detail of additions during the period:
   Buildings on freehold land	134,652	158,998
   Buildings on leasehold land	132,624	28,163
   Lines and wires	9,526,607	4,067,092
   Apparatus, plant and equipment	8,633,901	7,119,258
   Office equipment	83,955	149,975
   Computer equipment	138,414	37,747
   Furniture and fittings	633	3,255
   Submarine Cable	119,311	733,068
   Vehicles	14,487	2,968
   	18,784,584	12,300,524

2. 3 Additions to Capital work-in-progress during the six months period ended June 30, 2025 were Rs 18,908,210 thousand (June 30, 2024: Rs 18,713,765 thousand). Transfers from Capital workin-progress to operating fixed assets during the six months period ended June 30, 2025 were Rs 18,959,764 thousand (June 30, 2024: Rs 12,369,786 thousand).

3. LONG TERM INVESTMENTS

During the period, the Company made an additional investment amounting to Rs. 1,850,000 thousand in its wholly owned subsidiary, U Microfinance Bank Limited. Furthermore, the Company continues to support its subsidiaries to meet their regulatory and capex requirements.

June 30, December 31,

2025 2024

(Un-Audited) (Audited)

Rs '000 Rs '000

June 30, December 31,

2025 2024

(Un-Audited) (Audited)

Note Rs '000 Rs '000

13.1 Bank balance includes Rs 19,645 thousand (December 31, 2024: Rs 212,391 thousand) carrying

profit rates ranging from 4.5% to 9.5% (December 31, 2024: 7% to 21%) per annum from Shariah arrangements.

1. CONTINGENCIES AND COMMITMENTS

   There has been no material change in contingencies as disclosed in the last audited financial statements of the Company for the year ended December 31, 2024, except in 14.1, 14.2 and 14.3 as disclosed below:

   1. For the tax years 2007, 2009, 2010, 2011 to 2023, Taxation Officer disallowed certain expenses, tax credits and levied short deduction of Withholding Tax (WHT). The impugned orders were challenged at the relevant appellate forums which allowed partial relief thereof. After taking into account the orders of CIR (Appeals), ATIR as well as rectification orders tax impact of the disallowances is Rs 51,115,762 thousand. Appeals on the remaining outstanding items are pending adjudication before ATIR. Reference in respect of 2007 is subjudice before the Honorable Islamabad High Court. Stay has been obtained in all cases from different fora. The CIR (Appeals) have remanded back the disallowances relating to tax years 2014 and 2020 having tax impact of Rs. 5,937,972 thousand to Taxation Officer.

   2. This relates to pension litigation disclosed in note 14.7 of the Company's financial statements for the year ended December 31, 2024. By order dated July 10, 2025, the Honorable Supreme Court of Pakistan (SCP) directed the Company to recognize its continuing liability towards former civil servants transferred from the Telegraph & Telephone (T&T) Department to the PTC and subsequently to the Company, and to record this as a declared liability in line with applicable accounting and corporate law.

      The liability covers differential of pension payable in accordance with prevailing standards for similarly placed public servants. The SCP further held that such benefits are not payable to

      workmen/workers, ex-civil servants who availed Voluntary Separation Scheme (VSS), or employees appointed by PTC, and remanded certain transferred employees' cases to the High Courts for determination of their civil servant status.

      To comply, the Company engaged an independent legal advisor to determine such transferred employees who being civil servant at the time of their transfer are entitled to increase in pension and has recognized an amount of Rs. 5,890,142 thousand, as past service cost in the statement of profit or loss, based on its best estimate of expenditure required to meet its obligation as determined by the SCP. In this respect, the Company had also engaged independent actuary to calculate additional pension liability (refer to note 4.1, for changes in underlying actuarial assumptions).

      Based on this exercise, adequate provision has been made, and based on legal advice, any potential adverse findings from the High Courts are not expected to materially impact the financial statements.

   3. This relates to the Competition Commission of Pakistan (CCP) litigation as disclosed in Note 14.8 of the Company's financial statements for the year ended December 31, 2024. Pursuant to the proceedings, the Competition Appellate Tribunal, vide its order dated August 11, 2025, has imposed a penalty on the Company equivalent to 2% of the turnover from the relevant period, generated by Long Distance and International (LDI) operations solely through International Clearing House (ICH) linked activities. In compliance with this order, the Company has recognized a penalty amounting to Rs. 458,830 thousands under other costs in the statement of profit or loss.

      June 30, December 31,

      2025 2024

      (Un-Audited) (Audited)

      Note Rs '000 Rs '000

      14.4 Guarantees and bid bonds issued in favour of : Universal Service Fund (USF) against government grants Others 14.4.1	9,041,340 3,141,187	9,270,431 3,252,806
      	12,182,527	12,523,237
      Corporate guarantee in favour of PTML Corporate guarantee in favour of Ubank	71,497,000 -	65,497,000 10,000,000
      	71,497,000	75,497,000

      14.4.1 Others includes bank guarantee given on behalf of DVCOM Data (Private) Limited to PTA amounting to Rs 675,000 thousand (December 31, 2024: Rs. 675,000 thousand).

      June 30, December 31,

      2025 2024

      (Un-Audited) (Audited)

      Rs '000 Rs '000

      14.5 Commitments Contracts for capital expenditure Letter of comforts in favour of PTML	8,178,979 3,500,000	10,275,706 3,500,000
      	11,678,979	13,775,706

2. REVENUE

   The Company generates revenue from the following performance obligations of its telecommunication services.

   Six months ended

   June 30, June 30,

   2025 2024

   (Un-Audited) (Un-Audited)

   Rs '000 Rs '000

   Revenue segments
   Broadband and IPTV	26,965,190	23,776,262
   Voice services	4,045,386	4,224,922
   Wireless data	246,515	655,192
   Revenue from retail customers	31,257,091	28,656,376
   Corporate and wholesale	22,378,711	19,227,317
   International	5,275,966	4,816,735
   Total revenue	58,911,768	52,700,428

   1. Revenue is stated net of trade discount amounting to Rs 9,999 thousand (June 30, 2024: Rs 21,341 thousand) and Federal Excise Duty and sales tax amounting to Rs 8,569,728 thousand (June 30, 2024: Rs 7,915,444 thousand).

Six months ended

June 30, June 30,

2025 2024

(Un-Audited) (Un-Audited)

Note Rs '000 Rs '000

16.1 Income from financial assets include Rs 66 thousand (June 30, 2024: Rs 165 thousand) earned from Shariah arrangements.

Six months ended

June 30, June 30,

2025 2024

(Un-Audited) (Un-Audited)

Rs '000 Rs '000

1. TRANSACTIONS AND BALANCES WITH RELATED PARTIES

   Six months ended

   June 30, June 30,

   2025 2024

   (Un-Audited) (Un-Audited)

   Rs '000 Rs '000

   Relationship with the Company Nature of transaction
   i. Shareholders Technical services assistance fee
   - note 19.1	1,931,011	1,734,092
   ii. Subsidiaries Sale of goods and services	3,168,194	3,102,760
   Purchase of goods and services	663,083	1,268,067
   Mark up on loans	2,539,116	2,849,230
   Long term investment in subsidiary	1,850,000	2,400,000
   Long term loan to subsidiary	-	5,000,000
   Repayment of long term loans from
   subsidiary	416,667	1,250,000
   iii. Associated undertakings Sale of goods and services	3,447,251	3,713,744
   Purchase of goods and services	595,548	520,077
   iv. Employees contribution plan PTCL Employees GPF Trust - net	201,429	60,518
   v. Employees retirement
   benefit plan Contribution to the plan-gratuity	63,009	56,908
   vi. The Government of Pakistan
   and its related entities Charge under license obligations	1,659.704	1,326,035
   vii. Directors, Chief Executive and Fee and remuneration including
   Key management personnel benefits and perquisites	747,276	698,403

   June 30, December 31,

   2025 2024

   Note	Rs '000
   Period / year-end balances
   Receivables from related parties
   Long term loans to subsidiaries	39,833,333	40,250,000
   Trade debts
   - Subsidiaries	974,582	626,000
   - Associated undertakings	45,664,864	42,005,179
   Other receivables
   - Subsidiaries	24,721,223	20,826,902
   - Associated undertakings	71,305	71,305
   - Pakistan Telecommunication Employees Trust (PTET)	43,798	25,634
   - Long term loans to executives and key management personnel	77,131	96,680
   Bank deposit with subsidiary	1.,580	1,499
   Pakistan Telecommunication Employees Trust (PTET)	20,790,698	2,951,438
   Payables to related parties
   Trade creditors
   - Subsidiaries	1,955,000	1,955,895
   - Associated undertakings	4,812,774	4,316,537
   - The Government of Pakistan and its related entities	2,128,361	2,293,643
   Payable to subsidiaries on account of group taxation	40,729,884	40,733,736
   Security deposits from subsidiary	3,653	3,623
   Retention money payable to associated undertakings	19,672	2,940
   Technical services assistance fee payable to Etisalat 19.1	52,116,196	48,230,684
   Pakistan Telecommunication Company Limited
   Employees Gratuity Fund	134,970	89,535

   (Un-Audited) (Audited) Rs '000

   1. This represents the Company's share of fee payable to Emirates Telecommunication Corporation (Etisalat) under an agreement for technical services at the rate of 3.5% of Pakistan Telecommunication Group's consolidated revenue.

2. OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES

   Amount Net as per

   	Gross amounts subject to setoff	Offset	Net amount	not in scope of offsetting	statement of financial position
   	Rs '000	Rs '000	Rs '000	Rs '000	Rs '000
   As At June 30, 2025 (Un-Audited) Trade debts and contract assets	44,654,809	(2,264,724)	42,390,085	23,758,630	66,148,715
   Trade creditors	(3,259,006)	2,264,724	(994,282)	(12,435,630)	(13,429,912)
   As At December 31, 2024 (Audited) Trade debts	43,809,880	(5,649,369)	38,160,511	22,402,669	60,563,180
   Trade creditors	(6,624,898)	5,649,369	(975,529)	(12,288,692)	(13,264,221)

3. FINANCIAL RISK MANAGEMENT AND FAIR VALUES

   The Company's financial risk management objectives and policies are consistent with that disclosed in the annual financial statements for the year ended December 31, 2024. There is no change in the nature and corresponding hierarchies of fair value levels of financial instruments from those as disclosed in the audited financial statements of the Company for the year ended December 31, 2024.

   The carrying amount of all financial assets and financial liabilities are estimated to approximate their fair values.

4. DATE OF AUTHORIZATION FOR ISSUE OF CONDENSED INTERIM FINANCIAL STATEMENTS

   1. These condensed interim financial statements for the six months period ended June 30, 2025 were authorized for issue by the Board of Directors of the Company on August 28, 2025.

Chief Financial Officer President & CEO Chairman

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT JUNE 30, 2025

June 30, December 31,

2025 2024

(Un-Audited) (Audited)

Note Rs '000 Rs '000

Contingencies and commitments 11

The annexed notes 1 to 22 are an integral part of these condensed consolidated interim financial statements.

Chief Financial Officer President & CEO Chairman