Q3- Report- 2025

CONTENTS

04

05

06-07

08-10

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 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 nine months ended 30th September 2025.

During the first nine months of 2025, PTCL Group sustained its strong growth trajectory, further reinforcing its position as Pakistan's premier integrated telecom service provider. The Group recorded an impressive 15% year-on-year revenue increase, fueled by robust performance across key segments including fixed broadband, mobile data, business solutions, and microfinance.

PTCL Group achieved revenue of Rs. 188.3 billion, marking a 15% increase year-on-year. The remarkable growth was fueled by a 56% rise in Flash Fiber revenue and a 17% increase in Business Solutions revenue versus the same period in 2024. PTML (Ufone) maintained its strong momentum with a 15% revenue growth, while Ubank recorded an impressive 19% growth over the corresponding period last year.

The Group delivered an operating profit of Rs. 15.9 billion, driven by strong topline growth, cost optimization measures and a stable macroeconomic backdrop. PTCL's operating profit rose by 57% to Rs. 12.9 billion, while Ufone continued strong performance with an operating profit of Rs.

11.9 billion. The Group recorded a net loss of Rs. 11.2 billion, 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 owing to accelerated Expected Credit Loss (ECL) against the unsecured portfolio.

PTCL's rapid expansion of its FTTH network remained a key catalyst for its exceptional revenue growth. The company remained committed to delivering the fastest and most reliable internet experience through its flagship offering, 'Flash Fiber.' Maintaining its leadership as Pakistan's No.1 FTTH service, Flash Fiber crossed a significant milestone of 750,000 subscribers nationwide, representing a 30% growth over the same period last year.

The Business Services segment further strengthened its leadership position, remaining the market leader in IP bandwidth, cloud solutions, data center services, and other ICT solutions.

The Enterprise Business segment delivered a 14% revenue growth compared to the same period last year, supported by strong demand from corporate clients. The Carrier and Wholesale segment maintained its positive momentum, achieving a 24% increase in revenue, while the International segment posted a 6% year-on-year growth.

PTCL also recorded robust growth in IP bandwidth and managed capacity penetration within the Wholesale segment, boosting adoption of emerging digital services such as Content Delivery Networks (CDNs). The company also established strategic partnerships with major CMOs to enhance IP bandwidth and satellite-based connectivity across Pakistan, particularly in AJK and GB, including a landmark collaboration with a leading satellite provider aimed at expanding nationwide broadband access.

PTCL sealed a landmark Trans-Pakistan connectivity agreement with leading Chinese operators, strengthening east-west digital trade routes. In addition, PTCL also achieved a major milestone by executing wet segment capacity sales from Singapore to Marseille through submarine cable partnerships, underscoring Pakistan's growing role in global digital infrastructure.

Ufone sustained its growth trajectory, achieving a 5.9 percentage-point increase in 4G base penetration to reach 69.2% in September 2025. The company also advanced its network modernisation by phasing out 44% of its 3G network and reallocating spectrum resources to strengthen 4G and VoLTE performance.

The Group's digital and financial services portfolio delivered strong momentum. UPaisa recorded

1.2 million monthly active users, reflecting approximately 153% year-on-year growth, while the My Ufone app reached 5.4 million monthly active users, up 65%. Ufone also maintained its leadership in digital recharge penetration.

The Competition Commission of Pakistan granted Phase-II approval for the proposed acquisition of Telenor Pakistan by PTCL, marking an important milestone in the consolidation of the telecom sector. This milestone strengthens PTCL Group's position in the industry, further driving connectivity, expanding digital access, and contributing to the Government's vision of a digitally empowered Pakistan.

The Company also partnered with Mercantile, Apple's authorised distributor in Pakistan, to launch the iPhone 17 series bundled with exclusive offers on Ufone and PTCL Flash Fiber services in Karachi, Lahore, and Islamabad. The partnership offers official, warranty-backed devices with extended warranties, instant insurance coverage, and bundled telecom benefits, providing customers with premium connectivity and an enhanced digital experience in line with PTCL Group's commitment to delivering modern and reliable services.

Building on our success at the Pakistan Digital Awards and Effie Pakistan, PTCL Group has added another milestone by winning four prestigious honours at the Dragons of Pakistan 2025 Awards. The Group earned a Gold Award for 'Dil Se' initiative: Thar Water Plants, a Bronze Award for 'Data Bohhaaat Hai x PSL', and two Black Awards for 'Hockey Hai Pakistan Ki Shaan' and 'Data Bohhaaat Hai Weekly Grand Offer'. These campaigns celebrated Pakistan's spirit, creative excellence and consistent focus on meaningful communication that connects with audiences across Pakistan. Each initiative reflects the purpose and passion that continue to guide PTCL Group's work.

Social Impact: 'Dil Se' Initiatives Making a Difference

Under its flagship social impact platform 'Dil Se', PTCL Group continues to drive meaningful change by establishing strategic partnerships and delivering community-focused programs that promote socioeconomic inclusion, empowerment, and connectivity nationwide.

Following the success of the first phase of the 'Ba-Ikhtiar' program, PTCL Group renewed its partnership with the Pakistan Poverty Alleviation Fund (PPAF) to launch the second phase of the initiative for the economic and digital integration of small-scale women entrepreneurs. The Group has initiated a nationwide registration drive for the expanded program. The rollout will begin with the Christian community in Rawalpindi and the Kalash community in Chitral KP, before expanding to 23 cities across Pakistan to support women entrepreneurs through digital and financial enablement.

PTCL Group is further expanding its partnership with PPAF to address other vital aspects of community well-being. The institutions have signed another MoU to provide access to clean drinking water in underserved regions of Thar and South Punjab through solutions such as reverse osmosis systems, rainwater harvesting plants, and hand pumps, which will benefit over 200,000 people.

Additionally, PTCL Group demonstrated operational resilience following the recent floods that affected several regions of Pakistan. Ufone 4G provided free call minutes in the most impacted districts to help people contact emergency services and their families, while PTCL extended bill discounts on Fixed Broadband services to affected customers. These initiatives reflect the Group's commitment to community welfare and its role as a trusted connectivity partner during times of crisis.

PTCL Group also introduced SUNO, an AI-powered early warning system developed in partnership with ConnectHear to support the deaf and hard-of-hearing community during emergencies and natural disasters. The system delivers sign language video alerts via Ufone's WhatsApp platform, ensuring timely and accessible communication free of cost. This initiative represents PTCL Group's ongoing effort to promote inclusion and public safety through technology.

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

Chairman, Board of Directors PTCL President & Group Chief Executive Officer Islamabad: October 21, 2025

<jsf'/J›:=«yJi42=;*u›.'2/J:‹J.x*V.riJ.t*=.›'‹jJ='

-w%>K (declared liability) $vt›w II

f%.»J"v)'z,s'uj?j'i.r›/J&fi;uirfisa%t.AJv«Jv«.4:y›

STATEMENT OF FINANCIAL POSITION

AS AT SEPTEMBER 30, 2025

September 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

September 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 NINE MONTHS ENDED SEPTEMBER 30, 2025 (UN-AUDITED)

Three months ended Nine months ended September 30, September 30, September 30, September 30,

2025 2024 2025 2024

Note Rs '000 Rs '000 Rs '000 Rs '000

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 NINE MONTHS ENDED SEPTEMBER 30, 2025 (UN-AUDITED)

Three months ended Nine months ended September 30, September 30, September 30, September 30,

2025 2024 2025 2024

Rs '000 Rs '000 Rs '000 Rs '000

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

Chief Financial Officer President & CEO Chairman

Nine 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 NINE MONTHS ENDED SEPTEMBER 30, 2025

Chief Financial Officer

Issued, subscribed and paid-up capital Revenue reserves

General Unappropriated

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

(Rupees in '000)

Balance as at January 01, 2024 (Audited) 37,740,000 13,260,000 51,000,000 27,497,072 38,871,108 117,368,180

President & CEO

Total comprehensive income for the nine months period ended

Third Quarter Report 2025

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 thousand 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.

   On October 1, 2025, the Competition Commission of Pakistan (CCP), through its Phase-II order on the Company's pre-merger application, granted approval for the proposed transaction. The transaction remains subject to other 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

   • Provision 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.

   NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS

   FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (UN-AUDITED)

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:

   2. 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. 16,772,037 thousand. The Company will continue to assess these assumptions periodically in accordance with applicable accounting standards.

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.

September 30, December 31,

2025 2024

(Un-Audited) (Audited)

Note Rs '000 Rs '000

September 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.

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (UN-AUDITED)

1. SHORT TERM RUNNING FINANCE

   These facilities are obtained from various commercial banks with an aggregate limit of Rs 47,050,000 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 0.27% (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 30,000,000 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 minus 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.

   September 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	150,785,896 20,988,092	138,294,889 22,877,614
   	171,773,988	161,172,503

   	September 30,	September 30,
   	2025	2024
   Note	(Un-Audited) Rs '000	(Un-Audited) Rs '000

   9.1 Operating fixed assets Opening net book value Additions during nine months period ended 9.2	138,294,889 27,414,417	123,757,109 23,986,905
   	165,709,306	147,744,014
   Disposals during the period - at net book value	(96,492)	(68,199)
   Depreciation charge for the period	(14,826,918)	(13,512,409)
   	(14,923,410)	(13,580,608)
   Closing net book value	150,785,896	134,163,406
   9.2 Detail of additions during the period:
   Buildings on freehold land	144,906	288,194
   Buildings on leasehold land	194,613	89,046
   Lines and wires	13,849,978	10,942,756
   Apparatus, plant and equipment	12,530,251	11,239,254
   Office equipment	378,843	370,035
   Computer equipment	169,450	150,386
   Furniture and fittings	2,497	4,659
   Submarine Cable	119,311	798,293
   Vehicles	24,568	104,282
   	27,414,417	23,986,905

2. 3 Additions to Capital work-in-progress during the nine months period ended Sep 30, 2025 were Rs 25,733,569 thousand (September 30, 2024: Rs 27,730,044 thousand). Transfers from Capital workin-progress to operating fixed assets during the nine months period ended September 30, 2025 were Rs 27,623,090 thousand (September 30, 2024: Rs 23,941,357 thousand).

3. 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.

September 30, December 31,

2025 2024

(Un-Audited) (Audited)

Note Rs '000 Rs '000

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (UN-AUDITED)

13.1 Bank balance includes Rs 2,982 thousand (December 31, 2024: Rs 212,391 thousand) carrying

profit rates ranging from 2.7% 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 note 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 4.2, 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 thousand under other costs in these statement of profit or loss. The Company has deposited the amount under protest and filed an appeal before Supreme Court against the said order.

      September 30, December 31,

      2025 2024

      (Un-Audited) (Audited)

      Note Rs '000 Rs '000

      14.4 Guarantees and bid bonds issued in favor of : Universal Service Fund (USF) against government grants Others 14.4.1	9,024,499 2,567,260	9,270,431 3,252,806
      	11,591,759	12,523,237
      Corporate guarantee in favor of PTML Corporate guarantee in favor 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).

      September 30, December 31,

      2025 2024

      (Un-Audited) (Audited)

      Rs '000 Rs '000

      14.5 Commitments Contracts for capital expenditure Letter of comforts in favor of PTML	8,964,710 3,500,000	10,275,706 3,500,000
      	12,464,710	13,775,706

      NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS

      FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (UN-AUDITED)

2. REVENUE

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

   Nine months ended September 30, September 30,

   2025 2024

   (Un-Audited) (Un-Audited)

   Rs '000 Rs '000

   Revenue segments
   Broadband and IPTV	41,149,418	36,301,051
   Voice services	6,054,419	6,526,806
   Wireless data	367,908	855,325
   Revenue from retail customers	47,571,745	43,683,182
   Corporate and wholesale	34,184,064	28,449,272
   International	7,840,300	7,403,213
   Total revenue	89,596,109	79,535,667

   1. Revenue is stated net of trade discount amounting to Rs 14,749 thousand (September 30, 2024: Rs 26,209 thousand) and Federal Excise Duty and sales tax amounting to Rs 12,867,364 thousand (September 30, 2024: Rs 12,851,644 thousand).

Nine months ended September 30, September 30,

2025 2024

(Un-Audited) (Un-Audited)

Note Rs '000 Rs '000

16.1 Income from financial assets include Rs 66 thousand (September 30, 2024: Rs 257 thousand) earned from Shariah arrangements.

Nine months ended September 30, September 30,

2025 2024

(Un-Audited) (Un-Audited)

Rs '000 Rs '000

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (UN-AUDITED)

1. TRANSACTIONS AND BALANCES WITH RELATED PARTIES

   Nine months ended September 30, September 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	2,974,823	2,619,512
   ii. Subsidiaries Sale of goods and services	4,689,141	4,606,135
   Purchase of goods and services	990,827	1,615,128
   Mark up on loans	3,728,484	4,288,049
   Long term investment in subsidiary	1,850,000	2,400,000
   Long term loan to subsidiary	10,000,000	13,000,000
   Repayment of long term loans from
   subsidiary	625,000	1,875,000
   iii. Associated undertakings Sale of goods and services	5,533,904	5,548,713
   Purchase of goods and services	865,203	737,847
   iv. Employees contribution plan PTCL Employees GPF Trust - net	50,017	60,518
   v. Employees retirement
   benefit plan Contribution to the plan- Gratuity	119,286	56,908
   vi. The Government of Pakistan
   related entities Charge under license obligations	2,473,050	2,009,453
   vii. Directors, Chief Executive and Fee and remuneration including
   Key management personnel benefits and perquisites	978,967	1,007,650

   September 30, December 31,

   2025 2024

   (Un-Audited) (Audited)

   Note Rs '000 Rs '000

   Period / year-end balances
   Receivables from related parties
   Long term loans to subsidiaries	49,625,000	40,250,000
   Trade debts
   - Subsidiaries	-	626,000
   - Associated undertakings	47,259,467	42,005,179
   Other receivables
   - Subsidiaries	24,188,109	22,200,771
   - Associated undertakings	71,305	71,305
   - Pakistan Telecommunication Employees Trust (PTET)	55,533	25,634
   - Long term loans to executives and key management personnel	96,487	96,680
   Bank deposit with subsidiary	1,611	1,499
   Pakistan Telecommunication Employees Trust (PTET)	20,645,815	2,951,438
   Payables to related parties
   Trade creditors
   - Subsidiaries	1,956,021	1,955,895
   - Associated undertakings	5,032,624	4,316,537
   - The Government of Pakistan related entities	2,913,747	2,293,643
   Payable to subsidiaries on account of group taxation	40,729,884	40,733,736
   Security deposits from subsidiary	12,368	3,623
   Retention money payable to associated undertakings	2,940	2,940
   Technical services assistance fee payable to Etisalat 19.1	54,103,224	48,230,684
   Pakistan Telecommunication Company Limited
   Employees Gratuity Fund	85,733	89,535

   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 offsetting	Offset	Net amount	not in scope of offsetting	statement of financial position
   	Rs '000	Rs '000	Rs '000	Rs '000	Rs '000
   As At September 30, 2025 Trade debts and contract assets	44,929,434	(3,379,866)	41,549,568	25,670,289	67,219,857
   Trade creditors	(4,367,163)	3,379,866	(987,297)	13,662,713	14,650,010
   As At December 31, 2024 Trade debts and contract assets	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 form 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 nine months period ended September 30, 2025 were authorized for issue by the Board of Directors of the Company on October 21, 2025.

Chief Financial Officer President & CEO Chairman

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT SEPTEMBER 30, 2025

September 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