CHAPTER 1

INTRODUCTION TO THE REPORT

INTRODUCTION TO THE REPORT
At Qurtuba University D.I.Khan this is essential degree requirement for the
students of MBA to complete internship program of eight ee! in ell"reputed
organi#ation. Internship riting follos the report$ hich is the integral part in the
fulfillment of the requirements for the degree of MBA. %he report encompasses the
!noledge of the internee that he obtains during his course of study in the organi#ation$
his learning and analysis his e&perience that he has during internship in the light of hich
recommendation are made. %hese recommendations may benefit the organi#ation
concerned for further improvements in its performance.
%he supervisor assigned to the internee guides the hole process of report riting.
After its completion the report is submitted to the Qurtuba University D.I.Khan. %he
report is properly analy#ed by the Qurtuba University on its descriptions ill as on the
analytical capabilities of its riter$ and proper grades assign to the riter.
%his internship report has been ritten on '%() *orthern %elecommunication
+egion"I, D.I.Khan
BACKGROUND OF THE STUDY
%he %elecommunication sector around the orld is going through a process of
rapid change in information technology and convergence ith focus on mobile Internet
and value added services. In line ith global trend and for meeting emerging demand$
ma-or initiatives have been ta!en by '%() to up grade it netor!. And also to introduce a
range of ne value added services. develop a portfolio of information technology$
Internet bandidth related services and should revise it organi#ation structure to ma!e it
more conducive to deal ith the change and commerciali#ation process to enhance the
revenue potential of the company.
,
%he socio economic groth of a developing country depends mainly on the
%elecommunication sector and its involvement in information technology. %ele mar!eting
and /"commerce ma!e it an integral organ of the overall development of the country.
PURPOSE OF THE STUDY
%o fulfill the requirements for the degree of MBA in Qurtuba University
D.I.Khan.
%o do practical or! in the relevant field and apply the !noledge gain
during the course of studies in real orld.
%o understand ho various operations are carried out in the organi#ation
of real orld0
%o perform financial and other analysis of organi#ation.
%o ma!e possible recommendations in the light of analysis to improve
long report riting s!ills.
SCOPE OF THE STUDY
1tudents are required to speciali#e in only one department or to cover the
complete organi#ation in case of small organi#ation. As for as I am concerned I have
or!ed in 2inance department of 'a!istan %elecommunication (ompany at %+"II
3*orthern %elecommunication +egion"I,4 %elephone house D.I.Khan. In 2inance
department I have particularly study the directorate of operation and maintenance$
directorate of receipts and revenue and directorate of budget and payment. It as not
possible for me to go through each and every aspect of the company due to the restriction$
hich as officially proclaimed for eight ee!s$ hoever I have tried my best to cover
some of the basic and important aspects of the study.
METHODOLOGY OF STUDY
%he data collected for the analysis and revie includes both primary and
secondary data. %he methods used for collecting primary and secondary data are as
follo5
6
Primary data:
Data collected for the first time is called primary data. %he method used to collect
such data includes5
'ersonal observations
Discussions
Intervies
Se!"dary data:
%he data collected earlier by some one else and hich has gone through
mathematical and statistical techniques after its collection$ is called secondary data.
Methods used to collect secondary data include5
'%() Annual +eports
'%() Brochures
'%() Manuals
(ircular and *esletters
Internship +eports on '%()
7ournals and *espapers
Internet
LIMITATIONS OF THE STUDY
*one of the human made things can be considered perfect. 8nly things created by
divine are perfect and error free. *o matter ho carefully a study or research is
carried out it ill not be perfect and complete in all respects. %his study as
conducted in conformity ith the ob-ectives of study. hoever the study is sub-ect to
folloing limitations.
%he study does not include broad e&planation of facts and figure due to the
folloing factors5
%he nature of the study.
%he %elecommunication company official ere not illing to e&plain
all the things regarding their organi#ation and its operations$ ma!ing it
9
difficult to gather information about and understand different technical
operations.
All the facts regarding company cannot be presented due to the
problems of secrecy.
All the required data as not available because the documents and files
area !ept confidential.
%hrough financial analysis as not possible due the limitation of
information in the company annual reports.
Data required for carrying out through :+ and 1;8% Analysis as
not available.
%he internees are not provided ith opportunities of doing things
themselves during internship$ ma!ing it difficult for them to
understand technical things. %his also affects the quality of the study
resulting report.
)imited financial and technical resources also affected the analysis.
)imited duration of internship ma!es the analysis restricted because all the technical
operation of the company cannot be understood and analy#ed in only to months.
<
A##e"di$ %A&
BOARD OF DIRECTORS OF PTCL
MR. NAGUIBULLAH MALIK
Chairman PTCL Board
Secretary IT & Telecom Division, Ministry of Information Technology
Government of Pakistan,
Islamabad
MR. ABDULRAHIM ABDULLA ABDULRAHIM AL NOORYANI
Chairman & Chief Eec!tive "fficer,
Etisalat International Pakistan #$#$C
Eec!tive %ice President Contracts & &dministration
Etisalat, '&E$
MR. SALMAN SIDDIQUE
Secretary ()inance*, Ministry of )inance
Government of Pakistan,
Islamabad
MR. ABDULAZIZ AHMED SALEH AHMED AL SAALEH
Chief +!man ,eso!rces "fficer
Etisalat, '&E
MR. MUSHTAQ AHMAD BHATTI
Member Telecom
Government of Pakistan,
Islamabad
MR. !ADHIL MOHAMED ERHAMA AL ANSARI
Eec!tive %ice President Engineering
Etisalat, '&E
MR. KHURSHEED AHMED "UNE"O
&mbassador, Embassy of Pakistan
&b! Dhabi, '&E
MR. ABDULAZIZ HAMAD OMRAN TARYAM
General Manager, -orthern Emirates
Etisalat, '&E
DR. AHMED AL "ARAN
General Manager
,eal Estate
Etisalat, '&E
MS. !ARAH QAMAR
Com.any Secretary PTC#
PTC# +ead/!arters,
Islamabad
A##e"di$ %B&
=
DETAIL OF EMPLOYEES IN PTCL
S'NO GRADE (OB DESCRIPTIONS NO)* OF EMPLOYEES
, M"I 'resident >,
6 M"II 1enior /&ecutive ?ice 'resident >=
9 M"III (ompany 1ecretary >,
< B"6, /&ecutive ?ice 'resident ,=
= B"6> @eneral Managers$ (hief /ngineers A>
B B",C Directors$ Dy. (hief /ngineers 9<D
A B",D D/s$1r. )ecturers$ 1A8s ,D9=
D B",A AD/s$ Aos$ DA8s$ A.D. Aes 6BCA
C B",B /ss 1election @rade <><
,> B",=
Data Asstt5$ Assistant$ 1A($
1tenographer
=CD
,, B",< 1teno typist 1election grade 6D6
,6 B",9 Khateeb 66,
,9 B",6 1teno typist 9BC
,< B",, 1A( 6D=
,= B",> %echnician 1election grade =,<
,B B">C UD(Es 1election grade <<B
,A B">D %elecom. %echnicians AD=<
,D B">A UD(s$A(s$ %os ,9<,<
,C B">B Drivers 1election grade 99A
6> B">= )D(s$7A(s 6<,B
6, B">< )inemanEs$ Drivers. ,9>=D
66 B">9 ;iremanEs. 66,D
69 B">6 *FQ.).($(ho!idars$etc. B9A
6< B">, *FQ$ (ho!idars$ seepers$ malietc. =B6>
B
A##e"di$ %C&
ACCOUNTING CODE RANGE
MAIN CODE CODE RANGE DESCRIPTION
1++++ E,UITY - LIABILITIES
,,>>>",,CCC (apital G +eserves
,9>>>",9CCC )ong %erm G Deferred )iabilities
,<>>>",<CCC 1hort term )iabilities
,=>>>",=CCC (urrent )iabilities
.++++ ASSETS
6,>>>"6,CCC %angible 2i&ed Assets
69>>>"69CCC )ong %erm Investments
6<>>>"6<CCC )ong %erm )oans G Advances
6=>>>"6=CCC (urrent Assets
/++++ RE0ENUE
<,>>>"<,CCC %elephone %raffic +evenue
<6>>>"<6CCC %elegraph %raffic +evenue
<9>>>"<9CCC %ele& %raffic +evenue
<D>>>"<DCCC Miscellaneous +evenue
<C>>>"<CCCC 8ther Income
1++++ E2PENSES
=,>>>"=,CCC 1taff 1alaries G Alloances
=6>>>"=6CCC 1taff /&penses
=9>>>"=9CCC Maintenance G 'etty. ;or!s
=<>>>"=<CCC 8ffice (ontingencies
==>>>"==CCC 8ther operating /&penses
=B>>>"=BCCC @eneral 8verheads
=A>>>"=ACCC Depreciation
=D>>>"=DCCC 2inancial G 8ther (harges
A
CHAPTER .
REI0IE3 OF THE ORGANI4ATION
HISTORY OF PTCL
I"tr!d5ti!"
It is considered appropriated no that the history of 'a!istan %elecommunication
is compiled$ from the pre"independence period starting from ,D=9 up 6>>9. It should end
up the very brief overvie of particular interest the =D"year period of 'a!istan
%elecommunication from ,C<A to 6>>9.
2rom the humble beginnings of 'osts and %elegraph Department in ,C<A and
establishment of 'a!istan %elephone and %elegraph Department in ,CB6$ to this very day$
ours is a story of commitment and vision.
'a!istan %elecommunication (orporation 3'%(4 set sails for its voyage of glory in
December ,CC>$ ta!ing over operations and functions from 'a!istan %elephone and
%elegraph Department under 'a!istan %elecommunication (orporation Act ,CC,. %his
coincided ith the @overnmentHs competitive policy$ encouraging private sector
participation and resulting in aard of licenses for cellular$ card"operated payphones$
paging and$ lately$ data communication services.
'ursuing a progressive policy$ the @overnment in ,CC,$ announced its plans to
privati#e '%($ and in ,CC< issued si& million vouchers e&changeable into B>> million
shares of the ould"be '%() in to separate placements. /ach had a par value of +s.,>
per share. %hese vouchers ere converted into '%() shares in mid",CCB.
In ,CC=$ 'a!istan %elecommunication 3+eorgani#ation4 8rdinance formed the
basis for '%() monopoly over basic telephony in the country. It also paved the ay for
the establishment of an independent regulatory regime. %he provisions of the 8rdinance
ere lent permanence in 8ctober ,CCB through 'a!istan %elecommunication
3+eorgani#ation4 Act. %he same year$ 'a!istan %elecommunication (ompany )imited
as formed and listed on all stoc! e&changes of 'a!istan. 1ince then$ '%() has been
D
or!ing vigorously to meet the dual challenge of %elecom development and socio"
economic uplift of the country. %his is characteri#ed by a clearer appreciation of ongoing
telecom scenario herein convergence of technologies continuously changes the shape of
the sector. A measure of this understanding is progressive measures such as establishment
of the companyHs mobile and Internet subsidiaries in ,CCD.
As telecommunication monopolies head toards an imminent end$ services and
infrastructure providers are set to face even bigger challenges. 'a!istan also entered post"
monopoly era ith deregulation of the sector in 7anuary 6>>9. 8n the @overnment level$
a comprehensive liberali#ation policy for telecom sector is in the offing.
'%() is in full aareness of the same$ and future policies feature a strong
conviction of healthy competition. %he (ompany is in process of enhancing
organi#ational and business proficiency through vertical integration and hori#ontal
diversification. At the same time$ cross"national onerships$ operations and partnerships
are being evaluated ith a vie to developing and diversifying the business.
In this overvie$ it is proposed to highlight mainly the groth technology$ sector
structure$ organi#ation$ the lessons learnt and future trends.
P6a*e* !7 de8e9!#me"t::
%he compilation of the history has folloed a very logical plan and divisions and
chronology and ma-or organi#ational changes in %elecommunication entity. It also covers
the period of @overnment of 'a!istan 3@8'4 five years plan including$ the ma-or pats of
the middle and the eight 3,CC9 up to ,CCD4 plan progressively. In addition it also covers a
period of an evolving restructuring of the telecommunication sector structure and
organi#ation$ starting from a combine 'ost and %elegraph 3' and %4 department at
independence to a %elegraph and %elephone 3% and %4 in ,CB6 and a 'a!istan
%elecommunication (orporation 3'%(4 in ,CC>. %elecommunication Act ,CCB brought
the ma-or reorgani#ation$ separating policy$ regulation and operation in the ministry of
communication$ 'a!istan %elephone Authority 3'%A4 and 'a!istan %elecommunication
(ompany )imited 3'%()4 respectively.
C
It also let to the area of liberali#ation and increasing the participation of the
private sector in telecommunication especially since ,CC> ith the cellular$ card pay
phones$ data and paging services.
%he period also covers great advances in technology leading to the digital
revolution and open ire to coa&ial to optical fiber transaction. %he international services
develop in this period from the unreali#able short" vie radio to the high quality service
by sub marine cable and satellite radio. In this half century$ the 'a!istan
%elecommunication sector faced many challenges to set up a viable operational entity$
production units and support systems leading to the establishment of an adequate national
infrastructure on hich the !noledge and the informational super structure can be built.
T6e Te9e!mm5"iati!" Set!r 1;/<:.++;
At independence ,C<A$ the 'a!istan %elecommunication 1ector as organi#ed as
a combined ' and % 3'ost and %elegraph4 Department as it as in India before partition.
In 1eptember ,CB=$ the minister of railays and communication decided that a detail
e&amination be made of the or!ing of the 'a!istan 'ost and %elegraph department for
bringing about improvement in the efficiency of both the branches$ the 'ostal and
%elegraph 1ervices. %here as a reali#ation that the nature and needs of both the services
ould best be served by bifurcation$ hich as supported by the 8rgani#ation and
Management 38 and M4 ing of the presidentEs secretariat.
%he cabinet approved this division and a ma-or step as ta!en in ,CB6 to create
the 'a!istan %elephone and %elegraph 3% and %4 department. :oever the status of an
attached department continued and did not provide the administrative and fiscal
autonomy require for it to function efficiently.
%he ;orld Ban! felt reorgani#ation necessarily in ,CBD hile considering a
request for an in ,CAA and for that purpose appointed consultants for a study. %his as
also folloed in ,CBC by a revie and a report to the (hief Martial )a Administrator in
,CA9$ the cabinet approved the setting up a board of administrate and control the
%elephone and %elegraph 3% and %4. After prolonged discussion beteen the government
and ;orld Ban! ,CA9 to ,CAC$ a presidential order as issued on 9>
th
may ,CAC 3ithout
,>
changing the nature of the %elephone and %elegraph 3% and %4 as an attached department4
hich give the Director @eneral %elephone and %elegraph 3D@ % and %4 enhanced
administrative and fiscal poers and appointed a full time financial advisor. %he ne
agreement came into force on ,
st
7uly ,CAC.
Although there are some improvements$ but ith the greater demands on
%elephone and %elegraph 3% and %4 for telephone and improvements in services$ it as
felt that %elecommunication sector as not meeting the needs of the economy. %he ;orld
Ban! also held this vie. As a result in after revies$ the government decided to convert
the %elephone and %elegraph 3% and %4 and into in autonomous corporation that as
created as 'a!istan %elecommunication (orporation 3'%(4 by an ordinance on ,=
th
December ,CC>. %he establishment of the corporation as in intermediate step in
governmentEs strategy$ hich as to restructure the sector"facilitating private sector
participating to meet the phenomenal groth$ hich could not be supported in finance by
government itself. 2or this purpose$ government obtained the services of a consortium led
by Bears 1treams United 1tates of America 3U1A4 for the study and recommendation$
hich result in the promulgation of the %elecommunication ordinance of 7uly ,CC=
separating the policy$ regulations and operations in the sector. ;hile policy as reserved
for the government$ the regulation of the sector as entrusted to the 'a!istan
%elecommunication Authority 3'%A4. A frequency Allocation Board 32AB4 as created
for the management of the +adio frequency spectrum and for governmentEs
%elecommunication services$ *ational %elecommunication (orporation 3*%(4 as
created. %he 'a!istan %elecommunication 3'%(4 as converted to the 'a!istan
%elecommunication (ompany limited 3'%()4 on december9,$ ,CC=.
In 8ctober ,CCB$ national assembly enactive the %elecommunication
reorgani#ation act replacing the ordinances. Although not perfect$ the %elecommunication
Act ,CCB provides a reasonable frameor! for the sector structure and organi#ation. It
as only after the conversion of %elephone and %elegraph 3% and %4 department into a
corporation in December ,CC> hen serious ere made to ipe out the pending demands
and to provide the %elephones to applicant in reasonable time. In collaboration ith the
private sector through Build )ease %ransfer 3B)%4 scheme$ 9==$CD, lines in ,CC9 and
,,
<6C$>69 in ,CC< increase the capacity of the telephone e&changes in 6>><. %he capacity
had e&ceeded <.= million lines$ in increase of over 9.= million since ,CC,.
2or long distance telephone services$ capacity of circuits as increased in ,C=>Es
by reconstruction of open Iire lines and installation of a large number of 9 and ,6
channel carrier systems. (arrier channel mileage increased from D=>> in ,C<D to 6>B$DA9
in ,CB6. %o further increase circuit capacity$ coa&ial cable systems ere installed in
,CB>Es and in early ,CA>Es radio relay systems supplemented these in ,CA> and ,CD>$ on
both main and subsidiary roots these systems enabled introduction of point "to"point
subscriber trun! dialing 31%D4 in ,CB6 and *ation ide dialing 3*;D4 in ,CAB. By
,CD,$ the telephone subscriber of fifty cities had been provided ith *;D facility. In
,CC> the *;D stations had increased to ,BD and *;D channels to ,>$<DA. In 6>>B the
*;D stations has increased to 6$6=6.
Net=!r> E$#a"*i!" a"d Ser8ie Im#r!8eme"t
'%() maintained steady groth during the year in its netor! capacity and
customer base. Access )ine Installed 3A)I4 and Access )ines in 1ervice 3A)I14 stand at
D.99 million and =.D< million respectively. %his includes >.=, million customers served
through the ;)) netor!.
/&pansion of sitching and transmission netor!s across the country made it
possible to connect ,DC ne tons on *;D. /nhancement of the Internet 1ervice as
achieved by the addition of ,D> ne stations to the nearest 'oint of 'resence 3'8'4 thus
enabling customers to avail internet service via a local call.
Introduction of to *e&t @eneration *etor! 3*@*4 1oft sitches at Islamabad
and Karachi along ith 6> Media @ateays in other cities spea!s of '%()Es commitment
to serve its customers ith leading edge technology. As %ele& and %elegraph services
became obsolete folloing the adoption of fa&$ e"mail and internet technologies$ they
ere ceased during the year.
,6
%o augment netor! reliability$ the (ompany has invested in 'reventive
Maintenance programs relation to 8utside 'lant 381'4 of identified cabinet areas and
Multi"storey buildings.
(ompany Board approved a ide array of ne pro-ects during the year including
the e&pansion of 6.=@B D;DM system by < lambdas and e&pansion of ,>@B D;DM
system. In addition => 2iber 8ptic )in!s ere upgraded to 1%M"< and 1%M",B. 9$6>>
KM 2iber 8ptic (able as laid on subsidiary rotes during the year and 6>> more cities
shall be connected on 2iber 8ptic (able during 6>>B">A. '%() also launched an 8ptical
2iber Access *etor! 382A*4 pro-ect hich provides =<6$>>> lines in ,9 ma-or cities
for hich 6$9<> KM 2iber 8ptic (able as laid in the AccessF7unction netor!. %his
pro-ect also provides ,>>$ >> AD1) ports for Broadband 1ervices to (orporate
(ustomers.
%he transport additional traffic on trun! routes for interconnection ith Mobile$
)ong Distance International 3)DI4 and )ocal )oop 8perators$ capacities of D :(%/s
ere increased and = Universal Media @ateays ere commissioned. /&isting digital
sitch interfaces ere e&panded by B$,6C /Is and 6BB$>>> ne digital lines added to the
netor! at =B> sites during the year. 1ervices to remote areas ere improved ith the
commissioning of 9>9 Digital +adio 1ystems$ %he capacity of the fi&ed Intelligent
*etor! 3I*4 platform as also enhanced to cater for 6, million prepaid cards.
Aggressive rollout of the ;)) netor! is underay and ,$,9< base stations ere
commissioned to cover A6> ne cities$ tons and numerous villages. 2olloing the
installation of 6.>9 million lines during the year '%() no has the largest ;)) netor!
in the country. In addition to several value added services li!e Intelligent 'ayphone$ 1M1$
(all %ransferF2orardingFaiting$ 2a&$ (onference call etc$ the ;)) netor! can also
provide high speed internet services.
%he 'a!istan Internet /&change 3'I/4 netor! has undergone a ma-or e&pansion
during the last year ith an increase in the number of 'o's from C to 9< and the
introduction of disaster recovery nodes. 'I/ is no more resilient and is able to offer
enhanced Quality of 1ervice to its customers. International bandidth sold on 'I/ has
,9
increased from69> MB in August 6>>< to over 6$,>> MB in August 6>>B. In addition 'I/
also offers transport for ?oI' migration strategy.

BACKGROUND OF PTCL
2ive years into a ne century$ the telecom sector of the orld finds itself at cross
roads$ after changing it self almost beyond recognition over the last tenty year.
'rivati#ation and competition is the order of the day$ ith the ma-ority of countries
having adopted these policies to advance their telecom sector. %he results have been
impressive. the industry has gron at in unprecedented pace.
Although there has been phenomenal groth in 'a!istan$ especially in cellular
mobile communication and in the Internet. Jet the tele"density remains alays stagnant.
%he telecom sector of 'a!istan has also entered into a ne era. %he monopoly of
'%() is no over and the sector is no moving toards liberali#ation. ;hile
liberali#ation and competition synonymous$ the future scenario also poses some
challenges to the mar!et dominance of '%(). %he (ompany is ready. to face this
challenge and maintain its dominating position$ hile guarding its revenue streams in the
face of forth coming competition.
Although the sector ill embrace full liberali#ation in the near future$ '%() has
already e&perience healthy competition$ even before the announcement of the de"
regulation policy. the mobile telecom operators$ data netor! operators$ internet service
providers$ card payphones operation etc have been operating for quite some time no and
'%() has been in competition for a long time. 2or the ne challenges that is to say an
international$ national and local fi&ed line communication. '%() has already geared up
as in the process of appropriate corporate restructuring$ tariff$ re"balancing and
developing cost effective solutions. In addition$ it has also been continuously upgrading
infrastructure$ ta!ing more responsive customer care approaches and ta!ing initiatives to
ards$
Introduction of ne services and technologies$ li!e ;ireless )ocal )oop 3;))4$
*e @eneration *etor! 3*@*4 and 8ptical 2iber Access *etor! 382A*4. ;e
,<
understand the need to prepare our selves for the forth Icoming competition and reali#e
the importance of mar!eting and customer care. +etention of customers$ especially the
corporate customers$ ill remain the focus of our attention. ;hile the retaining the
present customers$ e have to compete for the ne customers as ell$ in order to broaden
'%()Es customers base.
%he company is therefore vieing the forth"coming competition as an opportunity
rather than a threat. ;e believe that the competition ould also bring along ith it$
greater level of efficiency in our system and procedure. %his ill come forth ith our
dedication$ commitment and all out efforts to ining customer confidence and altimetry
enhancing the shareholderEs value.
Hi*t!ria9 Ba>?r!5"d
1;/< 'ost and %elegraph 3' and %4 department as established.
1;@. 'a!istan %elegraph and %elephone department as established.
1;;+:;1 'a!istan %elecom (orporation 3'%(4 as established.
Access )ine in 1ervice 3A)I145 D=>$>>>$
;aiting list5 C>>$>>> /&pansion 'rogram of C>>$>>> lines initiated
3=>>$>>> lines by private sector of 'a!istan <>>$>>> lines
'%(F@8' 8n resources4.
1;;1 About = K of 'a!istan %elecommunication (orporation 3'%(4
assets transferred to 'a!istan %elecommunication 3'%A4$
2requency Allocation Board 32AB4 and *ational
%elecommunication (orporation 3*%(4.
1;;@ '%() 2ormed listed on all 1toc! /&changes of 'a!istan
1;;A Mobile and Internet subsidiaries established
.+++ %elecom 'olicy 2inali#ed
.++B %elecom De"regulation 'olicy Announced
PRI0ATI4ATION OF PTCL
'a!istan %elecommunication (orporation as established in December ,CC> to
ta!e over the functions of the 'a!istan %elephone and %elegraph department. Its
operation as govern by the 'a!istan %elecommunication (orporation 3'%(4 Act ,CC,
in ,CC, @overnment of 'a!istan 3@8'4 announced its intent to privati#e '%( and
,=
appointed a financial advisory team led by Bear 1treams and (oopers and )ybrand based
on hose advice the @overnment of 'a!istan 3@8'4 decided to sell the 6B= sta!e share
capital$ ith management rights of '%( by converting into a limited company under the
provisions of company ordinance ,CD<.
)ater on$ @overnment of 'a!istan 3@8'4 decided to sell ,,.DK of its share$ in the
shape vouchers$ on 1toc! Mar!et through domestic and international offering. %he sale of
6BK sta!e to strategic investor remains on the agenda. In August ,CC< @overnment of
'a!istan 3@8'4 issued ,$>>>$>>> 3one million4 '%( vouchers e&changeable into ,>>
million '%() shares 3ith a nominal value of +s.,>Fshare4 in a further =$>>>$>>> 3five
million4 similar vouchers as issued in 1eptember ,CC< to international investors. '%(
vouchers contributed to the e&chequer about U1L C>> million 3UK placement4 and +s.9
million domestic issues. %he price of the vouchers ere listed and traded on the stoc!
e&changes. %he price of the vouchers in the first and the second issue as +s.9>>> and
+s. ==>> respectively. @overnment of 'a!istan 3@8'4 also issued e&changeable notes
orth U1L ,=> million to international investors in 2ebruary ,CCA through *umura
international$ UB1 and global securities. %hese notes are e&changeable into fully paid
MAnN ordinary shares of '%() about 9.9K of total issued share capital. If the notes are
converted into shares it ill amount to total ,=.>BK of @overnment of 'a!istan 3@8'4
equity divestiture. In August ,CCA a deal of securiti#ation of '%() foreign receivable has
been successfully done hich fetched U1L 6=> million to @overnment of 'a!istan 3@8'4
and equivalent rupees to '%(). %he concept of securiti#ation of '%() future receivables
from ma-or operations has been opportunity of cheapest possible loan to '%().
In ,CC=$ @overnment of 'a!istan 3@8'4 'rivati#ation (ommission appointed a
ne financial advisor to implement the strategic sale. Morgan @reen 2ell 3UK4$ (ooper
and )ybrand$ Denton :all$ Muslim (ommercial Ban!$ Deutsche Ban! A@$ Abacus
(onsulting and +i#vi$ Isa led the team as member. %his ne advisory team instantiated
or! in 1eptember ,CC= and step ta!en on their recommendation are summari#ed in
anne&", the ne government dispensed the services of the Deutche Morgen @reen 2ell
and in 3,CCD4 appointed @oldman 1achs International 3@1I4 one of the most reputed
financial advisors to render advisory services of '%()
,B
MF1 @oldman 1achs financial advisor for privati#ation of '%() have started the
or! of due diligence. %he company established a data room at '%() headquarter
here complete information pertaining to '%() is available to facilitate due diligence
the proposed policy statement from Ministry of 1cience and %echnology 3M81 and %4.
%his is ready and can be issued once approved by the government on legal and regulatory
matter ma-or initiatives have been ta!en$ 'a!istan %elecommunication Authority
3'%A4 has granted mobile license to 'a!istan %elecom Mobile )imited 3'%M)4 and also
accepted the @oldman 1achs International 3@1I4 proposed regulations both on incensing
and tariff. 2inal details on price control are to be agreed. %ariff rationali#ation ill be
completed in four years as agreed. @oldman 1achs International 3@1I4 is currently
or!ing on staff restructuring policy and information memorandum. 8nce policy related
issues are settled$ sub-ects to @overnment of 'a!istan 3@8'4 approval$ road shos$
could be start. %he present government has initiated the de"regulation policy and ants to
divest its 6BK share ith the management control. %ell no ,< big international reputed
telecom companies have shoed e&pression of interest in '%().
PRI0ATI4ATION COMMISSION
Tra"*ati!" #r!7i9e::
'a!istan %elecommunication (ompany )td. 3M'%()N4 is ma-ority oned by the
@overnment of 'a!istan 3@8'4 controlling DDK shareholding in the company ith the
remaining ,6K shares listed on the stoc! e&changes. %he @overnment of 'a!istan @8'4
is offering up to 6BK of the issued share capital of the company to strategic investors. A
teaser document for prospective investors is provided on the ebsite.
Re?59arity Re?ime::
'olicy$ regulation and operation functions stand totally separated for the
telecommunication industry in 'a!istan. 'olicy formulation rests ith the Ministry of
1cience and %echnology 3M81 and %4. %he '%A$ established in ,CCB as an independent
and autonomous body$ regulates the telecommunications sector. Its functions include
policy advice$ sector monitoring$ licensing and tariff regulation$ arbitration of
interconnection and other disputes$ and consumer complaints handling.
Sa9e* Pr!e**::
,A
%he 'rivati#ation (ommission has appointed a financial advisory consortium co"
led by @oldman 1achs International and 7'Morgan for pr privati#ation of '%(). *ine 3C4
pre"qualified parties are conducting due diligence.
Dei*i!"::
%he (abinet (ommittee on 'rivati#ation 3((o'4 has accepted the /tisalatHs bid of
L6.B billion for 6B per cent sta!es in the 'a!istan %elecommunication (ompany
)imited 3'%()4. /mirates %elecommunications (orporation 3/tisalat4 offered
L,.CBper share for '%()$ even better than the combine offer of the other to
bidders. 1ingapore %elecommunications )imited 31ing %el4 offered -ust L>.DD per
share 3+s =6.=<Fshare4 and (hina Mobile submitted L,.>B99 per share 3+s
B9.<DFshare4 for the (ompany$ hich earned +s 6C.6 billion net profit in 6>><.
%he reserve price of the company approved by the ((o' as -ust +s B6 per share.
PRODUCTS LINES AND SER0ICES OF PTCL
A product line is a group of products that are closely related because they satisfy a
class of needs are used together are sold to the same customer group are distributed
through the same type of outlets or fall ithin a given price range. '%() has ma-or
product lines containing various %elecommunication services. ;ithin each product line is
the product item$ a specific product as noted by a unique brand$ si#e or price. %he third
ay to loo! a product is by the product Mi& or the number of product lines offered by a
company. '%() hoever has many lines consisting of folloing items and services.
Ne= Te9e#6!"e C!""eti!" CNTCD: *e %elephone (onnection provides you a lin!
ith '%() netor! for ma!ing local$ national$ and international calls.
ISDN BRIEPRI: CI"te?rated *er8ie* di?ita9 "et=!r>F Ba*i *er8ie
I"ter7aeEPrimary rate I"ter7aeD It is a broad band service suitable for house holds and
smallFmedium si#ed organi#ations$ offering faster$ cleaner voice$ fa&$ data communication
and internet on a single phone line. I1D* B+I provides to B<!bps user channels plus
one,B!bps signaling channel. 2or larger applications and 'ABOsF '%() also provides
I1D* primary rate interface 3'+Is4$ hich give thirty B<!bps user channels and one
,D
B<!bps signaling channel. %he service also carries a cost advantage$ is installation charges
and monthly line rent are equivalent to tenty '1%* lines.
M!Gi9e P6!"e *er8ie: '%() provides also mobile services. '%M) provides the U 2one
netor! in this field. U fone is the e&ample of '%()$ mobile service hich provided to
the customers$ and going very ell in this field.
Pre:Paid Ca99i"? ard: %he launch of pre"paid calling card service in 8ctober 6>>>
resulted an overhelming customerEs response$ yielding sales revenues of 3+s. A.< billion
up till 7une 6>>D.4.%his necessitate the e&pansion of e&isting I* 3Intelligent *etor!4
system$ and the installation of a second I* plate form facility ith edit futures$ such
as home country direct in telephone bill payment. %he system is e&pected to be
commissioned in 8ctober 6>>9.%his calling card for +s. ,>>F"$ +s. 6=>F"$ +s.=>>F"$
+s.,>>>F" and +s. 6>>>F"easily available through out the country and easy to use from any
'%() Digital phone and fast and easy nation ide and International e&cess ithout any
line rent and no phone bill.
T!99 Free Ser8ie C+A++D: %oll 2ree 1ervice is another specific solution for corporate
customers$ running call centers for greater customerEs convenience. Businesses and
entrepreneurs are benefiting from this service ith three different discount pac!ages and
the services have generated +s. A>.6C million in the year 6>>A"6>>D.
UAN::U"i8er*a9 Ae** N5mGer: UA* is a popular solution for corporate entities$
providing one"number access to customers in different cities. UA* has generated an
overhelming response over the years giving the satisfaction an of better customer care.
UIN::U"i8er*a9 I"ter"et N5mGer: It is an I1' specific dial up access number
accessibility by dialing ,9,. It connects Internet users and is charged as a local call$
irrespective of duration and distance.
Premi5m Rate Ser8ie C+;++D: It allos a service provider to provide useful information
to the callers. *ine private operators have made agreements ith '%()$ generating
revenue of +s. ,=C million in the year 6>>A"6>>D.
,C
0PN:: C0irt5a9 Pri8ate N5mGerD: It is best suited to corporations and businesses ith
multi"location officesFbranches$ because it allos them to have private netor! using
'%() lines$ ithout having to install dedicated netor! resources. It features 6=K
tariff discount along ith facilities$ such as abbreviated dialing$ private numbering plan
originFtime dependent routing etc.
D!me*ti Lea*ed Li"e*: A 6>B"code digital cross connect 3DOO4 netor! having a data
speed range of B< !bps to 6mbpsi no available in all ma-or cities of the country. '%()
offers leased lines connectivity for point to point inter"office connectivity ith the same
city or beteen to offices in different cities. A monthly 3DOO4 charge depends on data
rates hile media charges are distance based'
I"ter"ati!"a9 Lea*ed Cir5it*: PTCL: offers a range of options to meet the
international connectivity requirements of its customers on satellite and submarine cable.
%he product range includes5
(lear half circuit International private leased circuit 3I')(4 via satellite.
(lear half circuit International private leased circuit 3I')(4 via sub marine
cable.
2ull circuit premium Internet bac!bone connectivity via sub marine cable.
%ariffs are dependent upon the customerEs category and media used.
C!:L!ati!": '%() providing co"location facilities in its e&changesFpremises to
licensed service providers and 8 and M partners. %hree co"location centers have been
established at Islamabad$ )ahore and Karachi in the first phase. %hese purpose built
facilities offer %elco grade space ith uninterrupted poer supply 3U'14$ air"
conditioning$ fire protection and 6< hours manned security. (ustomers can either co"
located in cabins or in open space available at these locations. Access to bac! end
infrastructure is ready available.
L!a9 Ca99 O77er*: '%() for greater customer facility has doubled the duration of local
calls from five minutes to ten minutes beteen the hour 669> to 6<>> and >B>> to >A>>
hours. Besides that local calls made from midnight till >B>> hours have also been made
free.

6>
F5t5re Ser8ie*:
'%() is planning to launch the folloing I* based services in the near future5
:ome (ountry Direct 3:(D4
're 'ayment %elephony 3''%4
%elephone Bill 'ayment 3%B'4
Universal 'ersonal *umber 3U'*4
Universal 'ersonal %elephony 3U'%4
PARTNERSHIP AND COLLABORATION OF PTCL
In order to diversify its service$ e&pand its business and encourage private sector
participation$ '%() is continuing to e&pand collaborative business agreements ith other
companiesFservice providersFoperators. %hese initiatives include prepaid calling cards
3''((4$ card payphone$ ?olp pro-ect Asymmetric Digital subscriber line 3AD1)4$
;ireless payphone service 3;'14$ global mobile personal communication system
3@M'(14$ premium rate service 3'+14$ 'a!istan /ducation +esearch *etor! 33'/+*4
and the outsourcing of '%() customer service centers. '%() has also outsourced B9
customersE service centers to the private sector$ hich has led to an increase in its
revenue. During the past one year$ the total value of '%() private sector partnership has
gone up by more than 6>>K from -ust under +s. B billion to over +s. ,D billion. %his
indicates the rapid e&pansion in the telecom sector in the country post"deregulation.
PTCL)* SUBSIDIARIES
Pa> Te9e!m M!Gi9e Limited CPMTLD:: '%() too! a strategic decision to enter into the
cellular business in a big ay ith the launching of its fully oned subsidiary '%M) 3U
fone4. '%M) is holly oned subsidiary of '%() established to operate cellular
telephony under the brand name of U fone. Ufone successfully maintains its mar!et share
of6,K by increasing its subs to ,D., billion. During the year$ Ufone successfully
completed the launching of sites under 'hase ? in e&isting as ell as ne cities and
tons by investing more than U1L =6= million. %his has increased the asset base of
Ufone rupees 99.= billion to ==.C billion. %o further enhance the subscriber base and
strategically position the company in the groing telecom mar!et$ Ufone has finali#ed a
6,
netor! e&pansion for 'hase ?I contact amounting to about U1L ,6B million. Ufone
currently$ has netor! coverage in more than 9A=B locations throughout the country.
Ufone operational performance has been very encouraging despite stiff competition in
'a!istan telecom mar!et hich has led to reduction of prices to bare minimum level.
Ufone managed to improve its revenue and operating profit by 9=K and <AK
respectively$ as compared to the last year through aggressive policies and e&ercising strict
control over e&penses.

Pa>Net Limited: 'a!*et as incorporate in year 6>>> for providing internet related
services in the country is being ound up. :oever$ '%() has developed its on voice$
data and video infrastructure and services$ 'a!netEs operations have been closed and
liquidator appointed for completing the formalities involving the company closure. All
customers$ assets$ liabilities and capital stand transferred to '%() in accordance ith the
special resolution passed in the @eneral Meetings. %he accounts of 'a!net have been
audited and a final report is required to be submitted to the share holder 3'%()4 in the
A@M 3to be held in 8ctober 6>>D4 and on ards to 1/('. %he company ill formally
indup after filling the report ith 1/('.
Te9e!m I"d5*trie* !7 Pa>i*ta" CP8tD Ltd' CTIPD: %elephone Industries of 'a!istan is
primarily manufacturing units involved in the manufacturing of e&changes$ telephone
instruments and other %elecom equipment. It is a -oint venture of the '%() and MF1.
1emenEs having shares of A>K and 9>K respectively.
%here are several other products are manufactured li!e energy meters$ fire alarms$
cross connect cabinets$ containers$ drop ires etc.
%he company continued to perform poorly during the period up to April ,6$ 6>>B
hen '%() ithdra its investment from the company. During the period from 7uly >,$
6>>= to April ,6$ 6>>B$ the company suffered a loss of +s ,,< million on revenues of +s
,$,<6 million. '%() management on its part has completed all formalities pertaining to
disinvestment of %I' and transfer of shares to Ministry of I% and %$ @8?/+*M/*% 82
'AKI1%A*.
66
Carrier Te9e#6!"e I"d5*trie* CP8tD Ltd' CCTID :
(arrier %elephone Industries primarily a manufacturer of %elecom %ransmission
/quipment. %he company as privati#ed in *ovember 6>>= as part of the '%()
privati#ation commitment. '%()Es equity investment of +s D million as sold for +s =>>
million to 1iemens A@. %he privati#ation commitment has not yet released the proceeds
of this sale to '%(). %he folloing ma-or equipment as produced by the (%I.
1+A) Digital microave radios.
1D: 1ystems.
(omputer ith peripherals.
+DBO 1ystem.
In order to meet the emerging requirements of I% and telecommunication the
products li!e access netor! and ;)) ould form part of business plan of the '%().

PTCL C5*t!mer Se?me"tati!"'
'%() customers are segmented in to Ma-or categories as under.
I' B5*i"e** C5*t!mer*'
I' Multinational corporations.
II. 'ublic 1ector corporations.
III' 'rivate sector companies.
I0' 1mall and medium enterprises.
II' Re*ide"tia9 C5*t!mer*'
I' '(8s users.
II. :igh Income class.
III' Middle and )oer Middle Income class.
CORPORATE SOCIAL RESPONSIBILITY
'%() continued to contribute to the social development of the community. '%()
supports a variety of caused primarily focused in the area of sports$ environment and
cultural activities in the country. In the aftermath of last yearEs earthqua!e$ '%()
contributed handsomely to the @overnment of 'a!istan and the affected people.
69
F5t5re Pr!*#et*
%he ne management /tisalat International 'a!istan 3/I'4 is revieing options to
re"structure the organi#ation$ improve customer care$ increase revenue$ enhance cost
control and bring about a paradigm shift in the mind set of the mind set of the employees
to deliver on e&pectations of all the sta!eholders. %he ne management is also planning
urgent measures toards revenue assurance$ timely collection of overdue receivables and
the effective utili#ation of '%() assets and strengths. A ne /nterprise +esource
'lanning 1ystem along ith a ne Billing and (ustomer (are 1ystem is also being
implemented. Jour Board fully supports all the initiatives to improve the productivity and
profitability of the (ompany.
Pa>i*ta" Te9e!mm5"iati!" !m#a"y Net=!r>
'%() netor! consists of CC percent digital sitching system e&changes$ 8ptical
2iber (able Bac!hoe$ subsidiaries routes$ long distance media$ digital radio systems$
satellite communications and alternate arrangements. It has international @ateay
e&changes at Karachi and Islamabad. %he '%() is provider of infrastructure for
connectivity for Internet services 'roviders 3I1'Es4$ data netor! operators$ softare
e&porters$ educational institutions$ universities$ corporate customers and other users. Its
tariffs ere reduced by 6= percent on international calls during 6>>,">6 and are e&pected
to be reduced further in 6>>6">9. %ariff has also been reduced by B> percent on
international I' bandidth$ ,> to BD percent on loer than one MB$ and A> percent on
domestic lease circuits. 2or promotion of Information %echnology$ ,$9=> citiesFtonsF
villages have been provided ith Internet facility$ up to March 6>>9$ compared to D=>
citiesFtonsFvillages in 7une 6>>6 shoing an increase of =D.D percent. 'romotional
traffic has been introduced for I1's$ 1oftare e&porters and educational
institutionsFuniversities or!ing in the country. During 6>>>I>,$ the '%() has launched
its domestic and International 're"'aid (alling (ard 1ervice 3Intelligent *etor!4
in the country. 1ince its commissioning$ the intelligent netor! system at Islamabad$
)ahore and Karachi has met ith tremendous success. 1o far C.A9 million cards have
been floated in the mar!et. 'a!istan %elecommunication netor! is e&panding each year$
thus providing telephone access to rural and urban communities in record time. %otal
telephone lines installed by March 6>>9 ere <.B million as against 9.B million up to 7une
6>>6 last year$ shoing an increase of one million telephone connections or 6A.D percent.
6<
A system ith a capacity of ,,>$>>> Mail Bo&es has been installed at ,> ma-or
cities li!e 2aisalabad$ @u-ranala$ :yderabad$ Islamabad$ Karachi$ )ahore$ Multan$
'eshaar$ Quetta and 1ial!ot. %he Mobile 'hone 1ervice 3Ufone4 has been launched in
B> citiesF tons and highays. Its customer base is <6=$CAD$ hich is e&pected to
increase further in future. 'a!net$ an Internet 1ervice provider 3I1'4$ is a subsidiary of the
'%(). %he '%() has installed Internet /&changes 3'I/4 at +aalpindi$ )ahore and
Karachi$ comprising of high"end routers$ multi"services sitches$ firealls and pro&y
services etc.
PTCL Diret!r*) Re#!rt .++A
%he directors of '%() are pleased to present the Annual report and the audited
financial statement of the company for the year ended 7une 9>$ 6>>D. %he financial year 6
>>A">D as a challenging year for '%() I the largest integrated telecom service provider
in 'a!istan. :oever$ during the year ma-or initiatives have been underta!en to
accelerate transformation of '%() from legacy public sector organi#ation to a customer
focused$ corporate enterprise competing in the de"regulated era. Along ith the basic
voice service$ '%() e&pand its Broadband internet offering to ,< cities across the
country$ made the dial up internet available across the entire country and commenced soft
launch of delivering over ,>> %elevision channels using internet protocol providing
digital quality phone$ broadband internet and I'%? services to its customers in )ahore$
Karachi and Islamabad$ thereby ta!ing '%() from a basic telephone company to a voice$
data and video provisioning enterprise.
Jet another landmar! achievement during the year as the successful
implementation and rightsi#ing through voluntary separation scheme 3?114.
Fi"a"ia9 Per7!rma"e
%o thrive in the highly competitive telecom mar!et and to meet the groing
challenges$ '%() has ta!en certain essential steps for organi#ational transformation li!e
introduction G implementation of ?oluntary 1eparation 1cheme 3?114$ /nterprise
+esource 'lanning 'ac!ages as ell as penetrating ne innovated services. :oever$ the
profitability of the (ompany for the year ended 7une 9>$ 6>>D suffered due to absorption
of a massive ?11 cost amounting to +s 69.C< billion.
6=
Due to this company sustained a loss +s. 6.D 6 billion 3)'1 +s. >.==4 against pervious
yearEs net profit of +s. ,=.B< billion 3/'1 +s. 9.>A4. %otal revenue for the financial year
6>>A">D stood at +s. B,.>C billion. :oever$ revenue streams from overseas calls$ value
added services and domestic long distance calls revealed improvement. Intense
penetration by mobile business and stiff mar!et competition affected subscriber base as
ell as traffic volumes hich ultimately posed negative impact on other revenue steams
during the year under revie.
Due to enhanced operational controls$ the (ompany managed to minimi#e its
operating costs to +s.<<.A billion as compared to +s. <B.B billion last year. %he huge
outflo of financial reserves in the shape of ?11 e&pense also affected the (ompanyEs
non"operational income but at the same time it helped the (ompany to reali#e certain
savings in the last quarter against salaries G alloances.
As compared to pr"ta& loss of +s.,<.< billion during the first half$ the (ompany
earned a pre"ta& profit of +s.C.C billion in the second half$ thus reducing the pre"ta& loss
to +s. <.= billion for the year.
Despite the severe competition in the %elecom mar!et to be forecasted$ the
(ompany management is confident that after successful e&ecution of ne initiative and
implementation of improved strategies$ the (ompany ill itness customer confidence
on '%() quality and lo cost services due to improvement in the operational efficiency
and eventually significant increase in revenue and shareholders value in the years to
come.
6B
P&0IST&- TE#EC"MM'-IC&TI"- C"MP&-1
#IMITIED
Com.arative 2alance Sheet 3445647648
9!ne :4, 3445 9!ne :4, 3447 9!ne :4, 3448
(,!.ees in tho!sand*
EQUITY AND LIABILITIES

SHARE CAPITAL AND RESER#ES
&!thori;ed share Ca.ital

<<,<44,444,444 =&= Class ordinary
shares of ,s$ <4 each
<<<,444,444 <<<,444,444 <<<,444,444
:,>444,444,444 =2= Class ordinary
shares of ,s$ <4 each
:,>44,444 :,>44,444 :,>44,444
$%&'&&&'&&& $%&'&&&'&&& $%&'&&&'&&&

Iss!ed, s!bscribed and .aid !. ca.ital <?4,444,444 <?4,444,444 <?4,444,444
Ins!rance ,eserve <,7@>,4@7 <,58:,47@ <,7@>,4@7
Ina..ro.riate Profit :4,?44,444 :4,?44,444 :4,?44,444
33,@8:,4?4 <8,7>7,:@? :4,>55,<:3
$&%'()%'(*( $&$'+,&'($+ $$('-$%'$)+
NON CURRENT LIABILITIES
#ong Term #oans and other borroAing
6 sec!red
<74,87: >,<44,>@> <4,:@8,3?4
#iabilities against assets s!bBect o
finance lease
6 6 3,3:<
Payable to PT& against license fee <,>:7,:33 <,><4,8?8 <,758,58<
Deferred Taation 6 @,@5>,8?3 ?,3:@,?7>
Em.loyee retirement benefits and
other obligations
<<,53@,>:? <@,:47,@:3 <3,:78,5:5
Deferred Government grant >?,444 6
#ong Term Sec!rity De.osit from
c!stomers 6 non interest bearing
<,@58,?>3 <,?87,84?
"ther long term liabilities 3,7??,8>5 3?,?<8,>@3 @,<:8,45:
$*'(,+'&-* %*',)$'*-% .%'(%,'-(%
CURRENT LIABILITIES
6A
C!rrent .ortio of
#ong term loans and other borroAing 6
sec!red
6 <,358,@@> <,@@4,4:4
#iabilities against assets s!bBects to
finance lease
6 3,3:< :,5:?
Payable to PT& against license fee 6 3?,@@4 35,>55
Em.loyee retirement benefits and
other obligations
6 <3,77@
Short term borroAings :,75:,:4: 3,?:5,7<4 :,57@,5:4
Trade and other .ayables <7,??7,4>3 37,>?<,37< 3@,@54,5@@
Interest and mark!. accr!ed <3,:3: 3:8,?>8 3<,@>4
Taation 3,73?,>8@ <83,3>3 3,74>,<?7
.&'-)%'%.- .-'-&('++$ .-'.(+'.-*
CONTINGENCIES AND
COMMITMENTS

$%-'-(&'&-- $+$'&%)'&.% $,-'&--')%&
NON CURRENT ASSESTS
Pro.erty, Plant and e/!i.ment 7?,>:7,784 >7,8<7,>33 <33,>:3,>37
Ca.ital Cork6in6Progress <:,<4@,:34 <8,54:,?8< <<,7<5,><:
&ssets S!bBect to finance lease 6 @,>8: >88
Intangible assets @,4@8,875 :,8>8,3@> :,7?@,5?7
#ong Term Investments 7,<<8,443 :,><7,:8: :,7:7,5:@
#ong term #oans <,853,857 <,<7@,<@4 :>@,>@:
$&-'&)$',(% $-%'($*'.-% $(-'%.,'&*-
CURRENT ASSEST
Stores and s.ares :,@:?,57> 87>,345 @,>?@,48?
Stock in Trade 6 374,@5@ <>4,88:
Trade Debts <7,853,4@> <<,?@:,@>@ <3,5<4,35<
#oans, &dvances, De.osits,
Pre.ayments and other receivables
?,77<,55@ ?,5?@,87: 7,:?8,35<
,eceivable from Government of
Pakistan for %ol!ntary Se.aration
Scheme (%SS*
6 6 3,<5@,473
Cash and bank 2alances 33,?>8,78? :?,3?8,:8? 3<,3@4,7@?
?4<58<77 ?5545@33 @88?<>7:
6D
$%-'-(&'&-- $,-'&--')%& $+$'&%)'&.%
6C
P&0IST&- TE#EC"MM'-IC&TI"- C"MP&-1
#IMITIED
Profit and #oss &cco!nt 3445647648
9!ne :4, 3445 9!ne :4, 3447 9!ne :4, 3448
(,!.ees in Tho!sand*
,even!e 3<,@:>,?8@ 8<,@45,74> 84,8:?,885
".erating Cost (<:,::?,:4>* (?>,38:,>8>* (54,@??,3@:*

".erating Profit 8,<4@,37? 33,<33,734 34,:84,5@:
%ol!ntary Se.aration Scheme 6 6 (3:,>:7,?8@*
-on6".erating income <,474,4>@ ?,@78,588 :,734,4>3
)inance Cost (@3<,5?4* (<,884,43>* 3,55<,:@7
+'%+*'&$+ -%')-$'.)+ -'(+,'(**
Share of (loss* D Profit of
&ssociate
8@5 @,:44
(#oss* D Profit before ta Provision
for taation
8,7?3,7<> 3?,733,33? 3,?43,755
Gro!. 6 8,>3<,35@ @58,3<4
&ssociate 6 33: 34@
,')%-')$+ ,'+-$'(,) (*,'&&*
(#oss* D Profit after taation :,3>4,4>< <5,844,7:8 3,4:@,754
(#oss* D Earnings .er share
(,!.ees*
<$<@ :$3> 4$@4
9>
9,
G9!Ga9 !""eti8ity
%he company commissioned 1M;"<$ the latest in submarine cable systems$ to
enhance reliability and availability of international connectivity. %his complements the
e&isting 1M;"9submarine cable and has increased netor! capacity by B<A$<66MIU
Km. in addition to carrying the ma-ority of international I' and ?oice traffic$ 1M;"<
provides restoration and diversity for 1M;"9. %his increased the equipped capacity of
1M;"9 from <.BB million MIU Km to =.9D million MIU Km to meet the demand of
8ther )icensed 8perators 38)84 and other customers for bandidth. %his capacity
enhancement puts the company in a better position to carry more voice and data traffic.
A global customer base and the entry of 8ther )icensed 8perators 38)84 have
resulted in an increase in traffic to and from 'a!istan. %o meet this ne demand more
than 6$=>> international circuits ere added to '%()Es netor! during the year.
H5ma" Re*!5re De8e9!#me"t
%he transformation from a legacy public sector organi#ation into a responsive and
competitive enterprise in the deregulated era could not have been possible ithout
implementing a forard loo!ing :uman (apital development and management strategy.
8ne of the most important ob-ectives of this ne strategy as to optimi#e the or!force
hich as implemented by offering the ?oluntary 1cheme 3?114 from '%() in
e&change for financial compensation. Around 6C$ 6C> employees opted to pursue other
opportunities after accepting terms of ?oluntary separation from '%(). %he ?11 mar!ed
the single largest most successful e&ercise in the history of 'a!istan.
%he company has implemented changes in organi#ation structure to ma!e it more
responsive to commercial imperatives and to increase internal efficiencies.
Rea9 E*tate
'%() ons a large number of real estates assets throughout the country. 8ut a of
total 9$6AB properties titles of 6$=DD have been transferred in the name of '%() from the
no defunct %elephone and %elegraph 3% and %4 department. %he transfer of 6,C
properties is under process. %he prime minister of 'a!istan has recently constituted a
committee to facilitate '%() in the transfer of titles of the remaining properties to '%().
96
C!r#!rate a"d Re?59at!ry A77air*
%he regulatory environment throughout the year remained very intense folloing
the many 'olicy Initiative of the 'a!istan %elecommunication Authority 3'%A4. %he
company continuous to evaluate all such changes in the regulatory frameor! to ensure a
level playing field and also challenged some of the directives issued by the '%A during
the year. %hey have strengthened its regulatory department to better manage regulatory
affairs$ license obligations and interconnections functions. In addition to the interconnect
agreement ith fi&ed sector licensees$ agreement ith si& (ellular Mobile 8perators
3(M84 ere also signed during the year folloing the '%AEs approval of the +eference
Interconnect 8ffer 3+I84.
%he '%A issued determinations on carrier pre"selection on payphones and on
bandidth tariffs hich ere set aside by the )ahore :igh (ourt after these ere
challenged by '%().
'%() signed settlement agreements ith *ational telecommunication corporation
3*%(4 and the special communication organi#ation 31(84 to resolve long outstanding
issues. %he company has applied to '/M+A for I'%? license$ after obtaining special
e&emption from the restriction of non"eligibility of companies ith foreign management.
Fi"a"ia9 Re#!rti"? Frame=!r>
%he company has compiled ith all the material requirements of the code of
corporate @overnance and the Directors are pleased to confirm the folloing5
%he financial statements$ prepared by the management of the company
present fairly its state of affairs$ the result of its operations$ its cash
flos and its changes in equity.
'roper boo!s of accounts of the company have been maintained.
Appropriate accounting policies have been consistently applied in the
preparation of financial statements and accounting estimates are based
on reasonable and prudent -udgment.
99
International accounting standards$ as applicable in 'a!istan$ have been
folloed in the preparation of financial statements and any departure
there from has been adequately disclosed.
%he system of internal controls in sound in design and has been
effectively implemented and monitored.
%here are no significant doubts about the companyEs ability to continue
as a going concern.
%here has been no material departure from the best practices of
corporate governance$ as detailed in the listed regulations.
%he Audit and 2inance committee has recommended the appointment of MFs A.2.
2ergusonG (o and MF1 2ord +hodes 1idat :aider G (o. 3/rnest G Joung4$ (harted
Accountants as -oint auditors of the company for the financial year ending 7une 9>$ 6>D.
Information regarding outstanding ta&es and levies is given in notes to the
accounts of the financial statements.
%he audited value of 'ension Assets as per audited accounts amounted to +s. <D.<
billion at 7une 9>$ 6>>D.
9<
CHAPTER B
O0ER0IE3 OF ORGANI4ATIONAL
STRUTURE OF PTCL
Or?a"iHati!"a9 *tr5t5re !7 PTCL
%he term organi#ation structure describes the organi#ations formal frameor! or
system of communication and authority. %he '%() converted from @overnment sector to
'ublic 1ector .e.f. ,=",6",CC>. %hus the organi#ation structure prior to ,=",6",CC> as
centrali#ed and decision ma!ing is highly centrali#ed in upper levels of Management. %he
Director @eneral as act being (hief /&ecutive of the Department and having fe
+egions -ust one in each province here act @eneral Manager or Director as +egional In
charge of the Department. %he human resource as also !ept in minimum level
comparatively no a days. /ach +egion had some field divisions scattered in far flung
Areas.
%he Divisional /ngineers ere performing their duties as Divisional In charge
ith some 1ub. Divisional 8fficers and 1upervisory staff. %he unity of command as
very simple and it as highly cleared here is the types and amount of authority and
responsibility that organi#ational members hold. %he Accountant @eneral '%G% Audit
)ahore as the 'rincipal Audit and Accounts office of the department. %he %elegraph
and %elephone department restructured and renamed 'a!istan %elecommunication
(orporation .e.f. ,=",6",CC>.
%he 'ost of Director @eneral as redesigned as (hairman '%(. *o the
comple&ity interred in the organi#ation structure resultantly more division of labor the
more vertical levels and more geographically dispersed the organi#ations units$ the more
hierarchy$ the more difficult it is to coordinate people and their activities. :oever since
,CC> or becoming corporation the %elecommunication is playing an increasingly
significant role as the most important infrastructure of modern economic and societies.
%he government of 'a!istan no holds more then B6K sta!e in the company and
nominates four 3><4 directors on the Board of Directors of the (ompany$ hile the
9=
/tisalat International 'a!istan 3/I'4 has 6BK holding in the (ompany and nominates five
3>=4 Directors on the Board of Directors. All the directors are non"e&ecutive directors.
%he 8rgani#ational chart of '%() :eadquarter is shon in 2ig B'1'
%he 8rgani#ational 1tructure of '%() shos that 'resident of '%() is the head
of all the 8rgani#ation and there is only one 1ecretary of the 8rgani#ation. %he /tisalat
(ompany has 6BK of 1hares therefore they can nominate five 3>=4 directors of the Board
of Directors. %op Management of the (ompany includes 1enior /&ecutive ?ice 'resident
and /&ecutive ?ice 'resident of the Departments.
B!ard !7 Diret!r* !7 PTCL
After the privati#ation of '%() the ne management holds the charge of the
(ompany and has formed a Board of Directors consisting upon ten members including a
(hairman and (hief /&ecutive 8fficer. %he '%() is to comply ith the code of
corporate @overnance 3code4 contained in the listing regulations of the Karachi$ )ahore
and Islamabad stoc! e&changes for the purpose of establishing a frameor! of good
governance$ hereby a listed company is managed in compliance ith the best practices
of the corporate governance.
%he (ompany has applied the principles contained in the code in the folloing
manner.

'ursuant to privati#ation of the (ompany$ the government of 'a!istan no
holds more then B6K sta!e in the company and nominates four 3><4 directors
on the Board of Directors of the (ompany$ hile the /tisalat International
'a!istan 3/I'4 has 6BK holding in the (ompany and nominates five 3>=4
Directors on the Board of Directors. All the directors are non"e&ecutive
directors. %he name of members of the Board of Directors as on 9>th 7une
6>>B is given in Appendi& MAN
%he directors of the company have confirmed that none of them is serving as a
Director in more then ten listed companies$ including this (ompany.
All the resident Directors of the (ompany are registered as ta&payers and
none of them has defaulted in payment of any loan to a (ompany$ being a
9B
member of a stoc! e&change$ has been declared as a defaulter by that stoc!
e&change.
All the vacancies occurring in the Board ere filled up by the Directors ithin
9> days thereof.
%he (ompany has prepared a M1tatement of /thics and Business 'racticesN$
hich has been approved by the Directors of the (ompany and is in the
process of being signed off by the Directors and designated employees.
Detai9* !7 Em#9!yee* i" PTCL HeadI5arter
8rgani#ational restructuring of '%() is being carried out for ma!ing the company
more responsive$ competitive and capable of facing emerging global and domestic
challenges. In areas of focus ould be mar!eting and customer care$ :uman resource
management and development$ emerging technologies etc. Appropriate changes have also
been brought about in :uman +esource Management such as completion of census and
establishment of :uman +esource Management information system. +ecruitment process
and system has been adequately revamped by adopting appropriate :uman +esource
practice. Decision support system$ thus established$ ill help generate desired
management reports. 'rofessional development of employees$ especially the middle
management is being ensured. %raining sources for employees have been redesigned. A
special emphasis is being paid on the inculcation of sense of responsibility and politeness
in the minds of '%() employees$ especially the lo Management and staff. %otal number
of employees as categori#ed belo is B,D<> as on 9>"="6>>D. %he Details of /mployees
charts of '%() are give in Appendi& %B&
De#artme"tati!" !7 PTCL
'%() is big organi#ations hich have several departments. %hese departments
are given belo. All these departments have a 1enior /&ecutive ?ice 'resident hich
controls these departments. *o the scope of these departmental units and the
comple&ity of the enterprise give rise of additional organi#ational units. %hese types
results mainly from such things as the nature and amount of or! to be done$ the degree
of speciali#ation or division of labor practiced$ and the people and the or!place
available for the or!.
9A
%his is speciali#ation or division of labor$ hich give birth to Departmentation$
hich again five births to span of control. '%()Es organi#ational chart is a full picture of
the division of labor. As e can see that the hole organi#ation is Mdepartmentali#edN
into seven ma-or activities. %hese are5
I. (orporate Affairs
II. 8peration
III. 2inance
I?. /state Management
?. :uman +esource and Administration
?I. 1pecial 'ro-ects
?II. Information %echnology
Although speciali#ation is critici#ed very much but I must say that for a large
organi#ation li!e '%()$ speciali#ation is a pre"requisite. '%()Es organi#ational chart
shos a vertical e&pansion in the positions of the organi#ation.
And thatEs the reason that in '%() -ob requirements and manager 3in"case of
'%() and 1/?'4 specifications are developed and matched to assign personnel. /very
manager or 1/?' in"case of '%() has his or her on 1/?' administration department$
ho is one of the assisting sub heads to the company$ 1ecretary$ @M internal Audit and
@eneral Manager 1olutions$ ho again assist the president. %he administration 1/?' in
'%() is obliged to ta!e care of so many things$ for e&ample5
:e F she have to handle all the issues related to human resource and
planning.
:as to ta!e care of co"ordination among different departments.
;ill handle issues related to transport and telecommunication.
And so many other activities li!e public relations$ :+ telecommunications
etc.
2or all these activities$ he F she are then supported by eleven more managers ho
again are the e&perts in their on fields.
9D
O#erati8e De#artme"t* !7 PTCL
%he operative functions of the '%() can be divided into the folloing operative
departments.
I' P!9iy F!rmati!" a"d Direti!"*'
'resident$ 1ecretary and Board of '%()
II' Admi"i*trati!"'
@eneral Administration$ +ules$ +egulation and +ecruitment$ %ransport$
1ecurity$ ;elfare Branches.
III' Trai"i"? Or?a"iHati!"*'
%1($ *'@I%$ +egional 1chools.
I0' Fi"a"e a"d A!5"t*'
Internal Audit$ 'ension (ell$ Accounts 8ffices.
I0' St!re* a"d 3!r>*6!#*'
@eneral 1tore Depot$ 'urchase Branch$ %elegraph ;Fshop.
0' C5*t!mer Ser8ie* a"d Sa9e Pr!m!ti!"'
(ustomer 1ervices$ 'rinting G 'ublications.
0I' P9a""i"? a"d De8e9!#me"t'
Development Administration$ 'lanning Branch and +egional Development
offices.
0III' Mai"te"a"e a"d O#erati!"' +egional 8ffices$ %elephone$ %elegraphs$
+adio$ ;ireless Divisions.

9C
<>
Fi? B'1 PTCL Or?a"iHati!"a9 C6art a"d De#artme"tati!"
Pre*ide"t - C'E'O
C!m#a"y
Seretary
B!ard !7 Diret!r* T!# Ma"a?eme"t
C6ie7 E"?i"eer*
Se"i!r E$e5ti8e
0ie Pre*ide"t
E$e5ti8e 0ie
Pre*ide"t
B5*i"e**
De8e9!#me"t
Admi"i*trati!"
CO#erati!"*D
S!5t6F Kara6i
Pr!5reme"t
De8e9!#me"t
CO#erati!"*D
Ce"tra9F La6!re
CO#erati!"*D
Ce"tra9F I*9amaGad
SE0P
C!r#!rate A77air*
SE0P
O#erati!"*
SE0P
Fi"a"e
SE0P E*tate
Ma"a?eme"t
SE0P HR -
Admi"i*trati!"
SE0P
S#eia9 Pr!Jet*
SE0P
IT
Admi"i*trati!"
Mai"te"a"e -
O#erati!"
De8e9!#me"t
B5*i"e**
De8e9!#me"t
B5*i"e** P9a""i"?
- Strate?y
I"ter"ati!"a9
C!mm5"iati!"
I"7!rmati!"
Te6"!9!?y
A!5"t*
Fi"a"e
Mar>eti"?
H5ma" Re*!5re
IT
C5*t!mer Care
,5a9ity A**5ra"e
Ge"era9 Ma"a?er*
C!mme"t* !" t6e Or?a"iHati!"a9 Str5t5re !7 PTCL
%he '%() is a large organi#ation and its offices are situated all over the country.
It has more division of labor$ more vertical levels in the hierarchy and the more
geographically dispersed the '%() units$ the more difficult or comple& it is to
coordinate people and their activities. :oever the decision ma!ing authority is also
divided among the top management and +egional /&ecutives according to their
responsibilities.
%herefore e can say that decision ma!ing is highly centrali#ed in upper level of
Management in '%(). As I analysis that :uman +esource ing has been established in
'%() e&plicitly to implement :uman +esource strategies and to adopt modern$
innovative and best proven policies to ma!e '%() a responsive and competitive service
organi#ation. %o strengthen the :uman +esource ;ing the position of Director @eneral
3Administration4 has been filled and recruitment for other senior position is in process. In
ne and changed scenario hen the ne players in %elecom 1ector have started building
their core organi#ations and li!ely to cause attrition in '%() human resources.
%he '%() has given ne dimensions to human resource activities. '%() efforts
are being made to development of a competitive or!force through rigorous training and
ith programEs to improve the retention of these employees. %o deal ith the situation
'%() has transformed its human resource department to focus on modern management
practices. ;ith responsibility for creation and diffusion of the ne human resource
culture. More emphasis is being given to the formulation of clear policies the areas of
training$ recruitment$ transfer Fpostings compensation etc. %he on going salient human
resource activities are includes$ completion of human resource information systems$
formation of ne service rules$ ne -ob description rightsi#ing$ compensation
management$ performance appraisal system$ performance standards training and
development$ organi#ational development. It is obvious that '%() is being given special
attention to building human assets.
<,
CHAPTER /
PRACTICAL OF PTCL NTR:IIF D'I'KHAN
ORGANI4ATIONAL CHART OF PTCL NTR:.F D'I'K6a"
%here are to regional offices in K'K hich provides telecommunication services
to the peoples of K'K. 8ne is the *orthern %elecommunication +egion"I 3*%+"I4 and the
other is *orthern %elecommunication +egion"II 3*%+"II4. *%+"II controls the areas
D.I.Khan to Khyber Agency and D.I.Khan to *orthern Areas. *%+"II controls the areas
D. I. Khan to 'eshaar and D. I. Khan to *orth and 1outh ;a#iristan %ribals. Both the
regions have their on @eneral Manager hich is the head of the regions. %he
8rgani#ational (hart of '%() *%+"II$ D.I.Khan is shon in 2ig /'1. %he chart shos
that @eneral Manager *%+"I,$ D.I.Khan is the head of all the departments hich are
under control of *%+"I,$ D.I.Khan. %here are some other departments hich are given in
the chart of *%+"I,$ D.I.Khan$ li!e Digital Pone$ 'hone I D.I.Khan$ 'hone II D.I.Khan$
%elegraph D.I.Khan$ %elegraph Mala!and$ +evenue and Account$ etc. /ach of the
department has their on Director and every Director have their on subordinates hich
or!s under the Director. /ach Director responsible to the @eneral Manager *%+"I,$
D.I.Khan. *o e e&plain the 2inance department of *%+"I,$ D.I.Khan hich or!ed
under the control of Budget and 'ayment department of *%+"I,$ D.I.Khan.
<6
Fi? /'1 Or?a"iHati!"a9 C6art OF PTCL NTR:II D'I'K6a"
<9
DEPARTMENTATION OF PTCL NTR:IIF D'I'K6a"
Departmentation of the '%() *%+"II$ D.I.Khan is the 1ub"Department of Budget
and A@M 32inance4 is the head of 2inance Department and or!ing under the control of
Director 3Budget and 'ayment4 of '%() *%+"II.
%here are to departments hich controlled the financial activities of '%()
*%+"I,$ D.I.Khan
1' B5d?et a"d Payme"t !7 PTCL NTR:IIF D'I'K6a"
CID CFi"a"e De#artme"tD
.' Re8e"5e a"d A!5"t* !7 PTCL NTR:IIF D'I'K6a"
CID CA!5"ti"? Sy*temD
Director *%+"II is the head of each Department and all these departments are
controlled by the Director *%+"II and Director *%+"II is or!ing under the
administrative control of @eneral Manager *%+"II D.I.Khan.
B5d?et a"d Payme"t De#artme"t !7 PTCL NTR:II D'I'K6a"
%he Budget and 'ayment department of '%() managed the budget hich
provided by the '%() :eadquarter. At the end of /very 2inancial year Budget are
provided by the :eadquarter to every +egion. After issuing the Budget to the *%+"II$ the
director Budget and 'ayment divided the budget into different departments of the *%+"II$
D.I.Khan. %he hole budget process are done by the main headquarter. In regions only
the Budget are divided into the departments.
F5"ti!" !7 t6e B5d?et a"d Payme"t De#artme"t !7 NTR:II
2unction of the Budget and 'ayment department are e&plained the folloing. All
Divisional 8ffices prepared budget and submit to their respective regions for compilation
and further sending to budget branch of '%() :eadquarters for allocation of budget in
relevant head of accounts. %he budget must be prepared during 2ebruary of each year in
hich funds demanded for the coming financial year.
After receiving the funds from '%() :eadquarter the +egional 8ffice further
allocate the funds to their relevant units according to Director payment and budget for the
purpose of draing and disbursement has been posted by the '%() in each +egional
:eadquarter. All Divisional units e&ecuting the or!s of capital$ Maintenance of )ine
<<
and ire$ A G ' and buildings through contractors or quotation basis after obtaining the
2inancial approval of competent authorities. %he contractors and firms ho have
completed the targeted or! submitted their claim invoices to Divisional :eads for
onard submission to DD8 after necessary verification for payment. %he DD8 apply
ban! ceiling from ceiling branch of '%() *%+"II according to available sanctions. Bills
and invoices received from Divisional units. 8n receipt of adequate amount of ceiling
from '%() *%+"II in relevant ban! account the draing and disbursing 8fficer issued
cheque in favor of contractor or supplier through concerned Divisional unit. 2or this
purpose each Draing and Disbursing 8ffice have opened a -oint ban! account in
*ational Ban! of 'a!istan main branches in the city here their headquarter is e&ist. %he
Director 'ayment and budget must sign on the cheque in addition to one signature of
senior accounts 8fficer or Divisional Accounts 8fficer accordingly. All units must
remain in budgetary limit and observed financial rules and regulation as ell as
instructions issued by the +egional and :eadquarters authorities time to time in this
regard. +egional @eneral Managers have no poer to divert the funds from one head to
another head ithout formal approval of the senior /&ecutive ?ice 'resident 32inance4
'%() :eadquarter.
Fi"a"e De#artme"t !7 PTCL NTR:IIF D'I'K6a"
2inance department of '%() *%+"II$ D.I.Khan consisting upon.
I. Budget branch.
II. 2und distribution branch
III. Ban! ceiling branch
2inance department of '%() is headed by the A@M 32inance4 under @eneral
Manager *%+"II$ D.I.Khan and coordinating the activities of budget$ ceiling and revenue
sections. All Divisional /ngineers and Directors send their operating and capital budget
estimates to Director Budget and treasuries of '%() *%+"I,$ D.I.Khan. %he budget and
softare branch compiled report on budget from provided data and put up in board
meeting for approval.
%he funds allocated to +egional heads are to be further allocated to Divisional
units or!ing under their control. %he DD8s send ceiling demand according to monthly
requirement as per requirement of each field unit attached ith the concerned DD8.
<=
In response to the DD8s demand the ceiling branch issued draing limits to Pero
balance accounts in *B' Branches. %he branches ma!e payments to DD8 concerned
against their cheques or the party the cheque issued in his favour by the DD8. %hese
branches furnish cheques dran by the DD8s to main branch of *B' main branch
D.I.Khan. *B' main branch D.I.Khan debits the all amounts to cheques. %o main account
of '%() and credit the concerned ban! branch.
%otal DD8s in the '%() all over the country are <= and have direct access to
main server in '%() :eadquarter Islamabad through DD8 8*)I*/ 1J1%/M. All
entries of payment and receipts made by the DD8s directly. %his softare recently
installed and starts its functions. 1oftare has the capabilities to record the all entry
according to the financial accounts requirements. *o e discuss the 2unction of
2inance Department of '%() *%+"II.
F5"ti!"* !7 t6e Fi"a"e De#artme"t !7 PTCL NTR:IIF D'I'K6a"
%he Ma-or function of '%() 2inance Department includes obtaining resources
from oners and providing them a return on their investment and obtaining resources
from creditors and repaying those borroings. (ommon e&amples of cash inflos from
financing activities include the issuance of notes$ bonds$ mortgages and other short or
long term borroings and the issuance of common and preferred stoc!. (ommon
e&ample of cash outflo of 2inance Department of '%() from financing activities
include repayment of these borroings$ the payment of cash dividends and the purchase
of treasury stoc!.
Fi"a"e *y*tem
2inance department of '%() *%+"II$ D.I.Khan is headed by the Director Budget
and 'ayment and coordinating the activities of budget$ ceiling and revenue sections. All
the Divisional Directors send their operating and capital budget estimates to Director
Budget and 'ayment of '%() *%+"II$ D.I.Khan.
%he budget and softare branch compiled report on budget from provided data
and put up in board meeting for approval.
<B
%he funds allocated to +egional heads are to be further allocated to Divisional
units or!ing under their control. %he DD8s send ceiling demand according to monthly
requirement as per requirement of each field unit attached ith the concerned DD8. In
response to the DD8s demand the ceiling branch issued draing limits to Pero balance
accounts in *B' Branches. %he branches ma!e payments to DD8 concerned against their
cheques or the party the cheque issued in his favour by the DD8. %hese branches furnish
cheques dran by the DD8s to main branch of *B' civic center Islamabad. *B' main
branches D.I.Khan debit the all amounts to cheques. %o main account of '%() *%+"II$
D.I.Khan and credit the concerned ban! branch.
%otal DD8s in the '%() all over the country are <= and have direct access to
main server in '%() :eadquarter Islamabad through DD8 8*)I*/ 1J1%/M. All
entries of payment and receipts made by the DD8s directly. %his softare recently
installed and starts its functions. 1oftare has the capabilities to record the all entry
according to the financial accounts requirements. In compliance ith the code of
corporate @overnment the '%() give the folloing statements.
2inancial statements$ prepared by the management of company present fairly its
state of affairs$ the result of its operations$ cash flos and changes in equity.
'roper boo!s of the company have been maintained.
Appropriate accounting policies have been consistently applied in preparation of
financial statements and accounting estimates are based on reasonable and prudent
-udgment.
International Accounting 1tandards as applicable in 'a!istan have been folloed
in preparation of financial statements and any departure there from has been
adequately disclosed.
LOAN AND BORRO3ING
%he )oans and borroings are recorded at the proceeds received. 2inance charges
are accounted for or an accrual basis and are either added to the carrying amount of the
instrument or included in creditors$ accrued and other liabilities to the e&tend to the
amount remaining unpaid. /&change gains and losses arising in respect of loans or
borroing in foreign currency are added to the carrying amount of the instrument.
<A
IN0ESTMENTS
Investments of '%() *%+"II$ D.I.Khan are initially measured at cost. At
subsequent reporting dates$ the company revies the carrying amount of the investment
to assess hether any indication that such investments have suffered an important loss is.
If any such indication e&ists the recoverable amount is estimated in order to determine the
e&tent of the impairment loss if any impairment losses are recogni#ed as e&pense.
;here an impairment loss subsequently reverses$ the carrying amount of the
investment is increased to the revised recoverable amount but limited to the e&tent of the
initial cost of the investment. A reversal of the impairment loss is recogni#ed as income.
A!5"t* a"d Re8e"5e De#artme"t !7 PTCL NTR:IIF D'I'K6a"
Both directors of 2inance and +evenue are or!ing under the control of @eneral
Manager *%+"II$ D.I.Khan. Director +evenue is responsible for smooth creation and
collection of +evenue. '%() :eadquarters controls all operations through +egional
@eneral Managers. In each +egion the Director +evenue and Accounts and 1enior
+evenue 8fficers has been entrusted the responsibilities of revenue collection against
services offered to the customers. All Directors or!ing in each Division submitted
revenue statements along ith supporting documents in Billing and +evenue branch.
Accrual Accounts on monthly basis are prepared and submitted to billing and revenue
branch in '%() *%+"II$ D.I.Khan.
+evenue collections managers in various head of accounts. %he +evenue
Department performed the main function to reali#e the billed amount and !eeping in
proper head of accounts. %he billing collection functions performed by the different
ban!s in different accounts named M1ystem Billing (ollectionM computeri#ed bills are
received in system collection accounts by the concerned ban!s and '%() customers
service centers and amount collected transferred in Main system account. %he amount
collected on account of demand for installation of ne telephone connection or for any
other services and recovery from defaultersE subscribers in non system account and all
ban!s transferred their collection in Main non system account Islamabad.
<D
All +egions send +evenue statements along ith source documents provided by
the ban!s to Billing and +evenue branch of '%() :eadquarters Islamabad. Billing and
+evenue branch compiled the reports containing different head of accounts and prepared
basis for revenue collection for profit and loss accounts. +evenue Department of *%+"II
basic function is to collect bills from the customers. After collecting these bills the
amount are transferred to the '%() :eadquarter Main Branch.
A!5"ti"? Sy*tem !7 PTCL NTR:IIF D'I'K6a"
Up to 7une ,CC, the Accounts of '%( ere prepared on a cash single entry basis
but the 7une ,CC6 accounts have been prepared under the International Accounting
1tandard 3IA14 double entry accrual bases.
All decision ma!ing in an organi#ation has an impact on its financial viability.
%he management decisions are also greatly influenced by the financial information that
the accounting process generates. 1ince becoming '%() significant progress has been
made to over haul the accounting system of '%(). %he Accounting systems of '%() are
prepared by the Director +evenue and 1enior Account 8fficer of +evenue Department.
'%() has not only introduced the mercantile system of double entry based on recognition
of accruals but have also computeri#ed the accounting system. It is also heartening to note
that has been achieved by relying totally on in house e&pertise. %he '%() allocated
accounts code to each assets$ revenue and e&penses head. %he account codes have been
classified into the account heads for balance sheet and profit and loss accounts. All
e&penditure capital and revenue are coded according to its relevant DD8 and function
codes.
ACCOUNTING CODE RANGE
'%() *%+"I,$ D.I.Khan has also allocated codes to all regions and the DD8s.
%hese codes are being used for all transactions hether in cash$ through ban! or
accounting for receipts from store. %hese codes are given in Appendi& %C&
<C
PAYMENT 0OUCHER
'%() *%+"I,$ D.I.Khan has designed a payment voucher hich based on double
entry system. It is also the source document for entering the transaction into the
accounting softare on computers. %he step instructions are to be folloed by all DD8s
for recording the transaction are consists on the folloing items.
I. 'ayment voucher *o.
II. Date
III. (ashF(heque
I?. (heque *o.
?. *ame of payee.
?I. Ban! (ode *o.
?II. Amount in 2iguresFords$
?III. 'urpose.
IO. 'ro-ect code.
O. DD8 (ode.
OI. 2unction code.
OII. Account *o.
OIII. Debit and (redit.
OI?. 'ayee *o.
RECEIPT 0OUCHER'
%he '%() *%+"I,$ D.I.Khan has been used a receipt voucher hich is pre"
numbered and contains three pages. %he first to pages of the voucher are perforated
page ", is meant to be handed over to the depositor hereas page"6 is use in '%() *%+"
I,$ D.I.Khan Account. 'age three is to be retained by the (ashier ma!ing payments. It
may be noted that voucher is to be used for actual receipts and not for deduction from
payments being made refund of a temporary advance by an employee is to be routed
through receipt voucher but in case temporary advance is recovered from salary of the
employee the transaction need not be through the receipt voucher. %he filled in receipt
voucher shall from the basis for data entry into computer consists on the folloing items.
I. Boo! *o.
II. +eceipt voucher no.
III. Date$ (ash$ (heque$ Amount etc.
=>
I?. +eceived from.
?. DD8 code no.
?I. 2unction code and account no.
?II. Debit and (redit.
(OURNAL 0OUCHER
7ournal voucher are used for accounting transactions that do not involve cash
payment or receipt i.e. ad-usting entries. %he -ournal voucher is also to be used for
transfer of funds from the collection accounts to '%() *%+"I,$ D.I.Khan as this
transaction does not change the balance of cash in hand or at ban! of the DD8. %he main
steps are as under5"
I. 7ournal voucher no.
II. Date.
III. Account (ode$ 2unction code.
I?. Amount of Debit.
?. Amount of (redit.
?I. Brief narration.
?II. 1ignature of concerned 8fficer.
SCHEDULES
After all the vouchers have been prepared for the month$ the preparation of the
schedules for each head of account starts. %he accounting softare for commercial
accounting automatically prepares all the accounts schedule after all the vouchers have
been fed into the computer and posting completed at the end of month.
ACE:/+
A summary are to be prepared by each DD8 hile prepared the accounts
schedule$ the net debit or credit balance appearing against each head of account in the
account schedules is posted to on the debit or credit column of the A(/"<> against the
relevant code. %he DD8s are submitting the A(/"<> along ith the accounts schedules
and the supporting vouchers to '%() Accounts Directorate )ahore so as to reach there on
the Bth of the ensuing month for further process.
=,
CHAPTER 1
S3OT ANALYSIS OF PTCL NTR:II
%he term 1;8%$ in management literature stands for strengths$ ea!nesses
opportunities and threats$ 1;8% analysis refers to analy#ing the organi#ationEs
internal strength and ea!nesses as ill as e&ternal opportunities and threats in order
to identify niche that the organi#ations can e&ploit. %he purpose of such analysis to
identify and develop the companyEs strength in order to capitali#e on the
opportunities in the company environments and to identify correct companyEs
ea!nesses and formulate strategies to avoid threats confronting the company in its
environment. 1;8% analysis is based on the assumption that if manager carefully
revie and analy#e the strengths$ ea!nesses$ opportunities and threats pertaining to
their organi#ations they can develop useful strategies for curtailing failures and
insuring organi#ational success.
1;8% analysis typically includes analysis an organi#ation from different aspects
such as management$ mar!eting$ fiancQ$ production$ human resource$ research and
development. 1trengths and ea!nesses relate to the internal environment of an
organi#ation$ here as opportunities and threats are brought about by the e&ternal
environment of the organi#ation. In the folloing section both internal and e&ternal
analysis are outlined5 In the ords of peter and Drun!er$ any business$ manufacturing or
any other$ is a business oned by it customers. Because any thing you produce or any
service you provide his to be produced or provided vieing the customerEs choice and
taste. %herefore it is concluded that the customer is the ultimate boss of any business.
M%his standing of a business in a customer mind is !non is the image of that very
businessN. Image of any business is one of the most important things for any type of
business. ;hether you ant to produce some thing$ ant to capture a mar!et$ penetrate a
mar!et$ go globally or ant to diversify the product line. /ach sand every decision and
strategy is ta!en and formulated !eeping in vie$ ho does the business stand in the
customers eyes0 8r hat it is ran!ing in customer mind0 A good quality product of a bad
image company or a company ith ne e&istence ould not sell it all or ould not meet
the standards or ob-ectives and goals but a poor quality product or produced of fair or
=6
Medium ould sale li!e product of super qualityN -ust because of its imageN. But
customerEs image of a product or product of a company is not Mthe hole factsN. +uther a
companyEs on management vie about its on company or business is also very
important.
%he management of accompany$ obvious of the facts$ here its company or
business stands in customerEs eye could never ma!e its company pauperi#ed in
customerEs and could not develop its companyEs or business good or sound image. 8nly
hen the management ould !no its standing ould they strive for the development of
sound image and the business or company ould get customer acceptance. :o ould
the management !no about its companyEs or business standing0
1o many methods are adopted for that purpose. 8ne such tool is called M1;8%N
Actually 1;8% stand for5
1"""""""""""""""""1trengths
;""""""""""""""";ea!nesses
8""""""""""""""""8pportunities
%""""""""""""""""%hreats
1;8% is a tool$ used by the management of a company initially !no here does
its business stands.
INTERNAL ANALYSIS
An internal analysis of an organi#ation is the analysis of its strengths and
ea!nesses. Unless a firm has internal strengths and controls its ea!nesses$ it canEt ta!e
advantage of opportunities and avoid threats$ hich the e&ternal environment confronting
the organi#ation presents.
2olloing are the main strengths and ea!nesses of '%() *%+"II D.I.Khan5"
STRENGTHS
1trengths are positive internal characteristics that the organi#ation can e&ploit to
achieve its strategic performance goal. %hese are the strengths hich are given belo.
=9
M!"!#!9y !7 PTCL
Due to this factor there is no any organi#ation and company ho provide the
facility of fi&ed lines in D.I.Khan city. '%() is the company ho is trusted by the
subscribersFusers. It has ide range and can easily access to ide and distant local areas
in D.I.Khan.
De#e"de"e !7 Te9e!mm5"iati!" C!m#a"ie* !" PTCL
All the %elecommunication companies are dependant on '%(). All the mobile
companies have to ta!e permission from '%(). All the local '(8Rs 3'ublic (all 8ffices4
and I1'Rs 3Internet 1ervice 'roviders4 in the D.I.Khan city are Dependant on '%(). %hey
cannot start and e&pand their business ithout the permission of '%() *%+"II$ D.I.Khan.
L!= T5r"!8er Rate
'%() *%+"II$ D.I.Khan provides too many facilities to its employees and
or!ers such as good salaries$ medical and home facilities. %hey also en-oy the facility of
free local calls too. 1o therefore the entire or!er doesnEt ant to leave the organi#ation.
%here is lo turnover rate and in this ay company maintain its value and standard.
/mployees are satisfied in the beginning of this 8rgani#ation.
3LL C3ire9e** L!a9 L!!#D
'%() *%+"II$ D.I.Khan has strong financial position. therefore$ '%() can start
ne %echnology of ireless phone in order to reach those areas$ here it is difficult to
place the netor! %elephone lines. 1o by introducing and launching this technology$
'%() can access to the hilly and ide areas of K'K. %his helps in generating of more
revenue.
STRONG FINANCIAL POSITION
'%() *%+"II$ D.I.Khan has also a strong financial position and it has too many
financial resources in order to invest it in ne technologies to compete and maintain its
position in mar!et. %here are a good netor! of '%() *%+"II$ D.I.Khan in K'K and
*orthern areas therefore the collection of revenue are very ell.
=<
3EAKNESSES
M;ea!nesses are the internal characteristics that may inhabit or restrict the
organi#ationsN. 8r a ea!ness can be defined$ as an area in organi#ation here the
organi#ation is not is good doing sometime as its competitors are.
A ea!ness is something that is lac!ing in organi#ation thus putting the
organi#ation at competitive disadvantages. ;ith the above 1trengths '%() *%+"II$
D.I.Khan have also ;ea!nesses.
'%() *%+"II$ D.I.Khan has the folloing ea!nesses.
C6a"?e !7 Ma"a?eme"t
Although '%() *%+"II$ D.I.Khan is a good +egional office of '%() but there
are some ea!nesses hich have effected the hole department. 1ome of the officers are
acting as dictator. *o bodies of the upper management ill cooperation ith their
employees.
Em#9!yee)* di**ati*7ati!"
/mployees are not satisfied from the upper management and the upper
management has also dissatisfaction from the top management. %he other point of
dissatisfaction is that there are no promotions of qualified staff. During the internship
there are so many qualified people hich ere or!ing on loer position. If the upper
management promote these employees to their seats than that ill be effected the
organi#ation to positive side. (hange of ne Management effected the Management and
the /mployees.
La> !7 ,5a9i7ied Sta77
In effective communication beteen the higher and loer staff$ this is due to less
qualified loer staff. If there ill be ell qualified staff then no chance of system failure.
%he staff of '%() *%+"II$ D.I.Khan is not highly qualified and many of them also do not
aare about their responsibilities and -obs. Most of the or! is done by the irrelevant
persons$ li!e the or! of cler! is done by the technician and ireman.
==
M!re Te9e#6!"e 9i"e* 7a59t*
'%() *%+"II$ D.I.Khan faces too many %elephone line faults as there is no
standard in D.I.Khan city$ for building roads and seerage system and building houses.
%herefore telephone lines that are placed underground are alays affected by the ater
and due to the constructions.
La> !7 C!mmitme"t
%he staff members are not committed to their -obs and most of the officers sho
negligence to customerEs complaints and often delay in solving the customerEs problems
and needs.

E2TERNAL ANALYSIS
%he management of every organi#ation has to monitor the environment
confronting the organi#ation constantly to identify the factors that may require change.
%his is necessary to !eep up ith ne developments and changes in the environment. A
change in the e&ternal environment may be either an opportunity or threat. In either case$
the organi#ation to properly employ it strength to capitali#e opportunity and avoid
minimi#e a negative effects of threat.
2olloing are the main opportunities and threat of '%() *%+"II$ D.I.Khan5"
OPPORTUNITIES
M8pportunities are the characteristics of the e&ternal environment that have the
potential to help the organi#ation to achieve and e&ceed its strategic goalsN
%hese are the opportunities hich are given belo.
M!Gi9e Te6"!9!?y
As in this ne orld of mass communication there is a trend shift from fi&ed line
telephone system to the mobile netor!s as '%() has strong bac! bone in fi&ed line
sector it can easily attract this potential mar!et
=B
CaG9e Net=!r>
'%() as an open opportunity to grape the internet user on commercial basis by
introducing the cable net or! system. As it has gain popularity due to its high speed and
6< hours connectivity.
2olloing are the some other opportunities.
%he revenue can further be generated through better mar!eting strategies.
'%() *%+"II should ta!e measure to ensure that the entire complaint and
customer care center$ hich ill able to serve customers in a better ay.
'%() *%+"II still can e&pand their mar!et by venturing into small cites$
hich are still une&plored.
'rivate mobile companies are getting license from '%A$ hich are source
of revenue as ell. '%() has also launched its on mobile services.
Due to pressure of various governments '%() *%+"II$ D.I.Khan has not
been able to collect sufficient amount of its money from its defaulter but
present government is very strict to collect the arrears ith the help of
*AB$ '%() can cover its million of rupees.
THREATS
%%hreats are characteristics of the e&ternal environment that may prevent the
organi#ation from achieving its strategic goals.&
%here are some threats given belo.
Strate?y !7 Ne= Ma"a?eme"t
;ith the change of the management$ most of the employees are or!ing under
pressure. %hey are disturbed due to fear and tension created by the ne management. As
the ne management has its first step to remove the unnecessary and uns!illed employees
from the organi#ation. 1o in this perspective the performance and efficiency of the
employees is affected.
M!Gi9e C!m#a"ie*
Many mobile companies such as Mobilin!$ ;arid %elecom$ and %elenor are
threats for '%() *%+"II$ D.I.Khan. 'eople are increasingly using mobiles and ignoring
'%() *%+"II$ D.I.Khan connections$ that is hy there is a decline in the use of fi&ed
=A
connections of '%() *%+"II$ D.I.Khan. %his decrease the revenue of '%() *%+"II$
D.I.Khan.
%here are some others threats for '%() *%+"II$ D.I.Khan given the folloing.
In case '%() is privati#ed$ there ill be a lot of shutting of
employee and the or! force ill be reduced. 1o there is a threat to may
employee of there -ob being lost and it ill effect the /mployees of *%+"II$
D.I.Khan.
'%() had the monopoly in telecommunication services till 6>>9$
hich is not off. *o all the companies are alloed to enter in the telecom
business in the 'a!istan. %he ne competitions are very challenging for
'%() *%+"II$ D.I.Khan.
%he unstable economic condition of 'a!istan is a great threat to
'%(). In strong economic condition$ the groth of business is very frequent.
%he poor economic condition increases the inflation rate$ hich is very
threatening for '%() *%+"II$ D.I.Khan.
%he management of '%() should prepare a training plan for the
staff of each regional centre because these trainings play an important role in
the output of employees. %he training should be to typesE local training
program and foreign training program.
CONCLUSION
'%() *%+"II$ D.I.Khan is one of the good +egional offices in K'K and
performing ell but still there is alays a room to improve.
*%+"II$ D.I.Khan should develop the strategies to encounter the future challenges
through its opportunities for those areas here *%+"II$ D.I.Khan have no Access. %o
remain the leader in the telecom sector in 'a!istan '%() has to give importance to
customers by offering lo charges. '%() should avails its opportunities and reduce the
ea!nesses and threats by ta!ing concrete steps.
=D
CHAPTER @
FINDINGS AND PROBLEMS
Ad!#ti!" !7 Ne= Emer?i"? Te6"!9!?ie*
Fi"di"?
'%() is not adopting *e /merging %echnologies. %his ill create problem to
cope ith the challenges of the modern orld and ne developments in
telecommunication sector.
S5??e*ti!"
In order to meet the ne orld challenges$ it is very important for '%() *%+"II$
D.I.Khan to bring some ne changes in the e&isting system. ;ith the implementation of
the state of the art technology '%() *%+"II$ D.I.Khan ould be able to compete and
face the challenges of the ne orld.
Pr!8i*i!" !7 Trai"i"? !7 em#9!yee*
Fi"di"?
%here is no provision for training of employees. %his ill affect the development
of the employees and the organi#ation as ell.
S5??e*ti!"
It is the main responsibility of the '%() *%+"II$ D.I.Khan upper management to
give proper training to its employees because it ill help the employees in the
implementation of ne technologies. %he training should be both local and foreign to
handle technical operations. %raining should also be given in different managerial areas.
%he need for training each and every employee may be identified and training programs
can be designed.
=C
T! ad!#t C!mm5"iati!" am!"? Ma"a?eme"t
Fi"di"?
%here is lac! of (ommunication among Management and employees.
S5??e*ti!"*
'%() *%+"II$ D.I.Khan should communicate changes to its !ey people 3top
management and don ards4. By sharing information and ensuring its acceptance$ there
are some other suggestions hich should adopted by the management to improve the
efficiency.
%here should be strong communication beteen %op management and
)oer management. ;hen top management provides confidence to loer
staff then the relationship ill be strong. )oer management ill be able
to communicate their ne ideas and their involvement in or! ill
increase.
%here should also good relationship beteen middle management and
clerical staff. If the middle management and clerical staff cooperate ith
each other than the strong relationship is possible.
%here should be a good or!ing environment in the offices. %his is
important as productivity is dependent on healthy or!ing conditions. %his
includes both physical and intangible or!ing environment.
N! H!t 9i"e 7ai9ity
Fi"di"?
*o :ot line facility' %his can create problem such as for line fault removal.
S5??e*ti!"
%he '%() *%+"II should introduce :ot line facility for line fault removal in each
and every city of K'K.
B>
BIBLIOGRAPHY
,. D8;*)I*@$ ;I))IAM$ 2.)eonard +. 1ayles 3,CDA4. :o managers Motivate the
imperatives of 1upervision. *e Jor! (olumbia University Mc@ra"hill
company
6. A.A))/*$ )8UI1$ 3,CD= MA*A@/M/*% A*D 8+@A*IPAI8*. %o!yo$
Mc@ra"hill (ompany4.
9. )U%:A*1$ 2+/D$ 3,CD=4$ 8rgani#ational behavior$ *e Jor!$ Mc@ra"hill
<. K88*%P :A+8)D D8**/) 1J1I)8$ and ;/I*+I(:$ :/I*P. 3,CD<4
Management. *e Jor! Mc@ra":ill boo! co.6>><.
=. DA%A B88K$ ,CCD",CC>$ *orthern %elecommunication (orporation )imited$
'eshaar
B. Khan 7ahan#eb$ 36>>,$ *ovember4$ :uman +esource Management" '%(l.
Dissertation report submitted at IM1$ University of 'eshaar.
A. )uthans 2red$ ,CD=$ 8rgani#ational behavior$ *e Jor! Mc@ra :ill
D. '%() Annual +eport 6>>D
C. 38nline4 Available http5FF.ptcl.com.
B,