Pakistan Telecommunication Authority's (PTA) income has declined sharply over the past three years, with the prolonged delay in auctioning 5G spectrum emerging as the principal factor behind a weakening financial position that has also reduced the regulator's contribution to the national exchequer.
According to the latest report of the Auditor General of Pakistan (AGP), PTA's total income fell by more than 62 percent, declining from Rs94.1 billion in FY2022-23 to Rs35.3 billion in FY2024-25. During the same period, the authority's expenditure increased from Rs3.321 billion to Rs5 billion, driven by higher spending on human resources, administrative operations and legal expenses.
The deterioration in PTA's financial performance also reduced transfers to the federal government. The audit report showed that the regulator's overall revenues declined from Rs109.254 billion in 2022 to Rs34.556 billion in 2025, representing a fall of nearly 68 percent. Consequently, surplus funds deposited into the Federal Consolidated Fund (FCF) fell from Rs102.542 billion in 2022 to Rs28.431 billion in 2025, reducing the authority's fiscal contribution.
The AGP warned that PTA's revenue could decline further to around Rs4.637 billion unless corrective measures are implemented. According to the report, the regulator's financial position has been affected not only by delays in spectrum auctions but also by rising operational costs and growing legal and recovery-related challenges.
The audit also highlighted uneven development across Pakistan's telecommunications sector, noting that service quality and broadband speeds in rural and remote areas continue to lag behind those available in urban centres. It concluded that the expansion of the telecom industry has been largely quantitative rather than uniformly qualitative.
The report further expressed concern over pending litigation, stating that recovery of outstanding dues has become increasingly dependent on court decisions. It noted that delays in recovering Annual Regulatory Dues (ARDs) directly affect federal revenues. The AGP also identified governance and internal control deficiencies within the regulator. Among them was the preparation of PTA's FY2024-25 financial statements under accounting policies that had not received formal approval from the federal government.
In addition, the audit warned that, if current trends continue, human resource costs could consume 88.13 percent of PTA's projected revenues by 2026. To address the decline, the Auditor General recommended conducting timely spectrum auctions and aligning regulatory decisions with long-term technological development.
The report also called for bringing data centres and emerging information and communication technology infrastructure under a formal licensing and regulatory framework. Among other recommendations were the prompt enforcement of recovery orders for outstanding regulatory dues, mandatory Quality of Service (QoS) surveys to ensure compliance, and criminal proceedings in cases where organised telecommunications fraud is established. The AGP further advised PTA to strengthen internal financial discipline regarding employee salaries and benefits and to obtain formal federal government approval for its accounting policies.