ISLAMABAD: The Pakistan Credit Rating Agency Limited (PACRA) has assigned a preliminary rating to Pakistan Mobile Communications Limited's (PMCL) sukuk issuance, valued at PKR 5 billion. PMCL, recognized as Pakistan's leading telecom operator, boasts a market share of approximately 37% and a subscriber base of 73 million as of March 2025. The company is at the forefront of 3G and 4G services, significantly contributing to the telecom sector's growth.

The expansion of 3G and 4G services has propelled the telecom industry, which recorded a revenue growth of about 17%, reaching around PKR 955.2 billion in calendar year 2024. Within this, cellular mobile operators contributed approximately PKR 629.2 billion. PMCL experienced a 14% increase in revenue, with net margins rising from 1.9% in 2023 to 15.3% in the reviewed period.

PMCL's strategy includes a significant focus on digital financial services, expanding through platforms such as Jazz Cash and Mobilink Microfinance Bank to enhance financial inclusion. The company is also broadening its reach in sectors such as data analytics, cloud computing, fintech, and mobile entertainment.

VEON, PMCL's parent company, continues to invest in Pakistan's digital ecosystem, particularly through over-the-top (OTT) platforms and cloud solutions. Recently, PMCL completed the sale of its tower infrastructure to Engro Connect, becoming the first telecom operator in Pakistan to divest its tower assets.

Despite a leveraged capital structure, with borrowings constituting mostly long-term loans, PMCL maintains an adequate financial risk profile. The leveraging increased to about 69% in 2024, up from 53% in 2023, primarily due to license fee payments, capital expenditure, and short-term debts towards the year's end.

The ratings depend on PMCL's ability to sustain its market position, continue its robust revenue growth, and maintain a sound financial matrix amidst a leveraged capital structure.