Report for the Quarter

&
Nine Months Ended
March 31, 2010
 CONTENTS

Board of Directors 3

5-6

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3rd Quarter Report

PAKISTAN TELECOMMUNICATION COMPANY LTD.

Board of Directors
Naguibullah Malik
Chairman PTCL Board
Secretary (IT & Telecom Division)
Ministry of Information Technology
Government of Pakistan
Islamabad.

Abdulrahim A. Al Nooryani
Chairman & Chief Executive Officer
Etisalat International Pakistan L.L.C
Executive Vice President (Contracts & Administration)
Etisalat, UAE.

Mushtaq Ahmad Bhatti

Member (Telecom)
Ministry of Information Technology
Government of Pakistan
Islamabad.

Khurshed Ahmed Junejo

Ambassador
Embassy of Pakistan
Abu Dhabi, UAE.

Salman Siddique
Secretary (Finance)
Ministry of Finance
Government of Pakistan
Islamabad.

Abdulaziz A. Al Sawaleh
Chief Human Resources Officer
Etisalat, UAE.

Fadhil Al Ansari
Executive Vice President (Engineering)
Etisalat, UAE.

Abdulaziz H. Taryam
General Manager (Northern Emirates)
Etisalat, UAE.

Dr. Ahmed Al Jarwan

General Manager/eRE
Etisalat, UAE.

Farah Qamar
Company Secretary

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 PAKISTAN TELECOMMUNICATION COMPANY LTD.

Corporate Information
Management
Walid Irshaid
President & Chief Executive Officer

Muhammad Nehmatullah Toor

S.E.V.P (Finance) / CFO

Syed Mazhar Hussain

S.E.V.P (Admin & Procurement / HR)

Sikandar Naqi
S.E.V.P (Corporate Development)

Naveed Saeed
S.E.V.P (Commercial)

Tariq Salman
S.E.V.P (Business Zone North)

Abdullah Yousef
S.E.V.P (Business Zone South)

Muhammad Nasrullah
Chief Technical Officer (CTO)

Javed Mushtaq
Chief Information Officer (CIO)

Farah Qamar
Company Secretary

Dr. Syed Mohammad Anwer

E.V.P (Legal)

Bankers
Askari Bank Limited
Citibank N.A.
Faysal Bank Limited
Habib Bank Limited
MCB Bank Limited
National Bank of Pakistan
Royal Bank of Scotland
Standard Chartered Bank Limited
United Bank Limited

Auditors
A.F. Ferguson & Co.
Chartered Accountants
Ernst & Young Ford Rhodes Sidat Hyder
Chartered Accountants

Registered Office
PTCL Headquarters,
Block-E, Sector G-8/4,
Islamabad-44000, Pakistan.
Tel: +92-51-2263732 & 34
Fax: +92-51-2263733
E-mail:company.secretary@ptcl.net.pk
Web: www.ptcl.com.pk
Share Registrar
M/s FAMCO Associates (Pvt.) Limited
Ground Floor, State Life Building No. 1-A,
I.I. Chundrigar Road, Karachi - 74000
Tel: +92-21-32422344, 32467406
Fax: +92-21-32428310

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PAKISTAN TELECOMMUNICATION COMPANY LTD.

Directors' Report
The Directors of Pakistan Telecommunication Company Limited (PTCL) are
pleased to present to the shareholders unaudited financial statements of the
Company for the nine months ended March 31, 2010.

The PTCL Group Revenue of Rs. 73.6 billion for the period under review was 7%
higher compared to the corresponding period last year. The revenue earned by
PTML (Ufone), the wholly-owned subsidiary of PTCL, was higher by 22%, while
PTCL's revenue decreased by 4%. PTCL's domestic revenue declined by 7% where
as International revenue registered an increase of 23%.

The Group net profit of Rs. 9.2 billion showed a 12% growth compared to same
period last year. PTCL's Profit after Tax at Rs. 7.9 billion was 9% higher than the
same period last year. The growth in profitability was made possible because of
better cost controls resulting in 17% decrease in Administrative and General
Expenses, 32% increase in Other Operating Income due to improved realization of
receivables as well as prudent utilization of available funds and 62% savings in
Finance Cost because of relative stabilization of Pakistan Rupee during the period.

Cognizant of the ever evolving telecom needs of the consumers in various strata of
the society, your Company is developing products and solutions based on the latest
available technologies so as to meet the expectation of transforming itself into an
integrated service provider. During the period under review, PTCL continued its
strategy of enhancing Broadband penetration for DSL which now covers more than
500 cities in the country and is expected to reach 1,000 cities by the end of the
current year thus enjoying the status of being the market leader with 80% market
share. At the same time 'EVO', the wireless broadband service, based on 3G with
roaming facility, expanded to all major cities across the country.

To fulfill diversified needs of the landline customer base PTCL introduced a number
of packages for its PSTN users, foremost being a simplified tariff. Value-added-
services include three-party-conference-call and voice-mail-service. Products
including free on-net minutes for new connections, Double-up-unlimited and various
rural and urban packages have proved to be a success. Sustained campaigns in
electronic and print media have ensured a significant improvement in brand image
of PTCL.

PTCL has introduced a range of products and services based on latest technologies
that provide the corporate sector value added solutions. Services that are already
available include Enterprise DSL, I-Sentry (IP video monitoring and surveillance
solution) and Managed services. Several new innovative services launched by the
Company also include Tele-presence (a world-wide video conferencing facility), with
four state-of-the-art Tele-presence centers already commissioned in Karachi,
Lahore and Islamabad, while four more centers are being completed. Based on
latest technologies, PTCL Data Center in Karachi is first of its kind in the country. It
provides data-hosting and disaster-recovery services. Another Data Centre is being
established in Lahore. Unified Communication Services introduced by PTCL fulfill
the voice, data and video requirements of the corporate sector from a single platform

A significant achievement for PTCL was the agreement with National Bank of
Pakistan to provide end-to-end enterprise-wide data connectivity solutions for its
countrywide branch network. The Company has entered into an agreement with
Higher Education Commission to provide 10 GB IP bandwidth data connectivity to
further facilitate educational institutions.

PTCL has been successful in winning more than 50% of all Universal Service Fund
(USF) projects, a scheme of the Government of Pakistan. The Company is in the
process of implementing these projects that provide voice and data services to the
underserved and far-flung areas of Pakistan. Most significant project is the provision
of broadband in USF areas. Another project being completed under this scheme is
1,250 km long Optical Fiber Cable for Baluchistan.

As an acknowledgement of its technical expertise, PTCL's centralized Network

Operation Centre (NOC) has been nominated internationally as one of the six
finalists for the coveted Telecom Management Forum (TMF) Operational

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3rd Quarter Report
Condensed
Interim
Financial
Statements
 PAKISTAN TELECOMMUNICATION COMPANY LTD.

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT MARCH 31, 2010 (UN-AUDITED)

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PAKISTAN TELECOMMUNICATION COMPANY LTD.

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 PAKISTAN TELECOMMUNICATION COMPANY LTD.

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31, 2010 (UN-AUDITED)

Other operating income

- deferred reversal/(charge)

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PAKISTAN TELECOMMUNICATION COMPANY LTD.

CONDENSED INTERIM STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED MARCH 31, 2010 (UN-AUDITED)

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PAKISTAN TELECOMMUNICATION COMPANY LTD.

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED MARCH 31, 2010 (UN-AUDITED)

1.The Company and its operations

Pakistan Telecommunication Company Limited ("the Company") was incorporated in
Pakistan on December 31, 1995 and commenced business on January 1, 1996. The
Company is listed on Karachi, Lahore and Islamabad stock exchanges. The Company
was established to take over the telecommunication business formerly carried on by
Pakistan Telecommunication Corporation (PTC). The business was transferred to the
Company on January 1, 1996 under the Pakistan Telecommunication (Reorganization)
Act, 1996 at which date the Company took over all the properties, rights, assets,
obligations and liabilities of PTC except those transferred to National Telecommunication
Corporation (NTC), Frequency Allocation Board (FAB), Pakistan Telecommunication
Authority (PTA) and Pakistan Telecommunication Employees Trust (PTET). The
registered office of the Company is situated at PTCL Headquarters, G-8/4, Islamabad.
The Company provides telecommunication services in Pakistan. It owns and operates
telecommunication facilities and provides domestic and international telephone services
and other communication facilities throughout Pakistan. The Company has also been
licensed to provide such services to territories in Azad Jammu & Kashmir and Gilgit-
Baltistan.
2.Basis of preparation
These condensed interim financial statements are unaudited and are being submitted to
the shareholders in accordance with the requirements of Section 245 of the Companies
Ordinance,1984 and International Accounting Standard (IAS) 34 'Interim Financial
Reporting'. These condensed interim financial statements do not include all the
information and disclosures required in the annual financial statements and should be
read in conjunction with the financial statements of the Company for the year ended June
30, 2009.
3.Significant accounting policies
Except as disclosed below, the accounting policies adopted in the preparation of this
condensed interim financial information are the same as those applied in the preparation
of audited annual published financial statements of the Company for the year ended June
30, 2009.
IAS 1 (Revised), 'Presentation of financial statements' - effective January 01, 2009. The
revised standard prohibits the presentation of items of income and expenses (that is 'non-
owner changes in equity') in the statement of changes in equity, requiring 'non-owner
changes in equity' to be presented separately from owner changes in equity. All 'non-
owner changes in equity' are required to be shown in a performance statement.
Companies can choose whether to present one performance statement (the statement of
comprehensive income) or two statements (profit and loss account and statement of
other comprehensive income). The Company has preferred to present one statement.
4.Use of estimates and judgements
The preparation of these condensed interim financial statements in conformity with
approved accounting standards requires management to make judgements, estimates
and assumptions that affect the application of accounting policies and the reported
amount of assets, liabilities, income and expenses. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimates are revised and
in any future periods affected.
Estimates and judgements made by the management in preparation of these condensed
interim financial statements are the same as those used in the preparation of the
preceding annual published financial statements of the Company for the year ended
June 30, 2009.
5.Contingencies and commitments
5.1 Contingencies
There has been no material change in contingencies since the last annual audited
financial statements.
5.2 Commitments
Commitments in respect of contracts for capital expenditure amounting to Rs.10,635,308
thousand (June 30, 2009: Rs. 12,352,378 thousand).

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 PAKISTAN TELECOMMUNICATION COMPANY LTD.

7. Long term loans

This includes unsecured loans of Rs. 3,000,000 thousand and Rs. 2,000,000
thousand (June 30, 2009: Rs. 3,000,000 thousand) to Pak Telecom Mobile Limited,
a wholly owned subsidiary of the Company, under subordinated debt agreements.
These loans are recoverable in eight equal quarterly installments commencing after
a grace period of four years in 2013 and 2014 respectively, and carry mark-up at the
rate of three months KIBOR plus 82 basis points.

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PAKISTAN TELECOMMUNICATION COMPANY LTD.

8.1.This represents PTCL's share of fee payable to Emirates Telecommunication

Corporation under an agreement for technical services effective October 1,
2006 at the rate of 3.5% of PTCL group's consolidated annual revenue.

11. Interim dividend

The Board of Directors at its meeting on April 29, 2010 has declared 1st interim
cash dividend of Rs.1.75 (2009: Rs.1.50) per share for the year ending June 30,
2010.
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 PAKISTAN TELECOMMUNICATION COMPANY LTD.

12. Corresponding figures

Corresponding figures have been rearranged and reclassified, wherever

necessary, for better presentation and disclosure:

13. Date of authorisation for issue of financial statements

These condensed interim financial statements were authorised for issue on

April 29 , 2010 by the Board of Directors of the Company.

14. General

Figures presented in these condensed interim financial statements have been

rounded off to the nearest thousand rupees.

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3rd Quarter Report
Condensed
Consolidated Interim
Financial Statements
 PAKISTAN TELECOMMUNICATION GROUP

CONDENSED CONSOLIDATED INTERIM STATEMENT

OF FINANCIAL POSITION AS AT MARCH 31, 2010 (UN-AUDITED)

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PAKISTAN TELECOMMUNICATION GROUP

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 PAKISTAN TELECOMMUNICATION GROUP

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 PAKISTAN TELECOMMUNICATION GROUP

(Rupees in thousand)

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 PAKISTAN TELECOMMUNICATION GROUP

NOTES TO AND FORMING PART OF THE CONDENSED CONSOLIDATED

INTERIM FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED MARCH 31, 2010 (UN-AUDITED)
1. Basis of preparation
These condensed interim financial statements are unaudited and are being submitted to the
shareholders in accordance with the requirements of Section 245 of the Companies
Ordinance,1984 and International Accounting Standard (IAS) 34 'Interim Financial
Reporting'. These condensed interim financial statements do not include all the information
and disclosures required in the annual financial statements and should be read in conjunction
with the financial statements of the Group for the year ended June 30, 2009.
2. Significant accounting policies
Except as disclosed below, the accounting policies adopted in the preparation of these
condensed interim financial statements are the same as those applied in the preparation of
audited annual published financial statements of the Group for the year ended June 30, 2009.
IAS 1 (Revised), 'Presentation of financial statements' - effective January 01, 2009. The
revised standard prohibits the presentation of items of income and expenses (that is 'non-
owner changes in equity') in the statement of changes in equity, requiring 'non-owner changes
in equity' to be presented separately from owner changes in equity. All 'non-owner changes in
equity' are required to be shown in a performance statement. Companies can choose whether
to present one performance statement (the statement of comprehensive income) or two
statements (profit and loss account and statement of comprehensive income). The Group
companies have preferred to present one statement.
IFRS 8, 'Operating segments' - effective January 01, 2009. This standard requires disclosure
of information about the Group's operating segments and replaces the requirement to
determine primary (business) and secondary (geographical) reporting segments of the
Group. Adoption of this standard did not have any effect on the financial position or
performance of the Group. Additional disclosures about each of these segments are shown in
Note 6.
3. Contingencies and commitments
3.1 Contingencies
There has been no material change in contingencies since last audited financial statements.
3.2 Commitments
Commitments in respect of contracts for capital expenditure amounting to Rs.20,686,452
thousands (June 2009: Rs. 25,255,605 thousand).

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 PAKISTAN TELECOMMUNICATION GROUP

As at June 30, 2009 (audited)

8.

9.

10.

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