This metric compares two balance sheet entries, total liabilities i. In other words, investment can define as spending on capital goods by firms which ultimately amplified production of consumer goods. Companies borrow funds through bank loans and bond issues so as to create leverage. PTCL is going to be your first choice in the future as well, just as it has been over the past six decades. The absence of the dividends payable portion of current liabilities in FY05 and its coming back online in FY06was an important contributor to the trend. Also we would like to thanks to Mr.

Such factors will help organization to promote efficiency and effectiveness and gain competitive advantage. Net profit margin tells that how much additional dollar earned by the company has effect on profits. The decline in the profits of the company due to the above-cited reason has led to a decrease in the gross margin percentage also. Such factors will help organization to promote efficiency and effectiveness and gain competitive advantage. The size of the firm has a positive and a significant impact on the financial leverage which means that by increasing one unit of financial leverage the size of the firm increases by 0.

PTCL’s Privatization: The Biggest Financial Scam in Pakistan’s History?

Hamada and Rubinstein type models is that it utilizes leverage values based on accounting flow numbers degree of operating and financial leverage rather than market stock numbers level of operating and financial leverage.

Further, the FY06 also sawan increase in short term borrowings of the company, complemented by increases in other components of current privatizatkon. This effect is moderated favorably by investment in innovation and lower financial leverage Ptlc, Just saving his job by supplying lot of …. PTCL provides telecommunication services in Pakistan.


The relationship between liquidity and investment is positive but insignificant. Long term debt to equities ratio 11 1. Figure -1 shows the subscribers growth of different Cellular Mobile Operators.

case study on ptcl privatization

As Pakistan is one of the major producers of cotton, the country has a sound textile industry. The company’s revenue of Rs Page 6 Table of Contents Abstract 09 Chapter 01 09 Analysis of research problem 1. Intersection of large unbanked population, impressive mobile tele- density along with countrywide sale and distribution channels are the key success factors behind phenomenal growth.

PTCL’s Privatization: The Biggest Financial Scam in Pakistan’s History? – TelecomPK

Mean while, a look at the financial statements of parent companies of cellular companies for 9MCY13 indicates their growth has slowed down. Some are in its favor considering the unnecessary public sector monopoly, massive overheads, evident complex procedures, excessive public administrative, biased and illegal hiring by authorities, uncontrolled corruption, inefficient and redundant resources etc. Click stuudy to sign up.

Analysis of the ca Page 6 Table of Contents Abstract 09 Chapter 01 09 Analysis of research problem 1.

case study on ptcl privatization

They used spearman correlation and regression analysis method. Error Beta t Sig Constant 1 A lesson for policymakers. Now this brings another example to Corporate Governance books and poses immense need to improve upon corporate governance practices.

It has also been licenced to provide such services to territories in Azad Jammu and Kashmir and Pptcl Areas. The effect of size, growth and industry on the financial structure of manufacturing companies.


case study on ptcl privatization

Comparing the above theories and statements with the given roots of PTCL failure, it is evident that several mistakes were occurred and government failed to take dase measures for the effective privatization of PTCL.

Riaz found that Determinants on capital structure, case of Pakistani Government owned and private firms.

Graphical Presentation of PTCL 19 1. Concept of financial leverage in Pakistan 12 1.

Observations Debt Equity On the wireless broadband front, a major upgrade of the WLL CDMA network was rolled out in order to provide wireless broad and services in 17 major cities. Journal of Finance, 39, The employees are confused about their jobs and the future.

Privatization of PTCL. An Unforgotten Failure of Governance

Introduction of Etisalat Introduction of Etisalat Etisalat has been the telecommunications service provider in the United Arab Emirates since and is the number one mobile operator in the UAE. Operating Costs 19 1.

It is fact that asserts were not evaluated on current market basis, but on book value. There are nine major players competing in mobile financial services and branchless banking, from the telecom and banking sector. Economic benefits would only be certain privatizaion arise from selling enterprise in competitive environment and selling a public monopoly with its regulation intact does nothing for competition.