STAFF REPORT IBD: The Telephone Industry of Pakistan (TIP) is presently experiencing serious financial trouble mainly due to the management on the part of the authorities concerned.
According to documents, the existing health of TIP is fast deteriorating following the consistent drop in sales and a substantial cut in its production during the last four years.
“The major reduction within 3-4 years with production dropping drastically and current sale hitting less than Rs70 million against the expenditure of Rs700 million a year,” said the sources.
They said that the production might be around 30 per cent as compared to four years back while its expenditure continued to surge. The TIP has updated the government about the present state of affairs in writing and it has also pleaded to a Senate panel for some prudent measures to match the sale and production with expenditure while utilising new technologies.
The documents reveal that at least Rs1.5 billion of revenue is required for break even to meet the expenditure. The TIP has a negative equity of Rs1.8 billion and accumulated loss of Rs2.6 billion.
Besides one Managing Director (BPS-21), two (BPS-20) are General Managers, 17 (BPS-19) are Deputy General Managers, 18 (BPS-18) are Deputy Managers and 11 Executives (BPS-17) who are presently working at its top hierarchy.