Telephone Industries of Pakistan to revive through JVs

The Ministry of Information Technology and Telecommunication has announced that Telephone Industries of Pakistan (TIP) will be revived through joint ventures.

The ministry has short-listed two companies for the Financial Advisor (FA) to provide Transaction Advisory Services (TAS) to solicit partnership through a suitable mode. The shortlisted companies included Ahmad Shahid & Co and Ijaz & Co. Both the companies have been asked to submit financial bids .

The TIP is a State-Owned Enterprise (SOE) is currently running in losses of around Rs500 million annually. The current challenges being faced by TIP included obsolescence of machinery, plants and skill base, intense competition in the telecom sector (especially vendor market), legacy of public sector culture of entire workforce, and above all heavy burden of salaries.

It is expected that revival of TIP would not only result in good revenue generation, but will also create many job opportunities for young people.