Turnaround in Pakistan gets a boost from a new multi-year contract
Talkpool has entered into an agreement regarding field maintenance work for a mobile network in Pakistan. The order value is approximately € 700’000 per year and the agreement enters into force immediately. The customer is one of the top three largest telecom equipment providers in the world.
This kind of managed services contracts are of special interest as the work is long-term and provides a stable recurring base of revenues and workflow. The project covers provision of field maintenance teams and logistics support.
“Field maintenance services are critical, time sensitive and at the heart of keeping telecommunication networks alive. We are positioning ourselves to further strengthen our market leading position in Engineering Services and this project further validates the confidence of our valued customers”…said Talkpool Pakistan’s Managing Director Faraz Zafar.
This is one of several contracts that Talkpool recently has signed, and this marks a shift towards a normalization of the business. There is now a gradual increase in spending from all major telecommunication companies in Pakistan as the market trend is stabilizing.
Faraz Zafar is proud to have been “the first employee and have built the largest network services company in Pakistan. The organisation spans approximately 12 offices all over the country, 200 vehicles and approximately 1’000 employees after starting the new O&M work.”
Labour costs in Pakistan have gone down from an already low level. The very low labour costs combined with a technically skilled workforce and a large population of over 250 million makes Pakistan a suitable outsourcing hub for communication and information technology services. Talkpool has recently received orders to perform communication work remotely from Pakistan for neighbouring countries. Furthermore, Talkpool has signed contracts with innovative technology made in Pakistan that is sold as a service to clients.
Various economic metrics point toward recovery. The Pakistan Stock Exchange (PSX) has been recognised as the world's best-performing stock market in 2024, according to a September report by Bloomberg. The economic recovery narrative includes reports of inflation dropping to around 9.4 percent, compared to 32 percent during the same period the previous year.
CEO Magnus Sparrholm is lowering expectations: “The recent order inflow is a sign of recovery, but we don’t expect a booming business in Pakistan. We’re experiencing a normalisation, but several challenges such as high taxes, a weak currency and low GDP growth continue to bog down future growth prospects in Pakistan.” There is however room for export growth: “Our positioning as a market leader, the low-cost base and high-tech skills is opening up for exporting our Pakistani workforce and technology to other markets”
For more information, please contact:
Magnus Sparrholm, CEO
+41 81 250 2020
About Talkpool AG: Talkpool provides network planning, integration and managed services to telecom networks globally. With its cutting-edge technical expertise, Talkpool offers network operators and communication providers high-quality services to build, improve, and maintain their networks.
Certified Advisor: G&W Fondkommission
Note: This press release contains forward-looking statements. Actual results may differ materially from those projected or implied in such statements. Readers are cautioned not to place undue reliance on forward-looking information.
