PACRA Maintains the Entity Ratings of Trans World Associates (Pvt.) Limited

Trans World Associates Private Limited (“The Company” or “TWA”) is the private sector entity in Pakistan and the only telecom operator that owns and operates a private submarine fiber optic cable system, a distinction that underscores its strategic role in the country’s digital infrastructure. In addition to its proprietary cable system, TWA is also a consortium partner in multiple international submarine cable projects, ensuring enhanced global connectivity and network resilience. The Company owns and manages its own landing stations in Pakistan, enabling direct access to international bandwidth. Through its bandwidth distribution and network, TWA delivers reliable connectivity to telecom operators, ISPs, and enterprises nationwide. In Pakistan, there are three submarine cable operators: PTCL, TWA, and Cybernet (Landing partner of PEACE cable system). These operators handle the internet traffic in Pakistan, delivering bandwidth to cellular mobile operators, ISPs, corporate organizations, and SMEs. The telecom industry in Pakistan is undergoing a structural transformation, driven by rapid digitization across both consumer and enterprise segments. This accelerating digital shift is creating new avenues for telecom operators to diversify beyond traditional connectivity services into data-centric and value-added offerings. Industry dynamics remain favorable, underpinned by rising internet penetration, expanding coverage in underserved and unserved regions, and growing adoption of digital solutions by enterprises. As per the Pakistan Telecommunication Authority (PTA) statistics, there are ~150mln broadband subscribers and ~27,897 petabytes data consumption was recorded during FY25, marking a growth of ~11% YoY. It is expected that aggregate bandwidth demand will continue to rise, fueling revenue growth opportunities for operators. The surge in cloud services, artificial intelligence applications, and fintech adoption further supports a structurally high demand outlook for data capacity. To cater to this rising demand, TWA is pursuing multiple initiatives, including continuous expansion of its existing fiber optic capacity, while simultaneously undertaking significant enhancements through long-haul network upgradation and expansion into cutting-edge technology. These initiatives are poised to strengthen Pakistan’s domestic network backbone, improve service redundancy, and enhance international connectivity, thereby positioning TWA as a critical enabler of the country’s digital ecosystem. During CY24, the Company’s topline clocked in at ~PKR 13,311mln, registering an increase of 25.4% (CY22: ~PKR 10,618mln). The Carrier, International & Wholesale business segments were the main revenue drivers while Enterprise segment also showed notable growth with new product offerings including managed services. The board of TWA is more of an advisory nature as all members are well-experienced and possess technical expertise along with strapping industry-specific experience. The Company has implemented a robust internal control system across the organization which is complemented by top-notch IT, business insight & intelligence, and financial reporting solutions. Going forward, TWA is actively diversifying its revenue streams and strengthening its market position. The Company is set to serve as a landing partner for the upcoming 2Africa subsea cable system, one of the largest undersea cable projects globally. The Company’s financial risk profile is considered adequate with modest coverages, adequate cash flows, and working capital cycle. Capital structure is leveraged, with borrowings primarily consisting of short- and long-term loans for working capital, network, and capacity expansion.
The ratings are dependent on the Company’s ability to maintain its leadership position in niche markets amid a dynamic environment. Consistent revenue growth, improved margins and coverages, and adherence to prudent financial management, as outlined in financial projections, remain critical. As the capital structure becomes leveraged, maintenance of sound financial discipline is imperative to hold.

About the Entity
TWA, incorporated as a private limited company in Pakistan on October 1, 1980, has a seven-member board. Mr. Junaid Iqbal is the CEO and Mr. Saad Muzaffar Waraich the President; both have strong telecom industry profiles.