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

Trans World Associates (Pvt.) 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 and a landing partner for 2Africa subsea cable system, one of the largest undersea cable projects globally, ensuring enhanced global connectivity and network resilience. The Company owns and manages its own landing station 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. 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 broadly supportive: total telecom subscriptions reached 210mln by July 2026 at ~83.35% tele-density, sector revenue rose to PKR 1,075bln in CY25 (+12.3% YoY) on ARPU-led growth, and mobile data usage grew to ~14,153 petabytes (+8.7% YoY), sustaining demand for the international and domestic bandwidth capacity TWA supplies; Pakistan’s installed international bandwidth capacity stood at ~17.2Tbps by mid-2025, of which ~13.0Tbps was activated. 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 data centers. 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 CY25, TWA’s revenue grew to ~PKR 15,713mln (CY24: ~PKR 13,311mln), an increase of 18.0%, driven primarily by the Carrier, Wholesale, and International Business segments. 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. The Company’s financial risk profile is considered adequate with modest coverages, adequate cashflows and working capital cycle. Capital structure is leveraged, with borrowings primarily consisting of short- and long-term loans to fund working capital, network, and capacity expansion.
The ratings are dependent on the Company’s ability to maintain its leadership position in niche markets amid an increasingly capital-intensive operating 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 in Pakistan as a private limited company on October 01, 1980. Board consists of eight directors. Mr. Junaid Iqbal is the CEO, while Mr. Saad Muzaffar Waraich is the President of the Company and Mr. Asif Inam is the Deputy CEO & COO, they all have a strong telecom industry profile.