Pakistan state broadcaster’s debt crisis deepens amid costly cricket rights

Pakistan Television Corporation (PTVC), the country’s state-owned broadcaster, is grappling with a worsening financial crisis, according to an internal inquiry that links its mounting debts to long-standing structural weaknesses and large payments for international cricket rights, including the ICC Champions Trophy.

The report, obtained by Nukta, highlights how billions of rupees spent on sports and other obligations contributed to delays in salaries and pensions earlier this year.

The inquiry, initiated in June 2025 following recommendations from the National Assembly’s Standing Committee on Information and Broadcasting, found that PTVC’s liquidity position deteriorated sharply in January 2025 after spending roughly PKR1.5 billion on international sports broadcasting rights. These payments coincided with delays in disbursing monthly salaries and pensions to employees and retirees.

To meet immediate obligations, PTVC secured a PKR650 million term loan from Askari Bank in January and February 2025. However, total liabilities continued to climb, reaching approximately PKR8.5 billion, the report said.

A committee comprising officials from the Ministry of Information and Broadcasting and PTVC’s finance and engineering divisions examined cash flow statements, daily fund reports, and expenditure records for the 2024-25 financial year. The inquiry concluded that the crisis was not the result of any single individual but stemmed from decades of weak financial planning, administrative mismanagement, political interference, and market disruption.

The report identified a sharp decline in revenue as a central challenge. PTVC’s viewership has fallen amid competition from private television channels, digital platforms, and global streaming services such as YouTube and Netflix. Reliance on outdated programming formats and a limited digital presence has eroded advertising revenue, as marketers increasingly favor higher-rated private channels.

Employee costs were also highlighted as a major strain, with salaries and pensions accounting for more than 60 percent of the broadcaster’s budget. Rising pension obligations have been compounded by the absence of a dedicated pension fund, the report said.

Sports broadcasting rights were described as a significant financial burden. While the committee acknowledged the public interest value of events such as the ICC World Cups and Champions Trophy, it noted that billions of rupees spent on sports rights in the past two financial years severely weakened PTVC’s liquidity.

The inquiry also flagged substantial payments to state-linked entities, including PKR649 million over three years to Shalimar Recording and Broadcasting Company for transmission facilities, and PKR180 million to the Pakistan Broadcasting Corporation, with little direct revenue benefit to PTVC.

Recent reform measures were cited in the report, including staff reductions, salary cuts for top earners, removal of hundreds of ghost pensioners via biometric verification, and initiatives to generate revenue from digital platforms. Investments in high-definition transmission and renewable energy to cut costs were also acknowledged.

For long-term recovery, the committee recommended substantial government support, proposing an annual grant of at least PKR15 billion with periodic increases. It also suggested new legislation to enable alternative collection of television license fees and exploring outsourcing or public-private partnerships for PTV Sports.

The report concluded that without bold structural reforms, modernization and commercialization, PTVC is unlikely to regain financial stability or reclaim its role as Pakistan’s leading national broadcaster.