Is Etisalat Planning to Exit Pakistan? Major Development Emerges Over PTCL Shares. Reports have surfaced that a leading Middle Eastern business group is reviewing its investments in Pakistan’s telecom sector, raising the possibility of a future exit from Pakistan Telecommunication Company Limited (PTCL).
Read More: PTCL Applies for Telenor-Ufone Merger Clearance
According to sources, the UAE-based telecom giant Etisalat (e&) is currently reassessing its global investment portfolio and capital allocation strategy, under which assets in multiple countries are being reviewed. However, no final decision has been made regarding Pakistan so far.
Diplomatic and financial circles say this exercise is not limited to Pakistan. Gulf investors are evaluating investments across several jurisdictions, meaning it would be premature to describe the move as an immediate withdrawal from Pakistan.
Meanwhile, PTCL stated that it is not aware of any change in plans by its shareholders at this stage. The company added that its long-term business plan was recently approved by both the board and shareholders.
Current Ownership Structure of PTCL
At present, the Government of Pakistan and its entities hold around 62 percent shares in PTCL, while 26 percent shares along with management control remain with Etisalat. The remaining 12 percent shares are owned by private investors through the Pakistan Stock Exchange (PSX).
Etisalat acquired PTCL in 2005 through a $2.6 billion bid for a 26 percent stake and management control. However, due to disputes over property transfers, the company did not complete the full payment. Reports suggest nearly $800 million is still outstanding.
Improvement After Telenor Pakistan Acquisition
PTCL had faced financial pressure in recent years, but its position improved after acquiring Telenor Pakistan, helping the company return to profitability in the recent period.
What Could It Mean for Pakistan?
Experts believe that if Etisalat reduces its stake or decides to exit, it could open doors for new investors in Pakistan’s telecom sector. Saudi Arabia, Qatar, and other Gulf countries have already shown interest in Pakistan, which could create opportunities for fresh strategic partnerships.
Pakistan-UAE Economic Ties Remain Strong
Sources stressed that Pakistan and the UAE continue to maintain strong economic relations, and the current review appears to be part of global investment management practices rather than any sign of strained ties.
It is worth noting that Pakistan recently repaid around $3.5 billion to the UAE, while Saudi Arabia has increased its financial support to strengthen Pakistan’s foreign exchange reserves.
Analysts’ View
Economic analysts say that if the government moves quickly with privatization reforms, regulatory improvements, and investor-friendly policies, any such transition could be turned into a positive opportunity for Pakistan’s telecom and digital economy.
