The Senate Standing Committee on IT and Telecom turned its spotlight on Ufone, the only state-influenced telecom operator in Pakistan, raising questions about government interference, persistent losses, and a deteriorating quality of service.
Senator Humayun Mohmand argued that Ufone’s weak financial position is a direct result of lingering government influence: “Every sector in Pakistan has cartelization, but Ufone is still suffering because of government interference.”
However, Senator Afnanullah countered: “Ufone’s entire management is private now. There is no direct government involvement.”
The PTA chairman confirmed that Ufone is the only telecom company currently running in losses and highlighted spectrum shortages as the root cause of poor service quality. “The quality issue will persist until spectrum is auctioned. PTA is fully prepared for spectrum auction, but court cases have delayed the process for over 18 months,” he told the committee.
The Secretary IT added that Pakistan is using 274 MHz of spectrum, but capacity issues remain the main bottleneck. Senators pressed for clarity on who was responsible for litigation delaying the auction.
Meanwhile, the pending Ufone-Telenor merger, which has been delayed for 18 months, further clouds the company’s future. The PTA chairman revealed that even during a recent meeting with the Prime Minister, he urged the government to expedite spectrum auctions to stabilize the sector.
The Senate committee noted that while Ufone struggles financially, it remains crucial to maintaining competition in Pakistan’s telecom market — and warned that further delays in spectrum allocation could push the operator deeper into crisis.
