The ownership structure of Ufone, one of Pakistan’s leading telecom companies, remains shrouded in ambiguity. While Pakistan Telecommunication Company Limited (PTCL) has consistently claimed Ufone as part of the Etisalat group, official records indicate that the Government of Pakistan is still the majority shareholder.
Read More: Etisalat’s Control Over Ufone: A Closer Look at PTCL’s Financial Crisis
The Ownership Puzzle: Ufone was established in 2001 as a subsidiary of PTCL. Following PTCL’s privatization in 2006, the UAE-based Etisalat acquired management control of both PTCL and Ufone with a 26% stake for $2.6 billion. However, the deal did not transfer full ownership of Ufone to Etisalat.
Despite this, Ufone has routinely positioned itself as an Etisalat entity. A press release issued by the company on August 13, 2017, stated, “Ufone is an Etisalat Group company with its presence in all major cities of Pakistan.” Another release on December 19, 2024, reiterated, “Following PTCL’s privatization, Ufone became a part of the Etisalat group in 2006.” However, public records contradict this portrayal, showing that PTCL—majority-owned by the Government of Pakistan—retains near-total ownership of Ufone.
Conflicting Public Information: The contradictions don’t end with press releases. Ufone’s official website lists it as an Etisalat Group company, while the same site’s ‘Company Profile’ section states that Ufone is a “wholly owned subsidiary of PTCL.” A PTCL spokesperson clarified that both statements are technically correct: PTCL owns Ufone, but Etisalat controls its management.
Yet, a deeper dive into the Securities and Exchange Commission of Pakistan (SECP) records from May 2024 shows that PTCL holds nearly 100% of Ufone’s 6.5 billion shares. Out of these, only nine shares are distributed among board members, five of whom are affiliated with Etisalat.
Lack of Transparency and Financial Burden: The blurred ownership lines have had significant financial implications. The ongoing losses at Ufone have dragged the PTCL Group into a negative financial position, with a reported Rs14.39 billion deficit in 2024. The lack of transparency in Ufone’s financial reporting—potentially due to its perceived status as an Etisalat company—has kept the public in the dark regarding its losses.
Moreover, the Ministry of Information Technology and Telecommunication (MoITT) has done little to clarify the company’s actual ownership structure. While PTCL’s board is chaired by Azfar Manzoor, Special Secretary at MoITT, Ufone’s board details remain undisclosed on its website. The last known government official on the Ufone board, Aisha Humera, was transferred to the Ministry of Climate Change in September 2024, further weakening state oversight.
Accountability and Questions Unanswered: Given Ufone’s financial struggles, concerns arise about the government’s role in safeguarding its assets. The responsibility of MoITT-nominated board members was to protect Pakistan’s financial interests in Ufone, yet the company’s financial health continues to deteriorate.
Despite multiple queries, Senator Anusha Rehman, a member of the Senate Standing Committee on IT & Telecom, did not provide answers regarding Ufone’s persistent losses. Meanwhile, the absence of clear documentation at the Pakistan Stock Exchange further complicates the ownership narrative.
Conclusion: Who Really Owns Ufone?: The situation raises critical questions: If PTCL, and by extension, the Government of Pakistan, holds nearly 100% of Ufone’s shares, why is Ufone continually presented as part of the Etisalat Group? Why is its financial performance not disclosed transparently? And most importantly, who is truly responsible for Ufone’s ongoing financial decline?
The lack of clarity in Ufone’s ownership and financial management demands urgent regulatory scrutiny. As Pakistan faces economic challenges, ensuring transparency in the ownership and financial operations of key state assets like Ufone is essential to protect public interest.
