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–UAE telecom giant assesses Pakistan exposure, no final decision yet
BeNewz Report
ISLAMABAD: The Etisalat is reviewing its investment in Pakistan Telecommunication Company Limited as part of a broader global portfolio optimisation strategy, though no final decision on exit has been taken so far, officials and industry sources said, quoting a leading daily newspaper.
Sources in diplomatic and financial circles said the UAE-based telecom group’s assessment remains at an early stage and is not specific to Pakistan alone. The review is driven by global macroeconomic uncertainty, evolving capital allocation strategies, and regional geopolitical developments affecting sovereign-linked investors.
“This is part of a wider internal review across multiple jurisdictions and should not be seen as an immediate divestment signal,” an official familiar with the matter said, adding that such evaluations are standard practice among Gulf investors managing diversified portfolios.
There has been no official confirmation from Etisalat or Pakistan’s Finance Division regarding any potential stake sale. In a brief response, Pakistan Telecommunication Company Limited said it was unaware of any change in shareholder plans, noting that its long-term business strategy had recently been approved by the board.
PTCL remains a strategically important entity in Pakistan’s telecom sector. The government retains around 62% ownership, while Etisalat holds 26% shares along with management control. The remaining stake is held by public investors through the Pakistan Stock Exchange.
The telecom sector in Pakistan has faced structural challenges in recent years, including declining average revenue per user, rising operational costs, and currency depreciation. According to Pakistan Telecommunication Authority data, the country has over 190 million mobile subscribers, yet revenue growth has remained constrained due to pricing pressures and regulatory costs.
Pakistan Telecommunication Company Limited itself has reported losses in recent years, before returning to profitability following its acquisition of Telenor Pakistan assets [verify], a move aimed at strengthening its market position in a highly competitive landscape.
The potential review also comes amid broader financial flows between Pakistan and Gulf countries. Islamabad recently repaid around $3.5bn to the UAE, which had been rolled over to support foreign exchange reserves under multiple International Monetary Fund programmes. Meanwhile, Saudi Arabia has increased its deposits in Pakistan to $8bn, highlighting continued Gulf support for the country’s external financing needs.
Finance Ministry officials said that even if UAE investors rebalance their portfolios, Pakistan has alternative avenues for capital inflows. Interest from Saudi and Qatari investors could provide stability and continuity in key sectors, including telecommunications and infrastructure.
Analysts say the review reflects a broader shift among Gulf economies toward “strategic autonomy,” with increased focus on domestic investments and US dollar-denominated reserves. This aligns with recent policy signals from Abu Dhabi, including reassessments of its role in global economic groupings and multilateral commitments.
Etisalat acquired a 26% stake in Pakistan Telecommunication Company Limited in 2005 for $2.6bn, securing management control. However, around $800m of the agreed amount remains unpaid due to unresolved issues related to the transfer of certain properties, a dispute that has persisted for years without a final settlement.
Despite these challenges, officials emphasised that Pakistan-UAE economic relations remain stable. Any decision regarding Pakistan Telecommunication Company Limited will likely be guided by commercial considerations rather than country-specific concerns, with stakeholders continuing to monitor developments in the telecom sector closely.
