Webdesk: Pakistan Telecommunication Company Limited (PTCL) will appear before the Competition Commission of Pakistan (CCP) today in Islamabad to present its case for the long-delayed PTCL-Telenor merger. The company plans to invest $1 billion in the proposed deal and is seeking regulatory approval to move forward with the merger, which aims to consolidate market share and expand its telecom footprint.
According to PTCL officials, the company has submitted the investment proposal to the CCP, but the commission has raised several questions about the investment details and timeline. PTCL representatives are expected to respond to these concerns during today’s hearing.
The PTCL-Telenor merger request was originally filed on February 29, 2024. Nonetheless, because of documentation challenges and legal barriers the process became delayed. On March 6 , PTCL re-submitted corrected documents. In response to objections posed by the Pakistan Telecommunication Authority (PTA), PTCL contested such notices in the Sindh High Court.
At the same time, the National Assembly’s Standing Committee on Information Technology expressed dissatisfaction over statements given by PTCL and warned the company against selling valuable state-owned land.
This issue is linked to an old dispute between the Government of Pakistan and Etisalat, the UAE-based company that holds the majority stake in PTCL. Under the privatisation agreement, Etisalat was to pay $640 million, which has not yet been paid.
In its half-yearly report for fiscal year 2025, from July to December, the Ministry of Finance reported that PTCL suffered a loss of Rs7.2 billion during the period. This brings the company’s total losses to Rs43.6 billion. PTCL is now ranked 7th among the top loss-making state-owned enterprises, up from 10th place previously.
The finance ministry has expressed concerns over the planned merger. It warned that if not handled properly, the deal could further weaken PTCL’s already fragile financial condition.
The report also noted that the PTCL-Telenor merger may affect the company’s ability to invest in future digital development and other key sectors. Additionally, PTCL’s outstanding pension liabilities were reported at Rs42.84 billion.
PTCL had posted a net profit of Rs20.78 billion in fiscal year 2005–06, the year when its management was handed over to Etisalat. Etisalat currently owns 26 per cent of the company’s shares. The Government of Pakistan still holds 62 per cent, while the remaining 12 per cent are traded on the stock exchange.
The CCP is now reviewing PTCL’s investment plan and its potential impact on market competition. The final decision on the PTCL-Telenor merger will depend on whether PTCL can successfully address the regulatory, legal, and financial concerns raised by the authorities.
The PTCL–Telenor merger has been delayed to H2 2025 due to pending regulatory approvals, according to Telenor Group’s Q1 2025 report.
— TechJuice (@TechJuicePk) May 7, 2025
Originally slated for H1 2025, the deal is still awaiting green lights from authorities.#PTCL #Telenor #PakistanTelecom #Mergers pic.twitter.com/2GU5HzRQXG
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