IMF seeks clarification on UAE’s $1 billion telecom investment linked to PTCL merger

ISLAMABAD: The International Monetary Fund (IMF) has sought official information from Pakistan regarding a reported $1 billion investment commitment by the UAE-based telecom company e& (formerly known as Etisalat) in the nation’s telecommunications sector, according to sources cited by Nukta.

This informal pledge is associated with the proposed merger of Pakistan Telecommunication Company Limited (PTCL) and Telenor Pakistan, raising concerns from the global financial institution during Pakistan’s ongoing discussions for economic assistance.

Senior officials from the Pakistan Telecommunication Authority (PTA), the Ministry of Information Technology and Telecom, and the Competition Commission of Pakistan (CCP) are scheduled to provide updates to the IMF mission this week. The merger, which aims to consolidate two significant entities in Pakistan’s telecom industry, is still under review by the CCP.

Recently, the CCP communicated to PTCL referencing Section 11(10) of the Competition Act of 2010, which addresses mergers that may impact market competition. The law allows for approval if a merger is found to enhance efficiency or avert the collapse of a financially troubled company; however, the CCP has yet to reach a final decision.

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Sources indicate that e&, which maintains management control of PTCL, has informally committed to a $1 billion investment over the next three to five years, contingent on the merger’s approval. This investment aligns with the company’s strategy to bolster its presence in Pakistan’s rapidly growing telecom and digital infrastructure sectors.

A source noted, “The PTCL group and CCP have been in communication for months regarding the merger.” The holdup has led to involvement from the Special Investment Facilitation Council (SIFC), which is focused on expediting foreign investment in critical sectors.

According to a CCP spokesperson, “The Commission operates as a quasi-judicial entity and evaluates mergers under Section 11 of the Competition Act. Once the review is completed, a formal decision will be documented and made available on the Commission’s website. We refrain from commenting on ongoing assessments.”

PTCL opted not to provide any comments, while the Finance Ministry neither confirmed nor denied the IMF’s request for details on the situation.