PTCL denies report on Etisalat possible exit from Pakistan

ISLAMABAD: The Pakistan Telecommunication Company Ltd (PTCL) on Thursday rejected media reports suggesting that its UAE-based majority stakeholder Etisalat was considering exiting the Pakistani market, saying there had been “no discussion” on such a move.

The clarification came after a report in Dawn said Etisalat was in the early stages of reviewing its exposure to Pakistan’s telecom sector as part of a broader portfolio optimisation exercise that could potentially lead to an exit.

PTCL Chief Executive Officer Hatem Bamatraf said that there was no basis for the speculation.

“We are going to issue a statement on this. There is no such thing,” he said during a webinar, responding to a question about the reported review.

He said that any such decision would rest with shareholders, but stressed that Etisalat — PTCL’s managing shareholder — was not engaged in any exit-related discussions.

“It is clear to me there is no such conversation happening at Etisalat,” he said, adding that coordination between PTCL and its shareholder remained ongoing on strategy, budgets and performance.

“We are in close coordination about the strategy, the budget, the business plan, the performance of the company,” he said. “There was no such kind of discussion about these things.”

The denial follows the Dawn report which said the UAE telecom group was reviewing its exposure to Pakistan amid broader global portfolio adjustments, citing diplomatic and financial sources. The report said the review was still at a preliminary stage and no decision had been taken.

Etisalat International Pakistan acquired management control of PTCL in 2006 under a $2.6 billion agreement for a 26 per cent stake in the company, marking one of the largest foreign investments in Pakistan’s telecom sector.

The group has since been engaged in a long-running dispute with Pakistan over the privatization deal, including a withheld payment of around $800 million linked to unresolved property transfers, a matter Islamabad disputes.

Earlier this year, Pakistan’s deputy prime minister held talks with senior Etisalat officials to discuss the company’s stake and broader investment prospects, reflecting continued engagement between the two sides.

Despite periodic tensions over financial and contractual issues, both countries maintain strong economic ties. The United Arab Emirates has provided significant financial support to Pakistan in recent years through deposits, loans and investment commitments.

Pakistan recently repaid $3.5 billion to the UAE as part of its external debt obligations, while Saudi Arabia has expanded its financial support to help stabilise Pakistan’s foreign reserves.

Officials familiar with the matter said any reassessment of foreign investments by Gulf stakeholders would be part of broader global portfolio management strategies rather than Pakistan-specific concerns, adding that Islamabad continued to view GCC capital as a key source of external financing.