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By Malik Shahzad Aslam :
A reported internal review by UAE telecom giant e& of its investment in Pakistan has sparked fresh uncertainty over the future of the country’s telecom landscape, even as key operators enter a period of expansion and recovery.
According to a report by Dawn, the company which holds a 26% stake and management control in Pakistan Telecommunication Company Limited is reassessing its exposure as part of a broader global portfolio review. Officials familiar with the matter described the process as being at an early stage, with no final decision taken.
PTCL said it was unaware of any plans by its shareholder to alter its position, but the timing of the review has drawn attention. The company has recently returned to profitability after several years of losses and is preparing for a commercial 5G launch, while also moving ahead with consolidation in the mobile sector.
Analysts say this contrast highlights that the review may be driven less by Pakistan-specific performance and more by wider strategic shifts among Gulf investors. Sources cited in the report point to global economic uncertainty, regional geopolitical tensions and evolving capital allocation priorities as key factors behind the reassessment.
The development also revives a long-standing dispute between the Pakistani government and Etisalat dating back to the 2005 privatisation of PTCL. Under the deal, Etisalat agreed to pay $2.6bn for its stake but withheld around $800m over unresolved issues related to the transfer of certain properties. The disagreement has remained unresolved for nearly two decades and could complicate any potential exit.
The review comes amid broader changes in regional financial dynamics. Pakistan has recently repaid billions of dollars in deposits to the UAE, while Saudi Arabia has increased its financial support, signalling a shift in the balance of external backing. At the same time, Gulf states are reassessing international investments as they adapt to a more complex geopolitical and economic environment.
If Etisalat were to reduce or exit its stake, the implications would extend beyond a simple share sale. Its position combines minority ownership with operational control, meaning any departure would require a new strategic partner or a restructuring of management within PTCL. The Pakistani government, which holds a majority stake, would need to ensure continuity in leadership at a time when the sector is undergoing major changes.
Potential interest from regional players, including firms linked to Saudi Arabia and Qatar, has been suggested as a possible alternative pathway, though no formal proposals have been announced.
The uncertainty comes at a critical juncture for Pakistan’s telecom industry. Alongside PTCL’s turnaround, the sector is seeing consolidation and preparing for next-generation services, with competition intensifying and demand for data continuing to grow.
Experts say that while a change in ownership is not imminent, even the prospect of a shift introduces questions about stability, investment and long-term strategy. They note that maintaining momentum in areas such as network expansion and 5G deployment will depend heavily on clear leadership and sustained capital investment.
For now, officials stress that no decision has been made. However, the review itself has underscored how closely Pakistan’s telecom sector is tied to global investment trends — and how shifts in those dynamics can quickly ripple through one of the country’s most critical industries.
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