PTCL’s UAE shareholder reviews stake as part of global portfolio reassessment

A UAE-based telecom group is reviewing its exposure to Pakistan’s telecom sector as part of a broader portfolio optimisation process that could potentially include its stake in Pakistan Telecommunication Company Ltd (PTCL).

Dawn reported, citing sources in diplomatic and financial circles, that the assessment remains at an early stage, with no decision taken on a possible exit. Officials indicated the review is linked to global economic conditions, regional geopolitical developments and evolving capital allocation strategies.

PTCL said it was not aware of any plan by its shareholders to change their position and noted that its long-term business plan had recently been approved by the board and shareholders.

PTCL remains a key entity in Pakistan’s telecom sector, with the government and its entities holding around 62% stake, while 26% shares and management control are held by the UAE-based group, now rebranded as e&. The remaining 12% shares are listed on the Pakistan Stock Exchange.

The company has faced losses in recent years but reported improvement following its acquisition of Telenor Pakistan.

Officials said any potential portfolio adjustment by UAE investors would be part of a wider reassessment across multiple markets and not specific to Pakistan. They added that such reviews are typically driven by risk-return considerations rather than country-specific concerns.

A senior Finance Division official said Pakistan retains alternative investment avenues, including interest from other Gulf countries, which could support continuity in the sector if required.

The development comes amid ongoing financial flows between Pakistan and Gulf partners, including recent repayments and deposits linked to external financing arrangements.

Etisalat acquired a 26% stake with management control in PTCL in 2005 through a $2.6 billion bid, but withheld around $800 million over unresolved issues related to the transfer of properties. Discussions on the matter have continued without a final resolution.