Govt halts Ufone-Telenor rebranding to 'e&' over legal, governance concerns

The federal government has put on hold a proposed plan to rebrand the merged Ufone-Telenor company as "e&", amid legal and governance concerns over the removal of the word "Pakistan" from the telecom operator's corporate identity and questions over the Ufone board's authority to approve such a move, Business Recorder reported, citing sources.

The controversy has also reignited debate over the accountability of government-nominated directors on state-owned enterprises (SOEs), many of whom reportedly receive up to $5,000 per board meeting. 

The issue emerged after the Ufone board approved the proposed "e&" brand name for the merged entity. The board includes government nominees, among them a sitting PML-N senator and two federal secretaries.

The Ufone board's decision came even though the Pakistan Telecommunication Company Limited (PTCL) board had earlier deferred the same proposal.

According to sources, the Ufone board's approval triggered concern at the highest levels of government, prompting immediate intervention. The government is now considering putting the rebranding exercise on hold and may seek a legal opinion from the Law Division on whether the Ufone board has the authority to approve a corporate identity change for the merged company.

Officials said the central legal question is whether a subsidiary company's board can independently approve branding for a merged entity before all legal, regulatory and corporate formalities required under the merger framework are completed. 

Pending the Law Division's opinion, a final decision on the "e&" branding may be delayed, effectively suspending the exercise for now.

The episode has also stirred debate over governance standards at public-sector companies. 

Among the Ufone board's non-executive directors is Senator Anusha Rahman, who currently chairs the Senate Standing Committee on Commerce. Her presence, along with senior federal bureaucrats on the board, has intensified questions over whether adequate due diligence was carried out before the rebranding was approved.

However, Senator Anusha Rehman and Federal Minister for Information Technology and Telecommunications Shaza Fatima avoided comments on the matter. 

The proposed rebranding follows PTCL's acquisition of Telenor Pakistan and the subsequent integration of the two mobile operators, creating one of Pakistan's largest telecom companies. 

In a letter dated June 16, 2026, the Pakistan Telecommunication Authority (PTA) approved the brand name and directed the company to notify the Authority once amalgamation takes effect under applicable law, and before any commercial launch or marketing campaign for the "e&" brand. The regulator instructed PTML to implement the approved brand change strictly in line with the approval conditions.

In a subsequent letter dated July 2, the PTA reiterated its advice to PTML/Merge Co to notify the Authority upon effectuation of the amalgamation as per law, and prior to the commercial launch or campaign for the brand name.