The Pakistan Telecommunication Company Limited (PTCL) on Thursday denied media reports suggesting that UAE telecom giant Etisalat was considering exiting the Pakistani market, with the company's chief executive stating there had been no discussion on such a move.
Background of the Reports
The clarification came after a report in Pakistan's English-language newspaper Dawn claimed that Etisalat was in the early stages of reviewing its exposure to the country's telecom sector. The review was reportedly part of a broader portfolio optimization exercise that could potentially lead to its exit from Pakistan.
PTCL CEO's Response
During a webinar, PTCL Chief Executive Officer Hatem Bamatraf addressed the issue in response to a question from Arab News about Etisalat mulling an exit from the country. "We are going to issue a statement on this. There is no such thing," Bamatraf said. He noted that while it was a question for shareholders rather than PTCL, he was clear that no such conversation was happening at Etisalat, which serves as PTCL's managing entity.
"In fact, we are in close coordination about the strategy, the budget, the business plan, the performance of the company, etc.," he continued. "We are not seeing any change of behavior or there was no such kind of discussion about these things."
Historical Context
Etisalat International Pakistan took over management control of PTCL in April 2006 as part of a $2.6 billion agreement to acquire a 26 percent stake in the company. In January, Pakistan's Deputy Prime Minister Ishaq Dar met with top Etisalat officials to discuss its stake in PTCL and other investment prospects. This meeting occurred against the backdrop of a long-running dispute over the privatization of PTCL.
The UAE-based telecom group has withheld a final payment of approximately $800 million related to its 2005 acquisition of a 26 percent stake in PTCL, citing delays in the transfer of properties included in the deal. This position is disputed by Pakistan.
Broader Economic Ties
Pakistan and the UAE maintain close political and economic ties, with Abu Dhabi providing critical financial support to Islamabad in recent years through deposits, loans, and investment commitments. Earlier this month, Pakistan repaid $3.5 billion to the UAE as part of its external debt obligations. The amount had been disbursed in three phases during the late 1990s, 2018, and 2023, and was scheduled to be fully repaid by the end of this month.
