Pakistan’s telecom sector is bracing for potential upheaval as Etisalat, the UAE’s leading telecom firm, scrutinizes its foothold in the volatile market. Whispers of a complete withdrawal from PTCL are gaining traction, driven by macroeconomic headwinds and regional instability.
The company’s statement highlights a perfect storm: worldwide economic volatility, geopolitical frictions in the region, and evolving priorities for state-affiliated investors. Currently, the assessment is exploratory, leaving room for various outcomes.
PTCL stands as a vital player with government holding a dominant 62% share, Etisalat commanding 26% with operational reins, and 12% in private hands. Long mired in red ink, PTCL posted profits post its Telenor takeover, alongside a management overhaul and brand refresh under Etisalat’s influence.
PTCL’s response was steadfast: recent board approval of a multi-year strategy, with no intimation of shareholder shifts. Meanwhile, Pakistan navigates financial tightropes. UAE’s $3.5 billion deposit repatriation marks a policy pivot, while Saudi infusions hit $8 billion. IMF’s next $1.21 billion could be greenlit soon.
Senior officials assure that robust options from Gulf partners like Saudi and Qatar stand ready, mitigating risks and sustaining investment inflows crucial for economic resilience.
