ISLAMABAD: A major UAE telecom player is reassessing its long-held position
in Pakistan’s largest fixed-line operator.

Sources close to the matter indicate the review forms part of a wider
global portfolio adjustment.

This development comes at a sensitive time when PTCL has just turned the
corner financially.

The company reported a net profit of Rs3.1 billion in the first quarter of
2026. That marks a sharp reversal from a Rs4 billion loss in the same
period last year.

PTCL also announced plans for commercial 5G rollout starting May 2026. The
operator is pushing ahead with integration following its acquisition of
Telenor Pakistan operations.

Etisalat, now rebranded as e&, acquired a 26 percent stake along with
management control in PTCL back in 2005. The deal was valued at $2.6
billion and represented one of Pakistan’s landmark privatisation moves.

The government and its entities continue to hold approximately 62 percent
of the shares while the remaining 12 percent are publicly traded on the
Pakistan Stock Exchange.

Officials familiar with the situation stress that the current review does
not signal an immediate exit. Discussions remain at a preliminary stage
with no final decision taken.

Pakistan’s telecom sector has shown remarkable resilience despite global
economic headwinds. Mobile subscriptions crossed 190 million while data
consumption continues to surge across urban and rural areas.

PTCL’s recent acquisition of Telenor Pakistan is expected to create a
stronger second player in the mobile space once merged with Ufone. This
consolidation could deliver improved network efficiency and better services
to millions of users.

Experts point to Pakistan’s young population and rising digital demand as
key attractions for long-term investors. Fibre optic expansion and 4G
coverage have accelerated in recent years supported by both local and
foreign capital.

Alternative investors could step in if any stake becomes available.
Pakistan has already attracted new foreign firms in fintech and digital
services including digital banking initiatives backed by regional players.

The timing of the review coincides with ongoing bilateral efforts between
Pakistan and UAE to resolve legacy issues from the original privatisation
deal. Senior Pakistani officials have engaged with Etisalat leadership on
multiple occasions to strengthen economic ties.

Despite occasional challenges the partnership between Pakistani entities
and UAE investors has delivered substantial value over two decades. PTCL
under the current structure maintains critical national infrastructure that
supports both civilian and strategic communication needs.

Pakistan Armed Forces rely on robust telecom backbone for operational
readiness and the country’s defence communications benefit from PTCL’s
extensive fixed-line and data networks.

Any future ownership changes would be carefully evaluated to ensure
continuity of services and protection of national interests. Officials
express confidence that Pakistan’s improving macroeconomic indicators will
draw quality replacements if required.

Recent data shows PTCL Group achieved strong revenue growth in early 2026.
The operator is investing heavily in next-generation infrastructure
including expanded fibre-to-the-home services across major cities.

Market analysts note that Pakistan’s telecom market is projected to grow at
a compound annual rate exceeding 4 percent through the early 2030s. Rising
demand for digital financial services and e-commerce further boosts the
sector’s appeal.

The review by Etisalat has generated cautious optimism rather than alarm in
Islamabad circles. Stakeholders believe it opens doors for fresh capital
inflows aligned with Pakistan’s vision of a modern digital economy.

PTCL continues to serve as the backbone for internet service providers
nationwide. Its infrastructure supports everything from government
e-services to private sector cloud operations.

Defence experts highlight the strategic importance of maintaining reliable
domestic control over core communication assets. Any transition would
prioritise stability and technological advancement.

Pakistan’s overall foreign investment climate has shown positive movement
with new commitments in banking technology and renewable energy. Telecom
remains a priority area given its multiplier effect on other sectors.

As the review process unfolds questions linger about potential new entrants
from friendly countries. Gulf sovereign funds and Asian telecom operators
have previously shown interest in emerging markets like Pakistan.

The development underscores Pakistan’s maturing investment landscape where
global players continuously optimise portfolios while local fundamentals
keep improving.

What remains clear is PTCL’s operational momentum. The company’s return to
profitability and 5G ambitions signa