The Pakistan Telecommunication Company Ltd (PTCL) firmly dismissed media speculation on Thursday that its majority stakeholder, UAE-based Etisalat, was contemplating an exit from the Pakistani telecom sector. The company clarified that no such discussions have taken place.
This statement followed a report suggesting that Etisalat was in the initial phases of evaluating its involvement in Pakistan’s telecommunications market as part of a wider portfolio optimization strategy, which could possibly lead to a withdrawal.
PTCL’s Chief Executive Officer, Hatem Bamatraf, addressed the rumors during a webinar, emphasizing that the speculation was unfounded. He noted that any decision regarding Etisalat’s stake would be made by shareholders, but stressed that Etisalat was not engaged in any conversations about exiting the market.
“There is no such conversation happening at Etisalat,” Bamatraf said, highlighting the ongoing collaboration between PTCL and its managing shareholder on matters related to strategy, budgeting, and company performance. He reiterated that no discussions about an exit had occurred.
The denial comes after reports indicated that Etisalat was reviewing its exposure to Pakistan amid broader global portfolio adjustments, citing diplomatic and financial sources. The review was described as preliminary, with no final decisions made.
Etisalat International Pakistan took management control of PTCL in 2006 through a $2.6 billion deal acquiring a 26 percent stake, representing one of the largest foreign investments in Pakistan’s telecom industry. Since then, the group has been involved in a prolonged dispute with Pakistan over the privatization agreement, including a withheld payment of approximately $800 million related to unresolved property transfers, a claim contested by Islamabad.
Earlier this year, Pakistan’s deputy prime minister engaged in discussions with senior Etisalat officials regarding the company’s stake and future investment opportunities, underscoring ongoing dialogue between the parties.
Despite occasional tensions over financial and contractual matters, economic relations between Pakistan and the UAE remain robust. The UAE has extended substantial financial assistance to Pakistan in recent years through deposits, loans, and investment commitments.
Pakistan recently repaid $3.5 billion to the UAE as part of its external debt obligations, while Saudi Arabia has also increased its financial support to help stabilize Pakistan’s foreign reserves.
Officials familiar with the situation noted that any reassessment of Gulf Cooperation Council (GCC) investments would be part of broader global portfolio management rather than specific concerns about Pakistan. Islamabad continues to regard GCC capital as a vital source of external financing.
