Etisalat, the UAE telecom operator now branded as e&, is reviewing its exposure to Pakistan’s telecom sector as part of a broader portfolio optimisation exercise that could eventually lead to an exit from Pakistan Telecommunication Co., according to a report by Dawn.
The review is still at a preliminary assessment stage and no final decision has been taken, the report said, citing sources in diplomatic and financial circles. The people said the exercise was being driven by global macroeconomic uncertainty, regional geopolitical tensions and changing capital allocation strategies among sovereign-linked Gulf investors, rather than any Pakistan-specific trigger.
The report described the move as part of a wider internal review across multiple jurisdictions and said it should not be read as a sign of imminent divestment.
There was no official confirmation from UAE stakeholders or Pakistan’s finance authorities. PTCL said it was not aware of any plan by shareholders to change their position at this stage, adding that its long-term business plan had recently been approved by the board and shareholders.
PTCL remains strategically important for Pakistan. The government and its entities hold about 62% of the company, while e& controls 26% along with management rights. The remaining roughly 12% is held by private investors through the Pakistan Stock Exchange.
The report comes as Pakistan recalibrates its Gulf financing relationships. Islamabad recently repaid about $3.5 billion to the UAE that had long been rolled over to support foreign exchange reserves, while Saudi Arabia has increased its safe deposits in Pakistan by $3 billion to $8 billion to help plug external financing gaps tied to IMF requirements. Pakistan is also awaiting board approval for another $1.21 billion IMF disbursement on May 8.
A senior Finance Division official said that even if UAE stakeholders opted for portfolio rebalancing, Pakistan had downside protection through alternative Gulf capital flows, including potential Saudi and Qatari investor interest.
Etisalat acquired 26% of PTCL with management control in 2005 through a $2.6 billion deal, but paid only about $1.8 billion and withheld the remaining $800 million over a long-running dispute regarding the transfer of PTCL properties. Past talks over deductions linked to more than 100 non-transferable properties and other dues did not produce a settlement.
Diplomatic sources cited in the report said Pakistan-UAE economic cooperation remained intact and that the current review was consistent with global investment management practices.
