The government has intervened to halt a controversial proposal to rebrand the merged Ufone-Telenor entity under the global “e&” brand, amid mounting legal and governance concerns over the removal of the word “Pakistan” from the telecom operator’s corporate identity and questions over whether the Ufone board had the authority to approve such a move in the first place.
The intervention came after the Ufone board — which includes a sitting PML-N senator and two federal secretaries among its government-nominated directors — approved the proposed “e&” brand name for the merged entity, even as the Pakistan Telecommunication Company Limited (PTCL) board had earlier deferred the same proposal. The decision is said to have triggered alarm at the highest levels of government, prompting an immediate review.
Officials are now considering seeking an opinion from the Law Division on whether the board of a subsidiary company can independently approve the branding of a merged entity before all legal, regulatory and corporate formalities under the merger framework have been completed. Pending that opinion, the branding exercise has effectively been suspended.
The controversy has also reignited scrutiny of governance standards in state-owned enterprises, particularly the accountability of government-nominated directors, many of whom reportedly receive up to $5,000 per board meeting. Critics argue that board members entrusted with oversight of strategic state assets must ensure decisions comply with the law, corporate governance principles and the national interest.
The proposed identity change follows PTCL’s acquisition of Telenor Pakistan and the subsequent integration of the two mobile operators, creating one of the country’s largest telecom companies. However, the move to replace the long-established Ufone identity with the global “e&” brand has raised unease within government circles over the disappearance of the word “Pakistan” from the corporate identity of a strategically significant telecom operator.
Sources said the matter may ultimately require federal government approval, particularly because e& has liabilities of around $800 million linked to Pakistan. The federal government holds a 67 percent stake in the Ufone-Telenor MergCo, giving it a decisive say in the outcome.
The Pakistan Telecommunication Authority (PTA), in a letter dated June 16, 2026, approved the brand name and directed the company to notify the Authority upon the effectuation of amalgamation under applicable law and before any commercial launch or marketing campaign for the “e&” brand. In a subsequent letter on July 2, the PTA reiterated that the company must notify the Authority upon the legal completion of the amalgamation and prior to any commercial launch or campaign.
