New Delhi: Leading UAE telecom major Etisalat is reviewing its investment in Pakistan, which could lead to its exit from Pakistan Telecommunication Company Ltd (PTCL), according to a report in the local media.
Insiders say Etisalat had indicated that the review is driven by a combination of global macroeconomic uncertainty, regional geopolitical tensions, and evolving capital allocation strategies among sovereign-linked investors, the report in the Dawn said.
Etisalat’s plans are still at the preliminary assessment stage, with no final decision taken as yet, the report stated.
Asked for comment, PTCL told Dawn its long-term business plan had recently been approved by its board and shareholders. “PTCL is not aware about shareholders’ plan of any change at this stage,” the company said in its statement.
For Pakistan, PTCL remains a strategically important entity, despite its mixed ownership — the government and its entities still hold around 62 per cent stake in it, although 26 per cent shares and management control are in the hands of the Gulf telecom giant, which recently rebranded and is in the process of corporate restructuring. The remaining 12 pc shares are held by private investors through the Pakistan Stock Exchange.
PTCL has been facing continuous losses over the past couple of years, turning a profit only recently following its acquisition of Telenor Pakistan.
Just recently, Islamabad repaid about $3.5bn to the UAE, which had been rolling over these deposits for years to shore up Pakistan’s foreign exchange reserve target under multiple IMF programmes.
Concurrently, Saudi Arabia has increased its role in maintaining Pakistan’s reserves by enhancing the volume of its safe deposits in Pakistan by $3bn to $8bn, to fill the financing gap under IMF requirements. Meanwhile, the IMF’s executive board is set to meet on May 8 to clear the disbursement of another $1.21bn tranche for Pakistan.
A senior Finance Division official told Dawn that in the event of any portfolio rebalancing by UAE stakeholders, Pakistan retained credible downside protection through alternative GCC capital flows, noting that strategic interest from Saudi and Qatari investors provided a viable alternative pathway to ensure continuity of investment, operational stability, and long-term sectoral growth.
Sources referred to the UAE’s recent measured rebalancing toward US dollar reserves and domestic market commitments amid global volatility, saying that this reflects standard focus on hard-currency buffers, balance-of-payment stability, and capital efficiency, the report added.
(IANS)
