New Delhi, May 2: UAE’s major telecom company, Etisalat, is currently reviewing its investments in Pakistan. There are speculations that Etisalat may exit from Pakistan Telecommunications Company Limited (PTCL).
According to a report by ‘Dawn’, the review is taking place amid increasing global economic uncertainty, geopolitical tensions in the region, and changing investment strategies among government-affiliated investors.
Etisalat’s plans are still in the preliminary investigation phase, and no final decision has been made yet. When approached for comments, PTCL informed ‘Dawn’ that its long-term business plan was recently approved by its board and shareholders. The company stated that it has not received any information regarding changes from its shareholders.
PTCL is a crucial company for Pakistan, although its ownership is mixed. The government and its entities hold approximately 62 percent of the shares, while 26 percent and management control belong to Etisalat, which has recently rebranded and initiated a reorganization. The remaining 12 percent of shares are held by private investors through the Pakistan Stock Exchange.
PTCL has been operating at a loss for several years, but it has started to show profits following the acquisition of Telenor Pakistan.
Recently, Islamabad returned nearly $3.5 billion to the UAE, which had been rolled over for several years to stabilize Pakistan’s foreign exchange reserves under IMF programs. Meanwhile, Saudi Arabia has increased its support to Pakistan by raising its deposits from $3 billion to $8 billion to meet IMF conditions. The IMF executive board meeting is scheduled for May 8, where the approval for the next tranche of $1.21 billion for Pakistan may be granted.
A senior official from the finance department told ‘Dawn’ that if UAE investors make changes to their portfolio, Pakistan has strong alternative options available. Interest from Saudi and Qatari investors could assist Pakistan in maintaining investment and economic stability.
My name is Ganpat Singh Choughan. I am an experienced content writer with 8 years of expertise in the field. Currently, I contribute to Udaipur Kiran & Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
