New Delhi, May 1: The UAE’s prominent telecom company, Etisalat, is currently reviewing its investments in Pakistan. There are speculations that Etisalat may exit its stake in Pakistan Telecommunications Company Limited (PTCL).
According to a report by Dawn, Etisalat stated that this review is prompted by increasing global economic uncertainty, geopolitical tensions in the region, and changing investment strategies among government-linked investors.
Etisalat’s review is still in the preliminary stages, 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 added that it has not received any information regarding changes from its shareholders.
PTCL is a crucial entity for Pakistan, although its ownership is mixed. The government and its institutions hold approximately 62 percent of the shares, while 26 percent of the shares and management control belong to Etisalat, which has recently rebranded and initiated a reorganization. The remaining 12 percent is 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 approximately $3.5 billion to the UAE, funds that had been rolled over for years to stabilize Pakistan’s foreign exchange reserves under various IMF programs.
Meanwhile, Saudi Arabia has also increased its support for Pakistan, raising its deposits from $3 billion to $8 billion to meet IMF conditions. The IMF’s executive board is set to meet on May 8, where it may approve the next tranche of $1.21 billion for Pakistan.
A senior finance department official told Dawn that if UAE investors make changes to their portfolio, Pakistan has other strong options available. Interest from Saudi and Qatari investors could help Pakistan maintain investment and economic stability.
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