Etisalat is reviewing its exposure to Pakistan’s telecom sector as part of a broader portfolio optimisation strategy. This comes at a time when PTCL has posted its first net profit in over four years, raising questions about Etisalat’s motivations.
According to sources, “This is part of a wider internal review being undertaken by Gulf investors across multiple jurisdictions. It is not specific to Pakistan, nor is it indicative of any immediate divestment decision.” Currently, Etisalat holds 26% of PTCL shares, while the Pakistani government retains 62%.
PTCL’s recent success follows its acquisition of Telenor Pakistan. The company’s management control remains with Etisalat, which acquired PTCL in 2005 for $2.6 billion but has withheld $800 million due to unresolved property transfer issues.
As of early Tuesday, diplomatic sources indicate that economic ties between Pakistan and the UAE remain stable despite this review. However, the review is influenced by global economic uncertainty and regional geopolitical tensions.
Key financial details:
- Pakistan repaid approximately $3.5 billion to the UAE to support foreign exchange reserves.
- Saudi Arabia increased its safe deposits in Pakistan from $3 billion to $8 billion.
- The IMF’s executive board is set to meet on May 8 to consider releasing a $1.21 billion tranche for Pakistan.
PTCL stated it is unaware of any shareholders’ plans for changes at this stage. Meanwhile, Anwar Gargash emphasized that “strategic autonomy remains the UAE’s enduring choice.” No final decision has been made regarding Etisalat’s potential exit from PTCL.
