Leading UAE telecom giant Etisalat is contemplating a review of its investment in Pakistan, potentially leading to its withdrawal from Pakistan Telecommunication Company Ltd (PTCL). The review is reportedly influenced by global economic uncertainties, regional geopolitical tensions, and evolving investment strategies among sovereign-linked investors, as per a report in Dawn. Etisalat’s plans are still in the initial assessment phase, with no final decision made yet.
PTCL, a significant entity in Pakistan despite mixed ownership, with the government and its entities holding about 62% stake, is crucial for the country. However, 26% shares and management control are with the Gulf telecom giant Etisalat, which is undergoing corporate restructuring. The remaining 12% shares are owned by private investors through the Pakistan Stock Exchange. PTCL has been experiencing losses in recent years but managed to turn a profit after acquiring Telenor Pakistan.
Recently, Pakistan repaid around $3.5 billion to the UAE, which had been supporting Pakistan’s foreign exchange reserves. Saudi Arabia has also increased its deposits in Pakistan to $8 billion to meet IMF requirements. The IMF is expected to disburse a $1.21 billion tranche for Pakistan soon. In case of portfolio rebalancing by UAE stakeholders, Pakistan has alternative GCC capital flows to ensure investment continuity and operational stability.
The UAE’s recent focus on US dollar reserves and domestic market commitments amid global volatility indicates a standard emphasis on hard-currency buffers and capital efficiency, sources mentioned.
